Zheshang: In the third quarter of 25, grasp the head of the large household electrical appliances and pay attention to the competitive situation of sweeping robots.

Zheshang released a research report stating that according to industry online data, the domestic sales volume of refrigerators, washing machines, and air conditioners in July-August increased by +7%, +1%, and +8% respectively year-on-year. It is expected that the domestic sales revenue of the white goods industry in Q3 will slow down compared to Q2. In terms of cleaning appliances, according to Ovi Yunwang, in 25Q3 (W27~W39, from June 30th to September 28th), the online retail sales of Stone, Ecovacs Robotics sweeping Siasun Robot&Automation increased by +68%, +122%, and the online retail sales of floor scrubbers increased by +35% and +1289% year-on-year. The average online retail prices of Stone, Ecovacs Robotics sweeping Siasun Robot&Automation in 25Q3 (W27~W39) increased by +3% each, indicating an improvement in the competitive landscape. It is expected that the domestic profit margin in Q3 will recover compared to Q2. Zheshang's main points are as follows: White goods: The domestic sales prosperity in Q3 slightly slowed down compared to the previous quarter, focusing on the resilience of leading companies. Domestic sales: According to industry online data, the domestic sales volume of refrigerators, washing machines, and air conditioners in July-August increased by +7%, +1%, and +8% year-on-year, respectively. Compared to 25Q2 (where domestic sales volume of refrigerators, washing machines, and air conditioners increased by +8%, +8%, +11% year-on-year), there was a slowdown. This slowdown is mainly due to the continuation of national subsidy policies and the impact of oversold demands from the previous period. It is expected that the domestic sales revenue of the white goods industry in Q3 will slow down compared to Q2. Export sales: According to industry online data, in July-August, the domestic sales volume of refrigerators, washing machines, and air conditioners increased by +1%, +14%, and -10% respectively. The increase in the export speed of refrigerators and air conditioners is mainly due to the impact of North American tariffs on shipment pace and the increase in base numbers in emerging markets. It is suggested to focus on the resilience of leading companies. The performance growth of leading white goods companies is supported by overseas expansion and operational efficiency. The performance of leading white goods companies in the third quarter is expected to be secure. The following are the third quarter performance previews of key listed white goods companies: 1) Midea Group Co., Ltd(000333.SZ): expected revenue to increase by +9%, and net profit attributed to shareholders to increase by +8%; 2) HAIER SMARTHOME(600690.SH): expected revenue to increase by +7%, and net profit attributed to shareholders to increase by +11%; 3) Hisense Home Appliances Group(000921.SZ): expected revenue to increase by +2%, and net profit attributed to shareholders to increase by +10%. Consumer electronics: Mini LED improves domestic profitability, overseas growth continues Domestic sales: According to Ovi Yunwang data, the average online retail price of color TVs in July-August increased by +14% year-on-year, mainly due to the increased penetration rate of Mini LED. It is expected that Mini LED will continue to improve the profitability of consumer electronics companies. Export sales: According to the General Administration of Customs data, in July-August, the export volume of color TVs decreased by -1% year-on-year, remaining relatively stable overall. Chinese consumer electronics companies continue to increase their market share overseas, with export speed of consumer electronics companies expected to outperform the overall industry. Panels: According to IHS data, the prices of 55-inch and 65-inch panels in 25Q3 were $119 and $171 respectively, a decrease of -7% and -4% year-on-year. It is expected that the decrease in panel prices will help improve the gross profit margin of consumer electronics companies. The improvement in the penetration rate of Mini LED in the domestic market has led to an increase in the average retail price, driving an improvement in industry profit margins. At the same time, Chinese companies are expected to continue to outperform the industry in terms of exports. The third-quarter performance previews of key listed consumer electronics companies are as follows: 1) Hisense Visual Technology(600060.SH): expected revenue to increase by +9%, and net profit attributed to shareholders to increase by +15%. Cleaning appliances: Focus on improvement in the competitive landscape of sweeping robots According to Ovi Yunwang, in 25Q3 (W27~W39, from June 30th to September 28th), the online retail sales of Stone, Ecovacs Robotics sweeping Siasun Robot&Automation increased by +68%, +122%, and the online retail sales of floor scrubbers increased by +35% and +1289% year-on-year. The average online retail prices of Stone, Ecovacs Robotics sweeping Siasun Robot&Automation in 25Q3 (W27~W39) increased by +3% each, indicating an improvement in the competitive landscape. It is expected that the domestic profit margin in Q3 will recover compared to Q2. The improvement in the competitive landscape of sweeping robots in the domestic market will increase the profitability of leading companies in this sector. The following are the third-quarter performance previews of key listed sweeping robot companies: 1) Beijing Roborock Technology(688169.SH): expected revenue to increase by +83%, and net profit attributed to shareholders to increase by +50%; 2) Ecovacs Robotics(603486.SH): expected revenue to increase by +41%, with net profit attributed to shareholders expected to be between 4.6 to 5 billion yuan. Risk warning: Intensifying industry competition; rising raw material prices; deviation in calculated results.