CITIC Securities: The impact of copper prices and exchange rates is rising again, the impact on the profitability of leading home appliance companies is generally controllable.

CITIC Securities' research report believes that in 2026, copper prices will face the dual test of moving upwards and RMB appreciation, but the overall impact on the profitability of leading household appliance companies is manageable. Past experience shows that raising prices is the most effective core means of resolving cost pressures. The support of domestic demand for national subsidies has been realized, and there is a consensus on price increases after New Year's Day. With strong terminal pricing power, mature cost transmission mechanisms, and a sound exchange rate risk management system, leading companies have the ability to navigate through cyclical fluctuations and maintain a stable profit model. Currently, the valuation of the household appliance sector is at a historical low, with a combination of stable growth and high dividend characteristics, highlighting its allocation value.