Caitong Securities: The emerging market for home appliances is growing rapidly and has great potential, and continues to be optimistic about the export sector

The Zhitong Finance App learned that Caitong Securities released a research report saying that in the current domestic policy vacuum period, the terminal retail growth rate is still affected by last year's trade-in base, and the bank is still optimistic about dividend assets represented by white electricity. In terms of export sales, driven by US real estate data exceeding expectations, the bank believes that it may bring about stable demand in the US consumer market, and further interest rate cuts are expected in the future, then the popularity of export chain transactions may continue, and it continues to be optimistic about representative export sectors such as black electricity and white electricity.

The main views of Caitong Securities are as follows:

Review of the situation in the home appliance industry

In terms of domestic sales, domestic sales grew relatively well in the first half of the year, driven by national subsidies. Since October 2025, growth has gradually come under pressure under a high national supplement base; in terms of export sales, despite disturbances in export orders due to US tariffs, overall export sales growth performance was relatively good. By region, emerging markets performed relatively well.

Emerging markets are growing rapidly and have great potential, and the influence of private brands is increasing

Looking at the overall domestic and foreign sales situation of home appliances, the bank believes that 1H's export performance in 2026 may still be better than domestic sales. Opportunities in the export market can be considered in two dimensions: market and product. By region, the growth rate of emerging markets is relatively good, and there is great potential for market space. By category, the growth rate of private brands going overseas is growing rapidly, gradually increasing their influence.

The product structure continues to be upgraded, and the proportion of high-end products has increased, contributing to the level of profit

With the launch of new products in the spring of 2025, the Mini LED category gradually returned to a trend of increasing share and basically completed basic coverage. The color gamut of RGBmini LED products is further improved compared to traditional mini LEDs, and the customer unit price is higher. The bank believes that with the promotion of the RGBmini LED product line and the launch of corresponding products overseas, the logic of subsequent gross margin increases will be further strengthened.

Actively lay out new tracks, and new categories open up new growth poles

As consumers continue to pursue immersive freestyle experiences, personalized records and expression, efficiency and convenience improvements, new categories of home appliances will transform basic functional requirements to meet new lifestyles. Demand for product innovations in segmented scenarios such as smart glasses, sports cameras, drones, UV printers, etc. will be rapidly released, and the new categories will open up new growth poles for home appliance companies.

Risk warning: The investment of national supplements is lower than expected, the pace of export growth is lower than expected, repeated US tariffs on China, and the impact on raw material prices