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2026-06-30 10:45:04 The rising frequency of extreme heat in Europe has become a structural driver for local air conditioner (AC) penetration to enter a multi-year upcycle, Citi published a research report stating. Currently, household AC penetration in Europe is only about 20%, way below the roughly 90% level in the US and Japan. Among China's home appliance sector, the broker maintained its top picks in the following order: MIDEA GROUP (00300.HK), HAIER SMARTHOME (06690.HK), and GREE APPLIANCES (000651.SZ). The broker foresaw widespread heatwaves in Europe to entail positive surprises to MIDEA GROUP, predicting its 2Q ToC HVAC sales in Europe to grow by more than 20% YoY. Meanwhile, the broker expected MIDEA GROUP's sales revenue in 2026 to record mid- to high-single-digit YoY growth, while cash returns to shareholders, including dividends and share buybacks, are expected to reach 100% of net profit. The broker gave MIDEA GROUP H shares a TP of HKD126.3 with a Buy rating. As for HAIER SMARTHOME, the broker said its European platform is sizeable, but its AC exposure is smaller than that of MIDEA GROUP. Management expected HAIER SMARTHOME's HVAC sales in Europe to record double-digit growth in 2026. The broker gave HAIER SMARTHOME H shares a TP of HKD28.9 with a Buy rating. ~ AASTOCKS Financial News Website: www.aastocks.com | |