---
title: "HSBC Research Expects Gradual Earnings Recovery for CN Home Appliance in 2H; Top Pick MIDEA GROUP; YADEA TP Cut to HKD14"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/292978600.md"
description: "HSBC Research anticipates a gradual earnings recovery for the Chinese home appliance sector in H2 2026, citing easing pressures despite Q2 headwinds. The broker named Midea Group and Ninebot as top picks, maintaining Midea's HKD110 target price based on strong shareholder returns and diversified strategy. Conversely, HSBC cut Yadea's target price to HKD14 and lowered its 2026-2027 earnings forecasts by 6% and 7%, respectively."
datetime: "2026-07-17T03:25:50.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/292978600.md)
  - [en](https://longbridge.com/en/news/292978600.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/292978600.md)
generator: "portal-rs"
---

# HSBC Research Expects Gradual Earnings Recovery for CN Home Appliance in 2H; Top Pick MIDEA GROUP; YADEA TP Cut to HKD14

The home appliance sector came under pressure in 2Q26 owing to weak demand, rising costs and FX losses, HSBC Global Investment Research published a report saying. However, the broker was bullish that sector earnings will gradually recover in 2H26, with easing pressure on earnings growth. Its top picks were MIDEA GROUP (00300.HK) +0.250 (+0.272%) Short selling $256.25M; Ratio 38.899% and NINEBOT (689009.SH) -0.610 (-1.486%) .

The broker was positive on MIDEA GROUP for its strong shareholder returns and diversified strategy, and expected its revenue to grow 4% YoY in 2Q26. As the company strengthened FX hedging in 2Q, while investment gains related to CXMT offset part of the FX losses and rising costs, net profit for 2Q was estimated to hike 1% YoY. The broker maintained the target price for MIDEA GROUP's H shares at HKD110.

Separately, HSBC Global Investment Research cut the target price for YADEA (01585.HK) +0.130 (+1.280%) Short selling $35.18M; Ratio 47.057% and lowered its earnings forecasts for 2026 and 2027 by 6% and 7%, respectively.  
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-16 16:25.) (A Shares quote is delayed for at least 15 mins.)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**