Wanlian Securities: The public offering fund holding ratio of the home appliance industry in the third quarter of 2024 continues to increase, maintaining the industry's "outperform the market" rating.

Wanlian Securities released a research report stating that the public fund holdings in the home appliance industry in Q3 2024 continued to rise for 7 consecutive quarters. Leading stocks in the white goods sector, sweeping robots, home appliance components, and other sub-sectors received increased holdings, while leading stocks in the black goods sector experienced decreased holdings. As for the mainland stock investment, core stocks saw mostly decreased holdings in the third quarter, while kitchen and bathroom appliances/black goods stocks received increased holdings. Looking ahead, with the accelerated implementation of the old-for-new policy, domestic sales are expected to rebound in September, and it is predicted that domestic sales will continue to improve in the fourth quarter. In terms of exports, the US has begun to cut interest rates, contributing to the growth in emerging markets. The industry's optimism is expected to continue, maintaining an industry rating of "stronger than the broader market." It is recommended to continue monitoring leading white goods stocks with good performance in both domestic and international markets, real estate cyclical recovery opportunities under continued real estate policies, and related stocks with a second growth curve. Major Points from Wanlian Securities: Increasing percentage of heavy positions compared to the previous quarter Based on data from Hithink RoyalFlush Information Network and Wind, the total market value of public funds' heavy positions in the SW home appliances industry at the end of Q3 2024 was 138.07 billion yuan, a 31.0% increase from Q2 2024, accounting for 4.38% of the total market value of A-share heavy positions, higher than the standard ratio of 2.15 percentage points. This percentage has been continuously rising for 7 consecutive quarters. In terms of market performance, the SW home appliances industry index in Q3 2024 rose by 16.85%, achieving a relative return (compared to the Shanghai and Shenzhen 300 Index) of 0.78%. Continued increase in holdings for Midea and Gree Looking at the various sub-sectors: (1) Among the white goods industry stocks, HAIER SMARTHOME, Midea Group Co., Ltd, Gree Electric Appliances,Inc.of Zhuhai continued to see significant increases in holdings, while HAIER SMARTHOME and Hisense Home Appliances GroupA/H saw decreased holdings; (2) In the black goods industry, Hisense Visual Technology continued to see reduced holdings, and Shenzhen Mtc also saw reduced holdings; (3) In the kitchen and bathroom appliances industry, bathroom appliance main stocks have generally seen increased holdings for two consecutive quarters, while kitchen appliance Hangzhou Robam Appliances saw decreased holdings, and Vatti Corporation saw increased holdings; (4) In the small home appliances industry, (a) main stocks in the kitchen small home appliances industry saw increased holdings; (b) personal care small home appliances industry, Shanghai Flyco Electrical Appliance saw decreased holdings; (c) cleaning small home appliances industry, Ecovacs Robotics, Beijing Roborock Technology continue to see noticeable increases in holdings; (5) Stocks in the home appliances components industry generally saw increased holdings; (6) Among the lighting equipment industry stocks, Opple Lighting, Up-shine Lighting continued to see increased holdings. Mainland stock investment situation: mostly decreased holdings, with some kitchen and bathroom appliance stocks receiving increased holdings. Taking a comprehensive look at the various sub-sectors, (1) In the white goods industry, core leading stocks in the air-conditioning and washing sectors have generally seen decreased holdings; (2) In the black goods sector, Sichuan Changhong Electric and other black goods have generally seen increased holdings, while Shenzhen Mtc and Hisense Visual Technology saw decreased holdings; (3) In the kitchen and bathroom appliances industry, Hangzhou Robam Appliances and Marssenger Kitchenware saw increased holdings; (4) In the small home appliances industry, clean small home appliances have generally seen decreased holdings, with Guangdong Xinbao Electrical Appliances Holdings and Joyoung Co.,Ltd in the kitchen small home appliances sector seeing decreased holdings; (5) In the home appliances components sector, Zhejiang Sanhua Intelligent Controls saw noticeable decreases in holdings; (6) Stocks in the lighting equipment industry generally saw decreased holdings. Risk factors: Fluctuations in raw material prices, fluctuations in the RMB exchange rate, exports falling below expectations, the old-for-new policy not being implemented as expected, performance falling below expectations, data statistics errors, etc.