The Zhitong Finance App learned that Guolian Securities released a research report stating that recent interest rate cuts by the central bank continued to increase, the central government quickly relaxed the demand side policy for real estate in the early stages, high-tier cities continued to follow suit, mortgage interest rates declined in the short term, residential sales showed signs of recovery in the short term, and post-cycle valuation repairs of household appliances need to be tracked; the impact of channel changes on share is worth paying attention to. The leading home appliances may reap gains in the process of rising from sinking channels and packaging channels, and new categories are expected to achieve better growth. We recommend Vantage Co., Ltd. (002035.SZ), Bull Group (603195.SH), and Boss Electric (002508.SZ), which have strong alpha standards.

White power: This round of trade-in is comparable to that of going to the countryside for home appliances. Local rules have continued to be implemented since August. Policy implementation is expected to begin to pay off in September. Emerging markets/OBM contributed to increased export sales, demand in Europe and the US bottomed out and improved, and air conditioning exports accelerated sequentially; supported by structural upgrades, the average price of the industry remained steady. Taking into account the resilience of domestic sales, flexibility can be expected, leading export orders have maintained rapid growth, leading performance expectations are steady, reporting quality is excellent, and subsequent operations are supported. We recommend Midea Group (000333.SZ), Haier Smart Home (600690.SH), Gree Electric (000651.SZ), Hisense Home Appliances (000921.SZ), etc.

Black TV: The domestic and foreign sales of color TV are still divided. Domestic demand is relatively lackluster. Emerging markets support global shipping performance. Driven by the European Cup and Olympics during the year, the global market size is expected to increase steadily in 2024. At the same time, the logic of increasing the global share of leading domestic color TV continues to be implemented; the impact of profit side panel fluctuations is weakening, product upgrades help improve profits, and leading company Hisense Video (600060.SH) is recommended.

Small household appliances: Sweepers have recently been introduced, and the cost performance ratio of new products has been further improved. In many places, the trade-in rules have been extended to optional smart home appliances such as sweepers/floor washers in addition to the central 8 categories of essential appliances, penetrating space to support flexibility, and the new product policy is expected to resonate; in addition, the overseas share of leading companies is steadily increasing, and the general trend of brands going overseas is trending. The recovery of optional categories still depends on the consumer boom. The 2024Q1 small kitchen appliance business reached an inflection point. Although the Q2 industry boom and recovery slope fluctuated, opportunities to reverse the difficult situation during the year are still worth paying attention to; in addition, emerging categories, channels, and structural opportunities brought about by going overseas are also worth paying attention to. I recommend Stone Technology (688169.SH), Covos (603486.SH), and focus on Jimi Technology (688696.SH), Little Bear Electric (002959.SZ), etc.