Home appliance stocks are trading lower in the morning. As of the time of writing, Hisense Ha (00921) fell 3.30%, trading at HKD 21.95; Vesync (06690) fell 1.62%, trading at HKD 4.26; Skyworth Group (00751) fell 1.07%, trading at HKD 2.77.
According to noted financial application 'Zhong Tong Cai Jing', home appliance stocks were trading lower in the morning. As of the time of writing, Hisense Ha (00921) fell 3.30%, trading at HKD 21.95; Vesync (06690) fell 1.62%, trading at HKD 4.26; Skyworth Group (00751) fell 1.07%, trading at HKD 2.77.
According to data released by Aowei Cloud Network (AVC), first-half retail sales of white goods amounted to RMB 231.9 billion, a year-on-year decline of 7.0%, with 77.74 million units sold, a year-on-year decline of 3.6%. Online retail channels contributed 22.71 million units, up 5.2% YoY, with RMB 49 billion sales, down 2.5% YoY. Driven down by downgraded consumption and sharp price decrease in air conditioner products, the overall market showed a downward trend in both structure and price.
China International Capital Corporation published a research report stating that, due to limited purchasing power of consumers and the downward trend of the real estate industry in China, the domestic home appliance market has only seen a slight growth since 2019, and the market has basically matured. However, there is structural growth in categories such as floor-cleaning robots and high-speed hair dryers. Currently, the home appliance market is driven mainly by replacement demand instead of real estate investment, which invalidates concerns of the market being negatively affected by the property market's downturn. With a healthy competition landscape in the home appliance industry, cost and price competition remain within controllable range, thus there is no need for excessive market concern.
China Galaxy Securities believes that as domestic demand for home appliances improves as expected, overseas inventory replenishment boosts exports, and the sector's valuation declines, sector leader companies yield some margin of safety.