On May 12, the Hong Kong stock market's Home Appliances sector experienced a strong upward trend, with several leading stocks performing exceptionally well. As of the close of that day, HISENSE HA (00921) rose by 10.04%, HAIER SMARTHOME (06690) increased by 8.33%, Midea Group Co., Ltd (00300) climbed 4.07%, and TCL ELECTRONICS (01070), JS GLOBAL LIFE (01691), and others also saw gains. This round of increase not only reflects the market's optimistic expectations regarding the improvement of the Home Appliances industry's fundamentals but is also closely related to the recent influx of favorable policies and a warming consumer demand.
Policy-driven industry upgrades activate market potential through trade-in programs.
Since 2024, the trade-in policy has continuously gained traction, becoming a core driver of home appliance consumption. According to reports from China National Radio, the trade-in policy for consumer goods has significantly boosted home appliance sales, with over 37 million new digital products purchased, and consumer demand for intelligent and high-end products has surged. The policy dividend not only stimulates sales in the short term but also promotes the industry's transformation toward intelligence and sustainability.
Data from the Ministry of Commerce shows that in the first quarter of 2025, the trade-in policy drove a 1.6 percentage point increase in the total retail sales of consumer goods, demonstrating the significant 'dual-wheel drive' effect of policies and activities. Against this backdrop, home appliance companies have responded accordingly; leading companies such as Midea and Haier are seizing the green and intelligent track by optimizing product structures and enhancing energy efficiency standards while increasing investment in AI technology research and development, transitioning products from 'functional upgrades' to 'intelligent interaction.' For example, Midea has launched air conditioners equipped with AI energy-saving algorithms, improving energy efficiency by 25%; Haier is achieving scenario-based linkage of home appliances through intelligent interconnectivity, further aligning with the demands of consumption upgrades.
AI empowers the entire industry chain; cross-border cooperation reshapes competitive boundaries.
Home appliance giants are seizing the intelligent ecological high ground through cross-field cooperation. Recently, Midea Group and HISENSE HA have reached a strategic cooperation agreement to jointly tackle the application of AI intelligence in manufacturing, logistics, and other scenarios while accelerating process innovation and joint talent cultivation. Midea's CTO Wei Chang revealed that the company is developing humanoid robots, which will cover diverse scenarios such as equipment inspection and commercial guidance in the future.
The strategic布局 of leading enterprises is reshaping the industry ecology. Gree Electric Appliances, Inc.of Zhuhai has optimized its cost structure by reducing sales expenses by 5.05 billion yuan while reinforcing its advantage based on its technical accumulation from 13 consecutive championships in the central air conditioning market. HAIER SMARTHOME, with over 50% of its revenue coming from overseas, is building a moat in the global competition. Notably, the competition for the title of 'number one' in the air conditioning industry is quietly changing, as Midea and Gree compete for industry discourse rights through different statistical approaches in their earnings reports. However, it cannot be denied that the growth in retail sales of air conditioners in the dual-line market has become the strongest signal of industry recovery.
Export and domestic demand resonate; structural repair breeds new opportunities.
From the performance in the secondary market, the Home Appliances Sector has already taken the lead in a recovery trend. HTSC's Research Reports indicate that the Home Appliances Sector (Shenwan) has a cumulative increase of 25.4% in 2024, outperforming the Large Cap Index, and the growth trend will continue in the first quarter of 2025 supported by export replenishment and domestic demand policies.
It is worth noting that the current Industry still faces structural challenges. Data shows that from January to April 2025, the Home Appliances Sector experienced a pressured adjustment of 1.6%, mainly affected by the previous high base and fluctuations in export tariffs. However, Institutions generally believe that with the 618 sales event approaching, combined with the high temperatures catalyzing Air Conditioner demand, the Industry is expected to welcome a "simultaneous increase in volume and price". Aowei Cloud Network monitoring shows that during the May Day period in 2025, online market Air Conditioner retail sales surged by 61.4% year-on-year, with an average Air Conditioner price growth of 2.0% year-on-year.
The trend of Consumption Upgrade deepens, and 618 may become a key node for the Industry's recovery.
During the "May Day" promotion period in 2025, the Home Appliances market showed a pattern of "high growth online and stabilization offline." Aowei Cloud Network data indicates that online retail sales increased by 24.7% year-on-year, with categories like Air Conditioners, water purifiers, and desktop steam baking machines performing outstandingly; the offline market saw a slight increase of 3.6% year-on-year in retail sales driven by the old-for-new policy, while the structural upward trend of average prices slowed down.
It is noteworthy that the penetration rate of energy-saving, smart, and health-oriented products continues to rise, with first-level energy efficiency Home Appliances, new air Air Conditioners, and zero-coating Rice Cookers becoming consumer hotspots. This trend aligns closely with policy guidance and is expected to further push the Industry towards high-end and scenario-based transformation.
Looking ahead, the 618 Mid-Year Sales event will become a key battleground to test the robustness of consumption recovery. E-commerce platforms and Home Appliances companies have made early preparations with multiple discounts, such as presale subsidies and old-for-new promotions to attract consumers. Institutions predict that during 618, the sales of Home Appliances categories are expected to achieve double-digit growth, with Air Conditioners, kitchen appliances, and smart Home Appliances likely to be the biggest winners.
Conclusion
Under the multiple Bullish conditions of policy dividend release, upgraded consumer demand, and driven by technological innovation, the Home Appliances Industry is ushering in structural repair opportunities. The strong performance of Hong Kong stock Home Appliances demonstrates the market's positive feedback on the Industry's recovery and lays the groundwork for future growth. As the 618 consumption season approaches, the Industry may welcome a new growth cycle, and companies focusing on smart, green, and Global Strategy layouts are expected to gain a competitive edge.
