>> Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analyst
under the FINRA rules.
Refer to "Other Important Disclosures" for information on certain BofA Securities entities that take
responsibility for the information herein in particular jurisdictions.
BofA Securities does and seeks to do business with issuers covered in its research
reports. As a result, investors should be aware that the firm may have a conflict of
interest that could affect the objectivity of this report. Investors should consider this
report as only a single factor in making their investment decision.
Refer to important disclosures on page 23 to 26. Analyst Certification on page 20. Price
Objective Basis/Risk on page 19. 12964336
Consumer Electronics - China
“China-maxxing” your gadgets
Industry Overview
The rise of China’s “New Electronics” brands
We have witnessed the rise of China’s “New Electronics” brands targeting niche and
emerging segments, such as power storage devices, smart cameras, UV printers, RVCs,
etc. These brands create new products to serve consumer pain points and expand the
electronics TAM. Chinese brands appear well positioned to grow globally, thanks to their
R&D strength, as well as cost advantages in terms of talent and supply chains. We prefer
Buy-rated Anker and Roborock over Neutral-rated Arashi Vision (see initiation note) as
the former are expected to deliver respectable earnings CAGR of 38%/34% (2025-27E)
at reasonable valuations of 20x/18x in 2026. We are Neutral on Arashi, as revenue
growth driven by product launches is offset by demanding valuations of 59x 2026E P/E
on margins uncertainty on competition/rising COGS.
AI + Hardware upgrades + Innovations = Quality products
We believe AI, hardware upgrades, and product innovations are the three key drivers for
new consumer electronics products. AI and hardware upgrades: These can enhance
the functionality of products. Improving functionality can drive consumer adoption.
Product innovations: Consumer electronics is not only about technology. A product
needs to strike a good balance among technology level, price, and consumer satisfaction.
Consumer feedback data facilitates product iterations which enhance customer
satisfaction. Separately, we see certain industry trends to stimulate consumer demand.
For example, power supply uncertainty drives demand for residential power storage
products, increasing outdoor activities drive demand for power bank/smart cameras, etc.
China brands seem well positioned to grow globally
We believe Chinese brands are well positioned to grow globally as i) consumer electronic
products have fewer cultural barriers to expand globally. Consumers prioritize
functionality and price the most. We also see increasing acceptance by foreign
consumers on China-branded products ii) China brands have good access to abundant
skilled labour and an efficient supply chain; and iii) the increasing shift to online sales
from offline allows easier penetration into overseas markets.
Key risks: Competition, policy, raw material costs
The consumer electronics industry faces intense competition. Brands need to
consistently roll out new products to drive market share. We believe operators tend to
prioritize growth over margins, which could result in volatile margins in the short term.
Another key risk is policy, including tariffs or product bans for security reasons. Finally,
raw material costs could also be a concern given rising chip and memory costs.
New market entrants intensify competition
Many newly founded companies have entered the fast‑growing “New Electronics” space.
They launch new products to compete with incumbents in the same categories globally,
resulting in intensifying competition. Please see Exhibit 23-24 for more details.
28 April 2026
Equity
China
Consumer Electronics
Ronald Leung, CFA >>
Research Analyst
Merrill Lynch (Hong Kong)
+852 3508 3728
@
Yoyo Pang >>
Research Analyst
Merrill Lynch (Hong Kong)
+852 3508 7607
@
Exhibit 1: Prefer Anker/Roborock
Summary of rating and PO
Rating PO
Upside
Potential
Anker Buy 140 14%
Roborock Buy 131 11%
Arashi Neutral 210 8%
Source: BofA Global Research estimates, Bloomberg
BofA GLOBAL RESEARCH
RVC: Robot Vacuum Cleaner
Arashi: Arashi Vision
TAM: Total addressable market
CE: Consumer Electronics
UV Printer: Ultra-Violet
Accessible version
Timestamp: 27 April 2026 04:30PM EDT
CR
扫码进研报会员群
········
mailto:@
mailto:@
2 Consumer Electronics - China | 28 April 2026
Prefer Anker and Roborock over Arashi
We have witnessed the rise of China’s “New Electronics” brands targeting niche and
emerging segments, such as power storage devices, smart cameras, UV printers, RVCs,
etc. These brands create new products to serve consumer pain points and expand the
electronics TAM. Chinese brands appear well positioned to grow globally, thanks to their
R&D strength, as well as cost advantages in terms of talent and supply chains. We prefer
Buy-rated Anker/Roborock over Neutral-rated Arashi Vision (see initiation note) as the
former are expected to deliver respectable earnings CAGR of 38%/16% (2025-27E) at
reasonable valuations of 19x/17x in 2026. We are Neutral on Arashi, as revenue growth
driven by product launches is offset by demanding valuations of 55x 2026E P/E on
margins uncertainty on competition/rising COGS.
