In 2008, listed companies of white electrical appliance reported revenue of Rmb157.46bn (+15.07% yoy, down by 39.4ppt yoy), net profit of Rmb5.246bn (+16.51% yoy, down by 85.9ppt yoy); in Q1 2009, listed companies of white electrical appliance sector reported revenue of Rmb32.73bn (+20.03% yoy, enlarged by 13.62ppt compared with that of Q4 2008), and net profit fell by 15.07% yoy, narrowed by 62ppt compared with that of Q4 2008.
We suggest investors paying attention to industrial bellwethers, especially GD Midea (000527) and Gree Electric Appliances Inc of Zhuhai (000651) whose performance might exceed the expectation.