Guosen: August household appliance retail growth is good, companies appearing at IFA demonstrate determination to go global.

Guosen released a research report stating that in August, the retail sales of household appliances continued to show a good growth trend, with offline sales picking up and online sales maintaining a relatively stable growth rate entering the off-season. Household appliance exports remain under pressure, with a 6% year-on-year decrease in August. At the Berlin IFA exhibition, domestic household appliance companies have showcased new products, demonstrating their confidence in overseas development. Recommended stocks include Midea Group Co., Ltd(000333.SZ, 00300), Bear Electric Appliance(002959.SZ), Beijing Roborock Technology(688169.SH), etc. Guosen's main points are as follows: In August, household appliance retail sales showed good growth, with trends such as cleaning robots and small kitchen appliances continuing to perform well. In August, with the third batch of national subsidies in place, offline household appliance retail sales improved; while online essential product categories saw a slight slowdown in growth, overall maintaining a good growth trend. According to data from the Statistics Bureau, China's total retail sales of consumer goods increased by 3.4% year-on-year in August, with a cumulative year-on-year increase of 4.6%; retail sales of household and audio-visual equipment above quota increased by 14.3% year-on-year in August, with a cumulative year-on-year increase of 28.4%. With nearly a year having passed since the national subsidies took effect, the stimulus effect has weakened, coupled with rainy weather nationwide in August, leading to a slight slowdown in household appliance retail sales. According to data from AVC Cloud, in August, the year-on-year retail sales of air conditioners online/offline were +6.8%/+11.2%, refrigerators online/offline were -9.3%/+16.1%, washing machines online/offline were +9.1%/+20.4%. The retail prosperity of kitchen major appliances and small appliances continued, with the retail sales growth of range hoods, gas stoves, and dishwashers maintained at around 20% in August; the year-on-year retail sales of rice cookers online/offline were +15.4%/+24.1% and the online retail sales of air fryers increased by over 30%. New cleaning appliances maintained strong growth, with the retail sales of robotic floor cleaners from Wuxi Online Offline Communication Information Technology Co., Ltd. growing by over 80% in August, and the retail sales of floor scrubbers growing by 71.7%/27.5%. Household appliance exports in August decreased by 6%, showing resilience amid tariff disturbances. According to data released by the General Administration of Customs, China's household appliance exports in August reached 60.37 billion yuan, a year-on-year decrease of 6.3%; in terms of US dollars, the export value was $8.43 billion, a year-on-year decrease of 6.6%; the export volume was 400 million units, a year-on-year decrease of 3.6%; the average export price decreased by 3.2% year-on-year to $20.9 per unit. Since the implementation of tariffs in April, the decline in China's household appliance exports in May and June was close to 8%, and in July and August, with the easing of tariff policies, the decline narrowed slightly. Since the imposition of tariffs in April, Chinese household appliance companies have accelerated their pace of capacity expansion and offshore production in Southeast Asia and other regions, which is expected to have an impact on the growth rate of Chinese household appliance exports. With the clarification of tariff policies in the future, it is expected that China's household appliance exports will return to a stable growth trajectory, and there is still great potential for the development of household appliances overseas. Household appliance companies have unveiled new products at IFA, with Siasun Robot & Automation entering the lawn mowing industry. The Berlin IFA exhibition was held from September 5th to September 9th, with domestic household appliance companies such as Midea Group Co., Ltd, HAIER SMARTHOME, Hisense Home Appliances Group, Hisense Visual Technology, TCL, Beijing Roborock Technology, and Ecovacs Robotics showcasing new products and demonstrating a strong determination to enter overseas markets. Midea's booth at the exhibition was stunning with the theme "Master Your Home", showcasing smart series of appliances such as refrigerators, kitchen appliances, and air conditioners; Haier presented its latest technological achievement, AI Eye, and announced sponsorship of two top European football clubs; Hisense Visual Technology and TCL launched cutting-edge TV products; Beijing Roborock Technology introduced the first all-terrain smart lawn mower and a five-axis folding bionic robotic arm floor cleaner. Core investment portfolio recommendations: For white goods, recommended stocks include Midea Group Co., Ltd, Gree Electric Appliances, Inc. of Zhuhai, HAIER SMARTHOME, Guangdong TCL Smart Home Appliances, Hisense Home Appliances Group; for kitchen appliances, Hangzhou Robam Appliances is recommended; for small household appliances, recommended stocks include Bear Electric Appliance, Beijing Roborock Technology, Ecovacs Robotics. Risk warning: Intensified market competition; lower-than-expected demand; significant increase in raw material prices.