Exhibit 2: We prefer Buy-rated Anker and Roborock over Arashi
Summary of ratings and investment theses
Stocks Stock code Rating Investment thesis
Anker 300866 Buy
Iran conflict underpinned stronger demand for its residential energy storage product. New
product launches and margins resiliency could underpin revenue growth re-acceleration and re-
rating
Roborock 688169 Buy
Earnings normalization in 2026E thanks to reducing loss from loss-making business and
reduced subsidies to drive sale
Arashi Vision 688775 Neutral
Product launches could underpin fast revenue growth but this is balanced by uncertainty in
margins given competition with DJI and rising raw material costs
Source: BofA Global Research estimates
BofA GLOBAL RESEARCH
Exhibit 3: Anker/Roborock expected to deliver respectable earnings CAGR of 38%/34% (2025-2027E) at reasonable valuations of 20x/18x in 2026
Consumer electronics valuation comps table
P/E PEG EPS growth EPS CAGR Dividend yield
Bloomberg
Ticker Currency
Share
price
Market cap
(USD mn) 2025E 2026E 2027E
2026E over
2025-2027E
EPS CAGR 2025E 2026E 2027E 25-27E 2025E 2026E 2027E
Charging and power storage
Hello Tech 301327 CH RMB 1,637 NA N/A -90% NA 63% N/A
UGREEN 301606 CH RMB 4,381 44% 43% 33% 38% % % %
Anker Innovations 300866 CH RMB 9,542 15% 46% 30% 38% % % %
Average -10% 633% 42% 38% % % %
Smart home appliances
Roborock 688169 CH RMB 4,377 -32% 54% 17% 34% % % %
Ecovacs 603486 CH RMB 5,222 74% 17% 16% 16% % % %
Shark Ninja SN US USD 16,274 21% 16% 16% 16% n/a n/a n/a
Average 23% 23% 14% 22% % % %
Smart audio and video
XGIMI 688696 CH RMB 923 87% 46% 23% 34% % % %
Arashi Vision 688775 CH RMB 11,284 -9% 47% 66% 57% % % %
Average 39% 54% 42% 42% % % %
Source: BofA Global Research estimates, Bloomberg
BofA GLOBAL RESEARCH
Analytical framework of consumer electronics stocks
We establish an analytical framework to assess the investment case on consumer
electronics stocks through different angles. We prefer Anker and Roborock over Arashi
as we believe they have better risk-reward given their growth profile, risks and
valuations.
CR
Consumer Electronics - China | 28 April 2026 3
Exhibit 4: Anker is our top pick as it has the best risk-reward and is trading at attractive valuations
Comparison of Roborock, Anker, and Arashi on different angles
Roborock Anker Arashi
Market growth potential
Roborock's market growth potential could be lowest
as the RVC market is relatively mature and the use
scenarios for smart home products could be limited
for home use only
Power bank market is relatively mature but power
storage could enjoy strong growth thanks to
increasing energy costs and power supply
uncertainty.
Smart camera should have the highest growth
potential thanks to increasing outdoor activities and
low consumer awareness of the product
Competition
The RVC market is highly competitive. Margins could
be quite compressed at times as operators launch
similar products. The bankruptcy of iRobot shows
that certain operators are not profitable and have
negative FCF. Yet, the exit of certain operators may
also indicate a bottoming of the profitability for the
industry
We believe Anker has a strong competitive edge over
its peers given its stronger branding for its key
products such as battery bank, power storage and
earbuds. This allows it to maintain a price premium
and margins
We believe Arashi could prioritize growth over margins
in the near-term during its head on competition with
DJI, which has a stronger brand image than it. DJI's
bigger size may also mean it has more flexibility to set
a low price to gain market share
Product cycles
There would be limited new product launches for
Roborock as the functionality upgrades for Robot
Vacuum Cleaners (RVC) appear to be limited
Anker will launch new iterations of its existing
products series and also new products to drive
growth. For example, the Solix E10 series power
storage products has received decent customer
responses in the US. We believe Anker will also
launch other new products such as UV printer and
earbuds products to drive growth
We believe Arashi's new handheld gimbal product
(Luna) could be a significant revenue growth driver for
Arashi. Handheld gimbal is a new product segment for
Arashi. It is entering this segment which has been
dominated by DJI's Pocket series
Raw material costs
The key raw materials for Roborock are cameras and
chips. We believe there could be some upside in cost
pressure but the impact is likely to be less than that
for Arashi
The key raw material for Anker is battery costs. There
is some upward pressure for battery costs due to
higher lithium costs. Yet, the upside magnitude
should be manageable at 10-20% level
We believe the impact of rising raw material costs,
particularly memory (both DRAM and NAND), would
have the highest impact on Arashi's margins. We
estimate memory accounts for single digit % of the
total COGS for Arashi and memory costs is estimated
to be up 3-4x YoY. As such, there could be LSD-MSD
impact on Arashi's GPM
Government policies
The Chinese government subsidies was a key driver
in sales growth for Roborock products in 2025. As
the impact of the subsidies fades, there could be
pressure in sales growth for Roborock products in
2026
Anker's power storage product could enjoy benefits
from government policies to support purchase of
power storage products, particularly in Europe. The
increasing tightening of power bank regulations for
air travel could also benefit strong brands like Anker
The US government has banned certain DJI products in
the US. Although there is not any ban on Arashi
products yet, there remains such as risks given the
similarity of DJI and Arashi products. China has
tightened the regulations of drones use by civilians
Valuations and growth
Roborock is trading at 18x 2026E P/E. This implies
PEG on 34% earnings CAGR (2025-2027E)
Anker is trading at 20x 2026E P/E. This implies
PEG on 38% earnings CAGR (2025-2027E)
Arashi is trading at 59x 2026E P/E. It implies PEG
on 57% earnings CAGR (2025-2027E)
Source: BofA Global Research estimates
BofA GLOBAL RESEARCH
CR
4 Consumer Electronics - China | 28 April 2026
Quality products to drive new demand
We believe AI, hardware upgrades, and product innovations are the three key drivers for
new consumer electronics products.
