Oriental Securities: Ice-washing exports remain booming, and domestic sales of white electricity are expected to improve month-on-month

The Zhitong Finance App learned that Orient Securities released a research report saying that the downward trend in Baidian's high domestic sales base continues, and the overall performance in Q2 is in line with expectations. The decline in air conditioning exports has narrowed marginally, and exports of refrigerators and washing machines are booming, and the subsequent trend is expected to continue. The bank believes that the pace of Baidian is expected to be low and high throughout the year, and the monthly growth rate is expected to improve sequentially in the future. In addition, ice-washing exports have benefited from a continued increase in overseas demand, policies and market dividends. Exports from major brands are generally growing, and the overseas demand boom is expected to continue, and the share will continue to gather towards leading brands suited to overseas markets.

Orient Securities's main views are as follows:

The decline in domestic sales of air conditioners has narrowed, and domestic sales of ice washing are relatively stable

According to industry online data, the air conditioning industry sold 11.402 million units in June, -7.4% year on year. Compared with -15.0% year on year in May, the decline narrowed marginally. It mainly benefited from the 618 major promotion. Online product inventory was eliminated, and some companies had some restocking behavior. Domestic sales of refrigerators in June were 3.439 million units, -4.2% year on year; domestic sales of washing machines were 2.66 million units, -9.6% year over year. In terms of brands, Midea and Gree had the highest domestic sales scale in the household air conditioning industry. In June, Midea sold 3.2 million units, with a market share of 28.1%; Gree sold 2.4 million units, -26.2% over the same period, with a market share of 21.0%. Domestic sales of Haier, Oaks, Hisense, Changhong, and TCL followed. Overall, domestic sales of various brands were still divided. In the refrigerator industry, Haier sold 1.25 million units, -0.8% year on year; US domestic sales of 620,000 units, +10.7% year over year, bucked the trend. In the washing machine industry, Haier sold 1.135,000 units, -7.8% year on year; US sold 730,000 units, 14.1% year on year. The bank believes that the pace of Baidian is expected to be low and high throughout the year, and the monthly growth rate is expected to improve sequentially in the future.

White electricity exports are divided, air conditioning exports are still in a downward channel, and overseas high temperatures promote partial storage

According to industry online data, air conditioning exports in June were 6.794 million units, -7.1% year-on-year and -10.4% month-on-month. This was mainly affected by the gradual onset of the off-season, but overall it benefited from the easing of tariffs and the stimulus from high temperatures in Europe. At the brand level, Midea exported 1.8 million air conditioners; TCL exported 1.0 million units, -18.0% year-on-year. Among them, exports from Haier, Changhong, and Zhigao all achieved contrarian growth. Haier exported 49,000 units, +22.5% year over year; Changhong exported 380,000 units, +72.7% year over year; and Chigao exported 80,000 units, +166.7% year over year. The bank believes that considering the effects of inventory removal in overseas regions are gradually showing, local high temperatures and demand for storage will continue to have a positive impact on air conditioning exports in the future, and air conditioning exports are also expected to usher in marginal restoration.

Ice washing exports continued to grow rapidly, maintaining a growth rate of around 20% in June

According to industry online data, refrigerator exports in June were 5.403 million units, +17.0% year on year; washing machine exports were 4.868 million units, +20.2% year over year. The overall trend of refrigerators and washing machines continued to improve, mainly due to strong demand in emerging overseas markets. The high increase in refrigerator exports is due to marginal decline in tariffs and the release of demand for overseas restocking. The high increase in washing machine exports also benefited from factors such as immediate European import demand, Africa's demographic dividend, and improved infrastructure logistics. At the refrigerator export brand level, Omar and Hisense refrigerators exported 1.172,000 units and 1.041 million units respectively, with a steady increase of +30.1% and +30.5% compared with the same period last year. Furthermore, the top 7 refrigerator export brands, including Midea, Meiling, Haier, TCL, and Konka, all continued year-on-year growth in June. In terms of washing machine brands, Haier and Midea exported 1.16 million units and 832,000 units respectively, +23.7% and +7.3% year-on-year, and their leading edge continued to be consolidated. Hisense continued significant year-on-year growth, exporting 606,000 units, or +89.0% year over year. The bank believes that ice-washing exports have benefited from a continued increase in overseas demand, policies and market dividends. Exports from major brands are generally growing, overseas demand is expected to continue to be booming, and the share will continue to gather towards leading brands suited to overseas markets.

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