Caitong Securities released a research report stating that the current period is a policy vacuum domestically, with terminal retail growth still affected by the high base from last year's trade-in programs. The firm remains optimistic about dividend-yielding assets represented by leading white goods manufacturers.
On the export front, driven by better-than-expected U.S. real estate data, the report suggests stable consumer demand in the U.S. market, coupled with potential further interest rate cuts, which may sustain the momentum in export-related trading. The firm continues to favor representative export sectors such as black goods and white goods.
Key takeaways from Caitong Securities' analysis include: 1. **Review of the Home Appliance Industry**: - Domestic sales grew well in the first half of 2026 due to government subsidies but faced increasing pressure from October 2025 onward due to the high base effect. - Export performance remained strong despite U.S. tariff disruptions, with emerging markets showing particularly robust growth.
2. **Emerging Markets: Fast Growth and High Potential, Rising Brand Influence**: - The report expects exports to outperform domestic sales in 1H2026. Opportunities in export markets can be assessed from both market and product perspectives. - Emerging markets demonstrate faster growth and greater potential, while self-owned brands are expanding overseas rapidly, enhancing their influence.
3. **Product Upgrades and Premiumization Driving Profitability**: - With the launch of new products in spring 2025, Mini LED categories regained market share, achieving broad coverage. - RGB Mini LED products offer improved color gamut and higher average selling prices compared to traditional Mini LED, further strengthening the gross margin outlook as these products expand globally.
4. **Expansion into New Segments for Growth Opportunities**: - As consumers increasingly seek immersive experiences, personalized recording, efficiency, and convenience, new home appliance categories are evolving from basic functionality to lifestyle solutions. - Innovations like smart glasses, action cameras, drones, and UV printers are expected to unlock new growth avenues for appliance manufacturers.
**Risks**: Potential shortfalls in government subsidies, slower-than-expected export growth, U.S.-China tariff volatility, and raw material price fluctuations.
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