• AI and hardware upgrades: These can enhance the functionality of products.
Improving functionality can drive consumer adoption
• Product innovations: Consumer electronics is not only about technology. A
product needs to strike a good balance among technology level, price, and
consumer satisfaction. Consumer feedback data facilitates product iterations
which enhance customer satisfaction. Separately, we also see certain industry
trends to stimulate consumer demand for “New Electronics”. For example,
power supply uncertainty drives demand for residential power storage products,
increasing outdoor activities drive demand for power bank/smart cameras, etc.
In our view, new products have better functionality. This will allow them to be used in i)
more different scenarios (time), and ii) more spatial dimensions (space).
Exhibit 5: New electronics products expand the use in more different scenarios
Examples of new use-cases for consumer electronics products
Source: BofA Global Research estimates
BofA GLOBAL RESEARCH
• Actions camera with stabilization technique allow photo-taking during outdoor
activities such as skiing, cycling and running
• Better sounding capture algorithm allows removal of background noise for
headphones, allowing use in noisy scenarios
Time
Usage in more different
scenarios
• Panoramic camera and drones cameras enhance the image capturing from 2D
to 3D dimensions
• Robot vacuum cleaners incresae the dimensions of home clearning from 2D to
3D
Space
Functionality expansion in
spatial dimensions
CR
Consumer Electronics - China | 28 April 2026 5
AI
New AI techniques/algorithms can enhance the functionality of products. For example,
image-merging techniques enable 360-degree photo shooting.
Exhibit 6: AI development enhances the functionality of consumer electronics
Summary of AI use in consumer electronics products
AI/Algorithms Descriptions
Images stitching techniques
Enable seamless merge of images which is critical for taking
panoramic pictures
Image stabilization technique
Enable photo taking during unstable circumstances such as sporting
activities
Active Noise Cancelling
an algorithm using multiple microphones to analyze ambient sound
and generate precise anti-noise in real time
Adaptive Snore-Masking Technology
an algorithmic system designed to reduce or mask snoring noise
through sound processing or noise-masking techniques
SLAM (Simultaneous Localization and Mapping)
Enable robot vacuum cleaner to identify room geometry and updates
map continuously to avoid drift
AI object detection and recognition
Enable the robot vacuum cleaner to detect small obstacles—such as
power cables, socks, shoes, pet bowls, and pet waste—and
automatically avoid them
Health Monitoring & Early Disease Detection
Enable smart rings to detect anomalies or early health risks, by
continuously tracking and analyzing biometrics such as heart rate,
sleep cycles and movement.
Source: BofA Global Research estimates
BofA GLOBAL RESEARCH
Hardware upgrades
The enhancement of hardware with declining unit costs can enhance the functionality of
products. For example, the new iterations of products have similar retail price but
improving product specifications.
Exhibit 7: Hardware upgrades enhance the functionality of consumer electronics
Summary of hardware upgrades in consumer electronics products
Hardware upgrades Descriptions Products
Gallium Nitride (GaN)
power components
The shift from silicon to GaN semiconductors
allows chargers to run cooler, switch faster, and
deliver higher wattage in much smaller sizes.
Innovation enabled ultra-compact laptop/phone
chargers, multi-port fast-charging hubs, and
higher-wattage USB-C adapters for travel.
Smaller and faster chargers
High-density batteries
It increases energy density, and enables thinner
devices and longer battery life.
Ultra-thin smartphones, longer-lasting
earbuds and wearables and foldable
devices with all-day battery life.
Advanced CMOS image
sensors
Combine refined semiconductor fabrication with
enhanced pixel architectures and enable superior
imaging performance.
AI-optimized chipsets
(SoCs)
Processors with dedicated neural processing units
(NPUs) accelerate on-device AI tasks such as image
recognition, language processing and real-time
decision-making. Without relying heavily on cloud
computing.
Miniaturized cameras &
imaging sensors
The sensors integrate advanced optics and
semiconductor innovation to capture high-quality
visuals within extremely compact form factors.
