Alright, let’s talk home appliances. The sector’s been quietly outperforming, and frankly, the market’s been sleeping on it. Huatai Securities just dropped a report highlighting a remarkable 25.4% year-to-date gain – beating both the Shanghai Composite and CSI 300 hands down.
Photo source:www.chinadaily.com.cn
That’s not just luck, folks. The ‘trade-in’ program is fueling domestic demand, and we’re seeing a vital restocking of exports. Last year showed solid growth: 5.6% revenue increase and a healthy 7.1% jump in net profits.
Now, 2025 started with a slight hiccup, a 1.6% dip due to export headwinds. But don’t panic – this is temporary. We’re looking at a structural recovery brewing for Q2.
Let’s get into why. The government’s ‘trade-in’ policies are staying strong, offering consistent domestic support. Plus, we’re shedding the weight of a tough comparison base from the previous year.
Here’s a deeper dive into the key drivers:
The ‘trade-in’ policy incentivizes consumers to replace older appliances with newer, more efficient models. This is a significant boost for domestic sales.
Export restocking, while facing new tariff challenges, remains a crucial component of the sector’s potential. Expect fluctuations here, but not necessarily decline.
Understanding the base effect is key. Previous year’s strong performances create tougher comparisons. A slight dip now doesn’t indicate fundamental weakness.
The opportunity lies in a resurgence of domestic demand coupled with a stabilization of export expectations. This isn’t a blanket recovery; it’s about picking the winners. Focus on companies adaptable to market changes and strong in innovation.
Don’t underestimate the power of a well-timed policy boost and a maturing consumer base. This is where the real money will be made.
