1、 Watchlist the stock on Insights Direct to receive prompt updates ed-JS/sa-CS/AH Scaling smart,powered by AI and going global Leading Chinese home appliance Leading Chinese home appliance companiescompanies continue to benefitcontinue to benefit from government stimulus and from government stimulus

2、and resilientresilient overseas overseas demand,withdemand,with rising adoption ofrising adoption of smart products smart products drivingdriving growth growth Leveraging scale,strong R&D,and Leveraging scale,strong R&D,and expanding global reachexpanding global reach,we re,we re-initiate coverage o

3、n initiate coverage on HaierHaier and and MideaMidea with BUY ratingwith BUY ratings;s;both enjoyboth enjoy leading market leading market positions,positions,ample room for overseas expansionample room for overseas expansion,and attractive valuations.Their relatively higher and attractive valuations

4、.Their relatively higher overseas overseas localisation vs.Chinese peers also localisation vs.Chinese peers also helps mitigatehelps mitigate tariff tariff risksrisks Additionally,MAdditionally,Mideas ideas development of development of humanoid robotics humanoid robotics throughthrough KUKAKUKA enh

5、ances its mediumenhances its medium-term prospects,positioning it at the term prospects,positioning it at the forefront of global technological change forefront of global technological change ChinaChina -worlds largest home appliance worlds largest home appliance marketmarket.Industry sales exceeded

6、 RMB900bn in 2024,making it the largest market representing nearly one-quarter of global appliance revenues.The top 3 players-Haier,Midea,and Gree-together secure c.50%of domestic sales volume and see further room to scale.Rising urbanisation continues to drive household spending,while government tr