Cooling Hardware (Vapor
Chambers, Graphene
Layers)
Efficiently spread and dissipate heat through
high-conductivity materials and phase-change
mechanisms. These solutions enable thinner
device designs while maintaining thermal stability,
ensuring sustained performance under heavy
computational loads.
DJI OSMO 360
Source: BofA Global Research estimates
BofA GLOBAL RESEARCH
CR
6 Consumer Electronics - China | 28 April 2026
Product innovations
Consumer electronics products need to strike a balance among hardware specifications,
price, and consumer satisfactions. Improving consumer feedback data enables
continuous product iteration to enhance customer satisfaction.
Exhibit 8: Product innovations enhance customer experiences
Summary of product innovations
Products innovations Descriptions
All-in-one docks of robot vacuum cleaner
Docking stations have evolved from simple charging cradles
into multi-function automated cleaning hubs (charging, dust
emptying, mop washing and water refilling). The newest
innovations focus on full maintenance automation, AI-assisted
hygiene, and appliance-level performance.
Roller mopping technology
A new mopping system used in advanced robot vacuum
cleaners. Unlike traditional flat cloth pads or dual spinning
mops, a roller mop uses a long rotating cylindrical brush that
continuously scrubs the floor while simultaneously cleaning
itself. This results in deeper stain removal, more consistent
moisture control, and significantly reduced
cross-contamination.
RVC with robotic and track-based stair-climbing
mechanisms
Navigate multi-level homes while manipulating objects,
moving obstacles, and performing complex household tasks
beyond traditional floor cleaning.
Wireless open-ear headphones
Open-ear headphones sit outside the ear canal and use air-
conduction designs, offering a more natural and open
listening experiences and improved comfort, better situational
awareness and enhanced stability.
Camera case for actions camera
Actions camera could be too small to hold on for taking
pictures. A camera case fitting the palm size of the users make
it easier to hold and enhance users experiences
Source: BofA Global Research estimates
BofA GLOBAL RESEARCH
CR
Consumer Electronics - China | 28 April 2026 7
Industry demand drivers for new
electronics products
We see several structural trends which could underpin the demand for niche electronic
products. These structural trends include reduced energy security due to geo-political
risks, increasing outdoor activities participation, and increasing use of social media for
sharing photos/videos.
Energy security
Recent geopolitical conflicts (Russia-Ukraine war and Iran war) and extreme weather
(snowstorm in the US) have added uncertainty to utility prices and energy stability for
individual households. As such, we expect power storage and power-generation products
(., balcony PV) to see strong demand. These products could reduce the energy bills
and enhance the energy stability for individual households.
Home safety
Algorithm and hardware upgrades are driving more intelligent home security systems.
New products include safety cameras, alarms, and locks. In our view, penetration of such
products remains low in the developed countries.
Outdoor activities
Participants of outdoor activities such as cycling and skiing are a key target customer
group for smart camera products. The rapid growth of outdoor activities participation
will be a growth driver for panoramic and action cameras.
In the US, participation in outdoor sports saw a 3% CAGR from 146mn in 2017 to
181mn in 2024. The overall participation ratio increased from 49% in 2017 to 59% in
2024. We believe the ratio could increase further, thanks to increased health and leisure
awareness.
In China, there is no data on outdoor sports participations. However, we believe there is
increasing popularity of various outdoor activities given increasing participation in
marathons, cycling, and skiing. According to the annual Ski White Paper, ski traffic saw a
9% CAGR from 10mn in 2014 to 26mn in 2025.
Exhibit 9: US outdoor participation ratio increased from 49% in 2017
to 59% in 2024
US outdoor participation ratios
Source: Outdoor Industry Association
BofA GLOBAL RESEARCH
Exhibit 10: China’s ski traffic saw a 9% CAGR from 10mn in 2014 to
26mn in 2024
China ski traffic (person times)
Source: China Ski industry white paper
BofA GLOBAL RESEARCH
%
%
%
%
%
%
%
%
120
130
140
150
160
170
180
190
2017 2018 2019 2020 2021 2022 2023 2024
-60%
-40%
-20%
0%
20%
40%
60%
0
5
10
15
20
25
30
CR
8 Consumer Electronics - China | 28 April 2026
Increasing use of social media for sharing photos/videos
The proliferation of social media use for personal or commercial (marketing) purposes
will underpin structural demand for better recording devices. Social media is not only for
individual use but also for commercial use, particularly marketing.
The decent growth of Family DAP of Meta indicates increasing demand for social media
use in sharing and marketing purposes. (Meta defines a daily active person as a
registered and logged-in user of Facebook, Instagram, Messenger, and/or Whatsapp who
visited at least one of these Family products through a mobile device application or
using a web or mobile browser on a given day.)
