HK Stock Market Move | Home appliance stocks collectively rebound, El Nio high temperatures overlap with industry peak season, demand for air conditioning sector is recovering with sufficient momentum.

Household appliance stocks collectively rebounded. As of the time of writing, Midea Group Co., Ltd (00300) rose by 4.02% to 89.2 Hong Kong dollars; Hisense Home Appliances Group (00921) rose by 3.31% to 23.72 Hong Kong dollars; HAIER SMARTHOME (06690) rose by 2.03% to 20.1 Hong Kong dollars; JS GLOBAL LIFE (01691) rose by 1.5% to 1.35 Hong Kong dollars. On the news front, the National Climate Center predicts that May will enter the El Nio state, with the initial signs of a heat wave already appearing. From May 10th to 13th, many places in northern China experienced temperatures above 35 for the first time, which is expected to support the demand for air conditioners and refrigerators. In addition, the 618 promotion has started, with household appliances being a core category in the promotion, potentially achieving good performance under this round of enhanced discounts and concentrated consumption rhythm. Industrial analysis shows that according to statistics from Industry Online, by 2024, China's household air conditioner production will account for 80% of global output. Overseas channels have been continuously destocking since 25Q4, and the current overseas inventory pressure has been basically cleared. With the catalysis of high temperatures and the release of traditional peak season demand, overseas shipment elasticity is expected to be fully realized. Overall, with the El Nio heat wave bonus combining with the peak season cycle resonance, the demand recovery momentum in the air conditioning sector is sufficient.