Hisense Home Appliances Group Co.,Ltd. (HKG: 00921) shares rose more than 6% in early trading. At the time of writing, the stock was up 6.52% to HK$26.14, with a turnover of HK$31.01 million.

Recent data for the 22nd week from AVC indicates online sales of color TVs, refrigerators, air conditioners, and washing machines changed year-on-year by -8%, 2%, 72%, and 17%, respectively. Offline sales for the same categories changed by -5%, 3%, 24%, and 5%, respectively.

Air conditioner sales were particularly strong this week, driven by abnormally high temperatures linked to the El Niño phenomenon and promotional activities for the mid-year shopping festival. Sales of refrigerators and washing machines also showed year-on-year improvement.

Analysis points out that the pressure on major home appliance sales in the first half of 2026 is primarily due to a high base effect from government subsidies in 2025, which pulled forward demand. However, this base pressure is expected to ease significantly starting from the third quarter.

The combination of anticipated high temperatures and low air conditioner inventory levels suggests a potential turning point in market conditions is approaching.

It is noted that leading home appliance manufacturers maintain stable profitability and strong cash flows. They possess both the capacity and the willingness to continue increasing dividend payouts, making them an attractive option for income-focused investment strategies.