Exhibit 11: Meta’s family DAP saw a 9% CAGR over 2018-24
Meta’s family Daily Active People (DAP) (in billions, daily average over month ended)
Source: Company data
BofA GLOBAL RESEARCH
0%
4%
8%
12%
16%
2018 2019 2020 2021 2022 2023 2024
CR
Consumer Electronics - China | 28 April 2026 9
China brands seem well positioned to
grow in global market
We believe Chinese brands are well positioned to grow globally as i) consumer electronic
products have fewer cultural barriers to expand globally. Consumers prioritize
functionality and price the most. We also see increasing acceptance by foreign
consumers on China-branded products ii) China brands have good access to abundant
skilled labour and an efficient supply chain; and iii) the increasing shift to online sales
from offline allows easier penetration into overseas market.
Low cultural barriers for consumer electronics products
In our view, cultural drivers are important in shaping consumer behaviour, which in turn
drive demand for consumer products. One of the key obstacles for consumer brands to
expand overseas is the cultural barrier. It is not easy for consumer brands to adapt to the
cultural requirements of a new country so as to facilitate penetration. For example, it is
not easy for baijiu and gold/jewelry brands in China to expand overseas because foreign
consumers do not value these products as much the Chinese due to cultural differences.
However, such barriers are likely to be lower for consumer electronics products, as
consumers value functionality the most. As long as the product has good value for
money, it would be easier for consumer electronics brands to grow globally.
Access to abundant skilled labor and low-cost supply chain
We believe China’s access to a vast pool of skilled labour at low cost and an efficient
supply chain are key competitive edges for China brands. According to a Bloomberg
Intelligence article, China is enjoying “engineer dividends” as official data shows that the
number of engineers in China increased from to from 2000 to 2020. We
believe China’s average salary of the engineer is likely to be lower than other developed
countries.
China also has a strong supply chain in the consumer electronics space. This is due to its
historical role as a key supplier for global consumer electronics brands. Given this
foundation, China companies could gradually move up the value curve and become
brands, we believe.
Exhibit 12: Major partner-OEMs are Chinese companies
Arashi’s major outsourced OEMs (% of processing fees paid)
English name Chinese name %
Ability Technology 东莞能率科技有限公司 %
Luxshare Precision 立讯精密工业股份有限公司 %
Dongguan Amperex 东莞新能源科技有限公司 %
Shenzhen Xinlite 深圳鑫利特电路有限公司 %
Dongguan Jingguanzhuo 东莞市京冠卓电子有限公司 %
Source: Company data
BofA GLOBAL RESEARCH
Exhibit 13: Major raw material suppliers are Taiwan/Chinese companies
Arashi’s major raw materials suppliers (% of raw materials procured)
English name Chinese name
Raw materials
procured %
WT Micro electronics 文晔科技股份有限公司 Integrated Circuits (IC) %
Guangdong Hongjin Optoelectronics 广东弘景光电科技股份有限公司 Camera Lens Module %
Yuyao Sunny Intelligent Optical 余姚舜宇智能光学技术有限公司 Camera Lens Module %
Dongguan Jingxi Optical 东莞精熙光机有限公司 Accessories %
Transcend Information 诠鼎科技股份有限公司 Integrated Circuits (IC) %
Source: Company data
BofA GLOBAL RESEARCH
CR
10 Consumer Electronics - China | 28 April 2026
Exhibit 14: Major raw materials suppliers are companies headquartered in China
Anker’s major suppliers
Major suppliers Description %
Supplier A An electronics company headquartered in Hunan %
Supplier G A battery technology company headquartered in Guangdong %
Supplier H A manufacturer that develops batteries and headquartered in Guangdong %
Supplier E An industrial development company based in Guangdong %
Supplier I A developer of fiber-optic communication devices headquartered in Guangdong %
Source: Company data
BofA GLOBAL RESEARCH
Exhibit 15: We believe the salary of R&D employee is low compared to developed countries
Arashi’s R&D staff and average salary
1H24 1H25
R&D staff 1,031 1,836
R&D staff total salary 239 441
Average salary (RMB) 231,756 240,392
Average salary (USD) 33,108 34,342
Source: Company data
BofA GLOBAL RESEARCH
Online channels allow Chinese brands to penetrate overseas market more easily
The increasing shift to online sales allows the Chinese brands to compete on an equal
footing with foreign brands to penetrate into overseas markets. This is important as this
could allow brands to sell their products and generate cash flow rapidly post-launch.
Crowdfunding channel: Chinese brands also use the crowdfunding channel as a testing
ground for their new products. This allows the brands to better understand consumer
feedback before the official launch. For example, Anker had a successful crowdfunding
for its 3D-texture UV Printer in mid 2025. The eufyMake UV Printer, which is the first
personal 3D-texture UV printer, raised US$46mn on Kickstarter. This set the
crowdfunding record in the platform’s history. Anker began official shipments of the
product in 1Q26.
