HK Stock Concept Tracking | Smart Home Welcomes Policy "Combination Punch"! Institutions Bullish on Valuation Recovery of Home Furnishing Companies (with Concept Stocks)

On September 14, the Ministry of Commerce and seven other departments issued the "Action Plan for Promoting Smart Home Consumption" (hereinafter referred to as the "Action Plan"), proposing specific measures in seven areas: expanding the supply of high-quality smart homes, improving the smart home standards system, supporting smart home consumption, developing smart homes for the elderly, smoothing the chain of used product recycling services, optimizing community convenience services, and increasing fiscal and financial support. The policy explicitly proposes supporting local governments in independently and reasonably determining subsidy categories and standards for smart home products based on local conditions, coordinating support for whole-home smart home purchases, and encouraging financial institutions to increase loan support for smart home consumption. Analysts believe that this policy is not merely targeted at a single category of home appliance products, but rather promotes the upgrading of smart home consumption from a complete chain of "producthomecommunityservicerecycling." As AI, IoT, home service Siasun Robot&Automation and other technologies accelerate their penetration, smart homes are gradually moving from the early stage dominated by single-device connectivity and remote control toward a stage of whole-home intelligence, proactive services, and AI Agent-driven smart living. The policy further strengthens subsidies, standards, scenarios, and financial support, which is expected to drive smart homes to evolve further from "optional consumption" into an important direction of household consumption upgrading. From the specific content of this Action Plan, the policy's support for the smart home industry is highly systematic. First, on the supply side, the policy encourages manufacturers to strengthen research and development of smart home products, while supporting home furnishing stores, shopping malls, and others in establishing smart home experience centers, whole-home smart and digital family model rooms; on the other hand, it accelerates the cultivation of large home decoration enterprises and platforms, launches personalized and diversified decoration packages, and vigorously develops customized, order-based, and appointment-based services. This means that the consumption model of smart homes is expected to further shift from "single-item purchases" to "integrated solutions." In the past, when consumers purchased smart TVs, smart refrigerators, smart air conditioners, sweeping Siasun Robot&Automation and other products, they often made decisions separately, and devices from different brands might also have ecosystem barriers. As the concept of whole-home intelligence gradually matures, what consumers purchase is shifting from a single smart appliance to a complete set of home intelligence solutions including lighting, air conditioning, door locks, curtains, security, audio-visual, kitchen and bathroom, and more. For home appliance enterprises, this change means there is room for further improvement in average order value, product mix, and service revenue. Second, the policy explicitly proposes improving the intelligent grading evaluation standard system for smart home products, accelerating the formulation and implementation of mandatory national standards such as smart home interoperability, and accelerating the integrated development of whole-home intelligence. At the same time, the policy also proposes promoting IPv6 being enabled by default in home broadband network equipment, improving the IPv6 connectivity rate of home networks, and clarifying basic smart product requirements for newly built fully decorated residences. Industry participants believe that the improvement of "interoperability" standards may be important infrastructure for promoting the large-scale implementation of whole-home intelligence. If smart devices from different brands can connect, recognize, and coordinate more smoothly, the threshold for consumers to use smart homes will be further lowered, and it is also expected to reduce the long-standing industry pain point of "buying smart devices, but the devices cannot interconnect." The direct support for the consumption side in this policy is also noteworthy. The Action Plan proposes that, in accordance with the deployment of the 2026 consumer goods trade-in policy, local governments be supported in independently and reasonably determining subsidy categories and standards for smart home products based on local conditions, and that whole-home smart home purchases be supported in a coordinated manner. Compared with traditional home appliance trade-in policies, this policy further extends the scope of support to whole-home intelligence. This means that in the future consumers may not only receive consumption subsidies for individual smart home appliances, but, where local policies permit, whole-home smart home purchases may also become eligible for policy support. For enterprises, this will help reduce the cost for consumers to upgrade smart homes all at once and increase the penetration rate of high-end smart products and bundled solutions. In fact, smart homes have already become one of the important directions for expanding household consumption. Previously, policies related to "AI + consumption" issued by the Ministry of Commerce and seven other departments also explicitly proposed promoting smart home appliances, smart kitchens and bathrooms, smart lighting and other products, driving the upgrading of consumer electronics products and home furnishing and home appliance products, and promoting the combination of AI and home services, accelerating the popularization of smart sweeping and mopping Siasun Robot&Automation, smart refrigerators, smart kitchen equipment and other products. From this perspective, smart homes are not an isolated single consumption track, but are simultaneously supported by multiple policy directions such as consumer goods trade-ins, AI + consumption, digital home construction, elderly-friendly renovation, and good housing construction. Against the backdrop of pressure on new real estate starts and certain pressure on traditional home consumption growth, intelligent upgrading is expected to become an important lever for the home appliance and home furnishing industries to seek new growth. It is worth noting that the timing of this round of smart home policy implementation coincides with the accelerated penetration of AI from the cloud into physical consumption scenarios. In the past, so-called smart homes were more about controlling home appliances through mobile apps, such as remotely turning on air conditioners, turning off lights, or controlling TVs through voice assistants. With the development of large models, AI Agents, computer vision, and Siasun Robot&Automation technologies, smart homes are undergoing obvious changes. Future smart homes may no longer require users to frequently issue commands, but instead be able to understand the needs of family members and complete tasks through coordination among different devices. For example, AI can start the air conditioner in advance based on the user's return time; the refrigerator can automatically recommend recipes after identifying inventory; kitchen equipment can automatically coordinate according to the cooking process; cameras can trigger the home security system after identifying abnormal situations; and home service Siasun Robot&Automation can further undertake tasks such as cleaning, organizing, and companionship. Therefore, AI Agent + IoT + smart hardware is becoming an important direction for the upgrading of the smart home industry. Shenwan Hongyuan Group pointed out that in 2025 revenue of the furniture manufacturing industry reached 612.5 billion yuan, with a compound growth rate of 4.6% from 2011 to 2025, achieving steady demand growth. Policy optimization boosts , real estate expectations are reversing, and purchasing power is expected to be released; home furnishing valuations are releasing risk at the bottom; long-term support from existing housing stock + market consolidation, enterprises have successively released new smart home products, leading players closely follow AI trends to innovate products, and functional iteration stimulates replacement demand, so the bank is bullish on the valuation recovery of home furnishing companies. Related concept stocks: HAIER SMARTHOME (06690): CLSA issued a research report stating that it maintains a "Outperform" rating on HAIER SMARTHOME and raises the target price from HK$25 to HK$26. HAIER SMARTHOME's second-quarter sales increased by 1.4% year over year. The bank raised HAIER SMARTHOME's net profit forecasts for 2026 to 2028 by 0 to 7% to reflect improved cost efficiency from digital transformation, and also raised its revenue forecast by about 2% in response to the company benefiting from HVAC business restructuring and overseas inventory replenishment. Midea Group Co., Ltd (00300): Jefferies issued a research report stating that after communicating with Midea Group Co., Ltd management, its confidence in second-half growth acceleration, the sustainability of full-year guidance, and shareholder returns has strengthened. The bank expects growth drivers to include an increase in mainland China air conditioner market share, accelerated overseas home appliance sales, and B2B business growth expected to exceed home appliance business growth. The bank maintains a "Buy" rating and raises the H-share target price from HK$115 to HK$124. TCL ELECTRONICS (01070): It previously released interim results for the six months ended June 30, 2026. Group revenue was HK$63.763 billion, up 16.4% year over year; net profit attributable to shareholders was HK$1.529 billion, up 40.2% year over year; gross profit was HK$10.904 billion, up 30.3% year over year.