Huatai Securities: It is expected that the household appliance sector will show a trend of structural recovery in the second quarter.

Huatai Securities research report stated that the household appliance sector is expected to accumulate a 25.4% increase by 2024, ranking among the top of the industry with performance significantly better than the Shanghai Composite Index and the CSI 300. Thanks to the domestic demand policy of "replacing old with new" and export replenishment, the sector's revenue is expected to grow by 5.6% year-on-year, with net profit attributable to the parent company increasing by 7.1%, demonstrating stable profitability. From January to April 2025, the momentum of household appliances "replacing old with new" is expected to continue driving growth, but the sector may face pressure due to challenges in export tariffs, resulting in a slight decline of around 1.6%. Looking ahead to the second quarter of 2025, with continued policy support and domestic demand backing, coupled with the reduction of the previous high base effect, the sector is expected to enter a phase of structural recovery. Opportunities will mainly arise from the recovery of domestic demand and the improvement of export expectations.