Huatai Securities: AI Empowerment and Product Innovation Will Become Important Growth Points for Tech Consumer Enterprises in 2026

Huatai Securities believes that by 2026, AI empowerment and product innovation will become key growth drivers for technology consumer companies. The sectors of smart home, cleaning appliances, smart hardware, AI glasses, NAS, and others will accelerate their iterations. Platform-based companies are expected to leverage ecological advantages to capture market share, and undervalued tech consumer companies may also see valuation reassessment opportunities.

Full Text Below

Huatai | Home Appliances: Observation at China AWE Expo - Embracing AI, Smart Living

Key Points

From March 12 to 15, the 2026 China Home Appliances and Consumer Electronics Expo (AWE2026) was held in Shanghai. As an annual industry indicator, this year’s theme was “AI Technology · Intelligent Future.” Through on-site visits and inspections of the exhibition halls, we found that Chinese home appliance companies participating this year no longer focus solely on product parameters like suction power and battery life, or simple product displays. Instead, they emphasize spatial expression and ecological integration. Additionally, AI has shifted from an “optional feature” to an essential component of industry innovation. Robots are moving beyond flashy demonstrations toward real-world scenarios that involve household services and labor. We believe this AWE is an important window into the application of AI and robotics in consumer markets. We are optimistic about investment opportunities in the tech consumer sector and valuation re-evaluation of home appliance companies driven by AI empowerment and product innovation in 2026.

Trend 1: From “Tools” to “Partners,” Embodied Intelligence Reshaping Home Appliance Positioning

Home appliances, represented by cleaning devices, are beginning to develop “brains” (large models) capable of understanding scenes and intentions; “senses” (visual perception, voice interaction) that perceive humans and environments; and “hands and feet” (robotic arms, bionic structures) that can proactively perform unstructured household tasks like folding clothes and cooking. We believe the next decade will be a golden era for large-scale commercialization of household robots. Stone Technology’s G-Rover made its first appearance in China at this expo, equipped with dual mechanical legs to clean stairs and traverse complex terrains, achieving a transition from 2D ground cleaning to 3D spatial cleaning. Ecovacs launched its first home service robot “Eight Realm” with OpenClaw, capable of recognizing and organizing scattered clutter, as well as autonomously dividing spaces and returning items to designated places.

Trend 2: Under AI Empowerment, Traditional Home Appliances Renew and Smart Hardware Accelerates Iteration

With advances in AI technology, the logic of traditional home appliances is changing—from passively accepting user commands to actively observing, understanding, and serving users. Huawei’s Mate TV allows users to cast content from their phones via gestures and, by recognizing family members’ faces and voices, delivers personalized content. Hisense’s RGB-MiniLED features AI panoramic World Cup functions, supporting pre-match previews, immersive viewing during matches, and post-game reviews. Additionally, AI development is driving interaction interfaces from traditional mobile apps to smart wearables like glasses, rings, and wristbands. Boss Appliances launched its first AI cooking glasses, and Thunderbird Innovation’s X3 Pro partnered with Amap to release the first local lifestyle app for smart glasses, “Thunderbird Smart Life,” which can directly recognize merchant ratings, customer spending, and feature tags.

Trend 3: From “Product Displays” to “Ecological Construction,” Building Intelligent Ecosystems

As technology matures, we believe future competition in the home appliance industry will no longer be based solely on parameters but on strategic resilience and ecological building capabilities, creating a smoother, more comprehensive user experience. For example, at this expo, Chasing Dream’s theme was “ALL IN DREAME,” featuring eight independent booths, extending from cleaning appliances to whole-house smart systems, smart travel, space and universe exploration, energy, and chip computing power. Haier launched AI Eye 2.0, integrating its capabilities into various household scenarios—helping refrigerators recognize food types and recommend storage zones, automatically adjusting preservation environments based on food characteristics. They also introduced household robots, including embodied cleaning robots and companion robots, covering user needs across all ages and scenarios, moving from “doing chores for others” to “unmanned chores.”

We reaffirm our positive outlook on investment opportunities in the tech consumer sector and the valuation re-evaluation of home appliance companies.

We believe that in 2026, AI empowerment and product innovation will be key growth drivers for tech consumer companies. Sectors such as smart home, cleaning appliances, smart hardware, AI glasses, and NAS will accelerate their iterations. Platform companies are expected to leverage ecological advantages to gain market share, and undervalued tech consumer firms may see valuation reassessment opportunities. We recommend: 1) Leading tech consumer companies with AI + growth; 2) Home appliance leaders with safety margins and attractive valuations.

Risk Tips: Risks of product/technology innovation underperformance; intensified competition; trade friction risks. This report includes information on unlisted companies or stocks not covered, based on objective public information, and does not constitute a recommendation or coverage opinion on these companies or stocks.

(Source: First Financial)