Home industry: Growth accelerated look forward to the second half of the accelerated growth

The core assumptions of the color TV industry have not changed. We are optimistic about the color TV industry's core assumptions are: flat-screen TV demand for rapid growth, domestic enterprises to maintain high market share, panel prices tend to decline steadily.　　Although CRT decline and panel shortage of short-term growth constitutes a certain pressure, but these core assumptions have not changed radically, the color TV industry is still in a good trend. April Color TV Retail volume growth year-on-year. April, the overall retail volume of the city to achieve year-on-year growth (9.3%), and March year-on-year decline (-3.9%), of which LCD TV growth of 77% per cent, higher than Q1 growth (62%), three or four-tier market is still the main source of growth.　　At the same time, CRT demand is still falling fast (-57%), and the company's inventory and productivity are accelerating. Domestic enterprise market share continues to lead. April Domestic brand LCD TV market share of 72.4%, a slight decline in the chain, but still at a record high.　　of which Hisense reached 17.5%, is still at an all-time high. LCD panel price rebound is weak, out of stock situation eased. May 26/32/42-inch LCD panel prices were higher than last month, but in late May prices were clearly stable.　　At the same time, the panel is still out of stock, but it has eased compared to before. Increase 09 LCD TV shipments target. We are optimistic about the rapid growth of the rural flat market in the second half, while the CRT to inventory and to the production capacity will reduce sales throughout the year, we will 09 LCD TV sales growth rate from 60% to 80%, corresponding to domestic shipments from 21.39 million to 24.07 million, at the same time,　　The overall sales of color TV from 42.25 million units down to 41.08 million units, the 09 color TV industry domestic income growth rate from 9% to 3%, to maintain the domestic color TV company income growth percent forecast. Investment advice. We still adhere to the earlier point of view: Although the industry short-term performance has a certain pressure, but the color TV industry in the next 3 years, the trend of continuous improvement has not changed, "Old for the new" and home appliances to the countryside to promote the second half of the industry to grow more than expected to become possible. Maintain the industry "overweight" rating, continue to recommend Hisense Electrical appliances and deep Konka A: In the market environment of strong uncertainty, Hisense and Konka in the next 2-3 years of certainty growth and performance of upward elasticity to make it a good long-term investment varieties.