According to the Zhitong Finance APP, Guotai Junan has released a research report stating a &#34;buy&#34; rating for the home appliance industry. In Q2, leading brands operated steadily, with short-term tariff disruptions having diminishing effects, and performance exceeding expectations mainly concentrated in small appliances and cleaning appliances. It is recommended to focus on four main lines: 1) Core drivers for overseas expansion, key targets in smart home; 2) Performance stable and improving, with upward elasticity; 3) Leading companies operating steadily combined with high dividends, providing cost-effective allocation; 4) Home appliance companies expanding into new areas for a second growth curve.
<h2>Guotai Junan's main viewpoints are as follows:</h2>
The effect of domestic subsidies continues, and tariff disruptions are diminishing marginally
In Q2 2025, the revenue and profit of the home appliance sector increased by 5.6% and 3.1% year-on-year, respectively, with a slight deceleration compared to Q1. The effect of domestic subsidies continues, but the marginal effect is diminishing. In Q2, tariffs disrupted orders for export enterprises, but subsequent disruptions are expected to ease. Breaking down the sector, leading white goods companies operate steadily, the prosperity of cleaning appliance brands continues, the operation of small kitchen appliances has partially recovered, real estate-related companies face revenue pressure, and export OEMs are temporarily suppressed by tariffs. In Q2 2025, the revenue growth rate of the white goods sector was 5.8%, and the profit growth rate was 6.0%, with leading first-tier white goods brands outperforming second and third-tier brands, indicating an increase in industry concentration. The revenue growth rate of cleaning appliances (brand manufacturers + OEMs) was 31.5% and -23.8%, respectively, with leading companies (such as Roborock and Ecovacs) performing well in revenue and profit, mainly benefiting from the continuation of high industry prosperity and a slowdown in competition from brands like Chasing. OEMs are under short-term pressure from tariffs, but subsequent pressure is expected to gradually ease. The revenue growth rate of black goods was 1.4% and -16.5%, respectively, with brand companies experiencing a slowdown in volume growth but continuing to see an increase in average prices. Affected by weak real estate completions, the revenue growth rate of the kitchen appliance sector in Q3 2024 was -5.5% and 1.1%, respectively; integrated stoves faced more significant pressure, with revenue growth rates of -39.6% and -16.8%.
Overseas expansion remains a long-term direction, with new businesses emerging
In H1 2025, the overall overseas revenue share of the home appliance sector was 39.5% (up 1.4 percentage points year-on-year), and the overseas share continues to rise. Notably, many companies have indicated in their semi-annual reports that they are increasing efforts to expand into new fields. Bull Group stated that it is actively promoting the layout of data centers and solar lighting businesses, Yitian Intelligent is actively pursuing liquid cooling and computing power layouts, and Rongtai Health has also expressed more positivity regarding in-vehicle massage and massage robots.
Compared to profit forecasts, the performance of companies in Q2 2025 exceeded expectations mainly in small appliances and cleaning appliances
Among the 40 companies covered by this institution, 6 companies had revenue exceeding expectations, and 4 companies had performance exceeding expectations; 13 companies had revenue below expectations, and 19 companies had performance below expectations. Among them: 1) Leading white goods companies generally met expectations, with Gree and second and third-tier white goods releasing pressure in Q2; 2) In the kitchen appliance sector, traditional leading kitchen appliance companies (such as Robam and VATTI) faced slight pressure but overall met expectations, while integrated stove performance differed significantly from expectations; 3) The prosperity of cleaning brands is relatively high, generally meeting or exceeding expectations, with Q3 expected to continue improving; OEMs faced short-term pressure in Q2 due to tariff suppression; 4) Small kitchen appliance companies (such as BEAR APPLIANCE, Xinbao, and Beiding) showed improvement in operations, recovering from difficulties compared to 2023-2024
5) Component companies are also showing a trend that is generally below expectations due to higher bargaining power from downstream and short-term tariff impacts.
Risk Warning: Risks of raw material price fluctuations and intensified industry competition

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CITIC Securities released a research report stating that the home appliance industry’s Q2 performance exceeded expectations, mainly concentrated in small appliances and cleaning appliances, and gave an "Overweight" rating. The short-term impact of tariffs is diminishing, and leading brands in white goods and cleaning appliances are operating steadily. It is recommended to pay attention to companies expanding overseas, with stable and improving performance, leading high dividends, and cross-industry expansion. In Q2 2025, the revenue growth rate for white goods is +5.8%, and for cleaning appliances, it is +31.5%. The overall overseas revenue proportion is 39.5%, with accelerated new business expansion

Zhitong

Xinbao Electrical Appliances Holdings

VATTI

BEAR APPLIANCE

Rongtai health

Cathay Securities and Haitong Securities: In the first half of 2025, leading home appliance brands operate steadily, and the impact of tariff disturbances is diminishing