CR
本报告来源于三个皮匠报告站（）,由用户Id:1228580下载,文档Id:1227285,下载日期:2026-05-06
Consumer Electronics - China | 28 April 2026 11
Key risk #1: Competition
Highly competitive industry
The consumer electronics market is a highly competitive industry. Operators need to
consistently roll out new products with better technology and at lower prices to drive
sales. While this could enhance the market size and revenue over time, this could also
hurt earnings due to margin compression and continuous R&D investment. As such, the
earnings cycle of consumer electronics companies is highly volatile with low visibility.
Exhibit 16: Anker revenue saw a 29% CAGR over 2019-25. Product
cycles add to revenue growth volatility
Anker’s revenue (RMB mn) and revenue growth
Source: BofA Global Research estimates, company report
BofA GLOBAL RESEARCH
Exhibit 17: Higher earnings growth volatility
Anker’s core profit (RMB mn) and core profit growth
Source: BofA Global Research estimates, company report
BofA GLOBAL RESEARCH
Exhibit 18: Margins volatility in the past 10 years
Anker’s core profit margins
Source: BofA Global Research estimates, company report
BofA GLOBAL RESEARCH
0%
10%
20%
30%
40%
50%
60%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
-40%
-20%
0%
20%
40%
60%
80%
100%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
%
%
%
%
%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
CR
12 Consumer Electronics - China | 28 April 2026
Exhibit 19: Arashi saw strong revenue CAGR of 69% in 2022-25
Arashi’s revenue and revenue growth
Source: BofA Global Research estimates, company report
BofA GLOBAL RESEARCH
Exhibit 20: There was higher earnings volatility due to competition and
raw material cost pressure
Arashi’s core profit and core profit growth
Source: BofA Global Research estimates, company report
BofA GLOBAL RESEARCH
Exhibit 21: Arashi’s profit margins declined in 2024 and 2025 due to
competition and raw material cost pressure
Arashi’s core profit margins
Source: BofA Global Research estimates, company report
BofA GLOBAL RESEARCH
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
5,000
10,000
15,000
20,000
25,000
2022 2023 2024 2025 2026E 2027E -20%
0%
20%
40%
60%
80%
100%
120%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2022 2023 2024 2025 2026E 2027E
%
%
%
%
2022 2023 2024 2025 2026E 2027E
CR
Consumer Electronics - China | 28 April 2026 13
Exhibit 22: Volatile earnings due to product cycle timing, competition, and R&D investment
Product and earnings cycle relationship
Source: BofA Global Research estimates
BofA GLOBAL RESEARCH
Launch new
products
Successful
products result
in similar
product
launches by
competitors
More
competition
could hurt sales
volumes and
margins for each
operator
Increase in R&D
and marketing
for next product
launch
CR
14 Consumer Electronics - China | 28 April 2026
Competitive edges of sector leaders
Despite the highly competitive nature of the sector, we believe sector leaders still have
an edge over smaller/new firms in capturing market shares due to better resources in
R&D and access to technological know-how. This allows them to have higher chance of
launching successful products, creating a virtuous cycle.
Exhibit 23: Incumbents have an edge in new product development, thanks to financial and
technological edges
Relationships between products and financial/technological capabilities
Source: BofA Global Research estimates
BofA GLOBAL RESEARCH
Successful product
launches
Profits and cash flow
generation
Accumulation of patents,
consumer insights and
technological knowhow
R&D and
marketing
reinvestment
Leverageon
technological
knowhow
CR
Consumer Electronics - China | 28 April 2026 15
Long-term monetization potential of brands
There are investor concerns that consumer electronics companies may not create value
over time, as fierce competition and R&D investment largely offset the profits earned
from products over time. In our view, brands could have better monetization capabilities
over time, thanks to stronger branding, subscription fees, and accumulation of
patents/copyrights. Yet, they have to consistently launch successful new products to
develop such monetization potential.
Branding
Brand image can improve over time if a company can continuously deliver products that
beat consumer expectations. Consumers will have lower cost of decision making or be
willing to pay a higher pricing premium for similar products. This allows strong brands to
charge higher pricing with a higher margin.
Subscriptions/software usage fees
Brands can also launch software or subscriptions to enhance user experiences. This can
increase the switching cost of consumers from one brand to another. This could create
new revenue streams for a brand. This is similar to the services revenue earned by Apple.
Accumulation of patents and copyrights
The accumulation of patents and copyrights over time could further strengthen the
competitive edge of a brand. Over time, it will become more difficult for new
brands/companies to compete with the incumbents, which have accumulated strong
technological know-how.
CR
16 Consumer Electronics - China | 28 April 2026
Key risk #2: Government policy
Tariffs
China’s consumer electronics products are largely produced in China and SEA. There is
no disclosure on what % of US-bound is produced in China. The companies are gradually
shifting their production capacity from China to SEA. However, any change in tariff
policies could add to the cost pressure and margin uncertainties for the companies.
Consumer data/privacy
Consumer electronics products could capture consumer data. However, this could also
raise concerns about consumer data leakages or security concerns. Such concerns could
result in the ban of such apps by governments.
