Huatai Securities' Home Appliance Outlook for 2026: The Bottoming of Cycles and New Opportunities in Smart Technologies

Huatai Securities releases the 2026 annual outlook for the home appliance sector: From January to October 2025, the home appliance sector saw a cumulative increase of 7.7%, ranking in the lower to middle tier within the Shenwan sector. In this round of economic cycle, domestic consumption driven by subsidies is weakening, with export facing tariff disruptions. In this context, Huatai Securities believes there are three major trends to grasp: Firstly, leading white goods companies have scale, distribution channels, and profit moats, making them core assets to navigate through the cycle. Secondly, technological innovation is enhancing the "smart" characteristics of home appliances, presenting opportunities for structural upgrading through smartification. Thirdly, industries such as automotive thermal management, humanoid robots, and AI computing power have significant growth potential and valuation reformation on the second curve.