Zhongjin: The demand in the small household appliance industry is expected to continue to recover, focusing on companies with improved profitability.

The China International Capital Corporation stated in a document that driven by the policy of trading in old appliances for new ones and the low base effect, it is expected that the demand for small household appliances will continue to recover this year. In this context, industry competition is easing, companies are focusing on high-quality development, industry average prices are further recovering, and platform fee reductions are alleviating company pressure. Taking all factors into account, it is expected that the profitability of small household appliance companies will significantly improve. At the company level, the focus is on improving profitability. Against the backdrop of a moderate recovery in demand, easing price wars and improving the structure to ensure stable gross profit margins, reducing platform fees and controlling costs to lower expense ratios will ultimately lead to the restoration of company profitability. Small household appliance companies have a low base in the early stages, and industry and internal resonance will bring a turning point in performance, with improvements in profit expected to outperform revenue.