Sanctions/import restrictions
Some of the electronics companies could be considered as a threat to national security
by foreign governments. For example, DJI, a key competitor of Arashi, is designated as a
Chinese Military Company by the US’s Department of War. It was also added to the
updated covered lists by the Federal Communications Commissions (FCC) in December
2025. This would mean that DJI cannot sell new models of drone in the US without
necessary FCC approvals.
User regulations
China has been tightening rules for drones’ users for recreational and civilian use. Since
January, officials have raised the penalties for unauthorized flying of drones to include
possible jail time. Starting in May, all drones must be registered with the owners’ real
names, requiring users to link their flight equipment to their official identification or
phone number. Permits will be required at least a day in advance in restricted zones.
Beijing has even adopted a near-total ban on drones. Under the new rules all drones or
their components may not be sold, rented or brought into Beijing starting from May.
Key risk #3: Raw material costs
Consumer electronics products’ major raw materials costs are electronic components,
including chips, memory, sensors, battery and metals. A rapid rise in memory costs could
add to the total cost pressure or sourcing difficulties for consumer electronics
companies. The companies under our coverage do not disclose the breakdown of their
key raw materials. As such, it is not easy to estimate the financial impact.
Costs of memory, including both DRAM and NAND, have risen significantly since 2H25.
This could add cost pressure particularly to camera brands like Arashi. We estimate
memory costs accounted for single-digit% for Arashi before the price hike, which could
rise to teens% level after the price hike.
CR
Consumer Electronics - China | 28 April 2026 17
New market entrants intensify
competition
Many newly founded Chinese companies have entered the fast‑growing “New
Electronics” space. They launch products to compete with incumbents in the same
categories globally, resulting in intensifying competition. Please see Exhibit 23-24 for
more details on both private companies and non-covered listed companies.
Exhibit 24: Many up and coming consumer electronics brands in China
Major private companies in the consumer electronics industry
Company
Name
Year
Founded Industry Core Business & Products Key Sales Regions Revenue / Profit (RMB) Funding / IPO Status
Private
DJI 2006
Multi-category
Smart
Hardware
Consumer drones (Mavic, Phantom
series), handheld gimbals, action
cameras, panoramic cameras,
educational robots (RoboMaster).
Global: High proportion of
overseas revenue, selling
in over 100 countries.
Revenue: ~¥80 bn (2025); Profit:
~¥20 bn (2025)
DJI has not raised any equity funding since
its 2018 strategic round; The company
publicly confirmed it has no financing or
IPO plans in 2025
EcoFlow 2017
Portable Power
Solutions
Outdoor power, solar panels, home
storage; fast-charging tech.
Global: 100+ countries;
key markets NA, Europe,
Japan.
Revenue: ~>7bn (2024)
Private. Multiple rounds (Sequoia China,
Hillhouse). Valuation >RMB14bn. BBG
reported it's seeking US listing now.
Bambu Lab 2020 3D Printing
High-speed, multi-color desktop 3D
printers (X1, P1, A1 series).
Global: Primarily overseas
markets, covering North
America, Europe, Japan.
Revenue: ~¥– bn (2024);
Profit: ~¥2bn (2024). 29%
market share (2024)
Private. Hurun ranking suggests the
company’s valuation could reach Rmb40bn
(2025).
Creality 2014
Consumer 3D
Printing:
FDM/resin printers, scanners, laser
engravers (Ender, K series).
Global: Europe, US, Japan
major markets.
Revenue: (2024); Profit:
(2024). Market share
~% of global consumer 3D
printer in terms of GMV (2024)
Pre-IPO. Filed for Hong Kong IPO.
Mammotion 2016
Smart Robotic
Lawn Mowers
Boundary-free, all-wheel-drive tech
(LUBA 2 AWD, YUKA mini).
Global: 30+ countries incl.
North America & Europe;
sold in Walmart, Home
Depot.
Status: Its LUBA 2 product
achieved monthly sales >$4M
after launch in 2025; Amazon
Best Seller in Germany, France,
US.
Private. It was developed by AgileX Robotics.
It has completed A-series financing
Dreame
Technology
2017
Smart Cleaning
Appliances:
Robot vacuums, cordless vacuums,
scrubbers, high-speed hair dryers;
core high-speed motor tech.
Global: ~70% overseas
revenue; sold in 100+
countries.
Revenue: ¥30-40bn (2025)
Private. Multiple rounds (Xiaomi, Shunwei,
Sequoia China). Valuation ~RMB20bn
(2024).
Shokz 2004
Bone
Conduction
Headphones
Open-ear models for sport/commute
(OpenRun, OpenFit).
Global: >70% overseas
sales; 60+ countries incl.
NA, Europe, Japan, Korea.
Revenue: US$1bn sales in 2024;
Market share ~70% global bone
conduction headphones
Private. Backed by Sequoia China.
Restructuring for potential overseas IPO.
Shenzhen
Poweroak
Newener
2013
Portable Power
Solutions
Portable energy storage products
under BLUETTI brand
Americas: 52%, Europe:
29%, Asia: 9%, China: 2%
Revenue: (9M 2025) Pre-IPO. Filed for Hong Kong IPO.
