Seasoned home appliance manufacturer Haier Smart Home has been among the top brands globally for the past decade, with a stronghold in refrigerators, laundry appliances, water heaters, and air conditioners. We attribute Haier’s industry-leading position to its effective multibrand strategies, strong product development, and broad distribution across online and offline channels. For domestic products, Haier positions its namesake brand for mass-market consumers while targeting the premium Casarte brand to wealthy households. As Casarte products have outperformed in sales growth versus Haier’s other brands in China, we expect high-end products to improve the company's overall revenue mix over the next few years. Also, we think the Chinese government's ongoing subsidies for home appliance trade-ins should boost Haier's domestic sales.