Source: BofA Global Research estimates, company report, various news sources (Sina, Tech in Asia, etc)
BofA GLOBAL RESEARCH
CR
18 Consumer Electronics - China | 28 April 2026
Exhibit 25: There are many up and coming new consumer electronics brands in China
Major listed companies (non-covered) in the consumer electronics segment
Company
Name
Year
Founded Industry Core Business & Products Key Sales Regions Revenue / Profit (RMB) Funding / IPO Status
Ninebot
(Segway-
Ninebot)
2012
Smart Short-distance
Mobility & Service
Robots
e-scooters, e-bikes, ATVs, robotic
mowers, shared mobility.
Global: ~% overseas
revenue; >9,700 stores in
China.
Revenue: (2025);
Profit: (Jan–2025)
Public. Listed on STAR Market
(689009) since Oct 2020.
Market Cap:
Huami (Zepp
Health)
2013 Smart Wearables:
Watches, fitness bands, sports
earbuds; health monitoring.
Global: 90+ countries; ~%
overseas revenue.
Revenue: (2025);
Profit: 175mn (2025), >50%
YoY.
Public. Listed on STAR Market
(688009) since Oct 2020.
Market cap:
XGIMI 2013 Smart Projectors
Home projectors, laser TVs, portable
models (H, RS series).
Primary: China; expanding to
Japan & Europe.
Revenue: (2025);
Profit: 143mn (Jan–2025).
Public. Listed on STAR Market
(688696) since 2021. Market
cap:
UGREEN Group 2012
Full-range Digital
Accessories:
Cables/adapters, GaN chargers,
audio/video products, NAS private
cloud devices.
Global: ~60% overseas; sold via
Amazon, JD, Tmall.
Revenue: (2025);
Profit: 705mn (2025)
Public. Listed on ChiNext
(301606) since July 2024.
Market cap
Source: BofA Global Research estimates, company report
BofA GLOBAL RESEARCH
CR
Consumer Electronics - China | 28 April 2026 19
Stocks mentioned
Prices and ratings for stocks mentioned in this report
BofA Ticker Bloomberg ticker Company name Price Rating
XAIFF 300866 CH Anker Innovations CNY C-1-7
XSNSF 688775 CH Arashi Vision CNY C-2-9
XBTLF 688169 CH Roborock Technology CNY C-1-7
Source: BofA Global Research
Investment Rationale
Arashi Vision
We have a Neutral rating on Arashi Vision. We believe its fast revenue growth driven by
new products and rising penetration is balanced by rich valuations and margins
uncertainty. The margins uncertainty is due to intense competitions with DJI and rising
raw material costs.
Price objective basis & risk
Anker Innovations (XAIFF)
Our PO of RMB140 is based on 23x FY26E P/E, in line with its average level since 2022.
We apply P/E relative valuation methodology to derive the PO as Anker is a stable, asset-
light, profitable consumer electronics company with clear comparable peers.
Anker re-rated to 20-25x during 2023-24, which we believe should be the new-normal
level for company. To factor in the current soft macro environment outlook, we use the
lower end of the range (20x) as our target multiple. Also, this is the average level of
peers' one-year forward P/E.
Risks: tariff increase, raw material costs surge, stagflation, FX volatility, US
investigations, and slowing R&D.
Arashi Vision (XSNSF)
Our PO of RMB210 is based on a 50/50 blend of DCF (RMB223) and P/E (RMB231)
based methodology. Our DCF-based valuation of RMB206 is based on 11% WACC, 3%
risk free rate and 3% terminal growth rate. Our PE based valuation of RMB215 is based
on 50x P/E on average if 2026-2027E, This implies PEG on 57% earnings CAGR
(2025-2027E). The PEG is in-line with its major consumer electronic peers.
Upside risks: Better than expected response from new product launches, positive
demand drivers such as rising outdoor activities, decline in raw material costs, reduced
competitions
Downside risks: Delay in product launches, weak customers satisfaction on new
products, rising raw material costs, intense competitions, unfavorable government
policies to control imports and sales of products, patents risks
Roborock Technology (XBTLF)
Our PO of RMB131 is derived from 20x P/E FY26E EPS, which is around its historical
average one-year forward P/E since 2020. In our view, the P/E multiple of 20x looks
justified as Roborock sees strong topline growth momentum, but the visibility of margin
inflection point remains low in the near term.
Upside risks: competition easing, US tariff gets lower in Vietnam and China, better-than-
expected products launch.
CR
20 Consumer Electronics - China | 28 April 2026
Downside risks: competition intensifying, tariff disputes escalation, macro economy
slowdown.
Analyst Certification
We, Ronald Leung, CFA and Yoyo Pang, hereby certify that the views each of us has
expressed in this research report accurately reflect each of our respective personal views
about the subject securities and issuers. We also certify that no part of our respective
compensation was, is, or will be, directly or indirectly, related to the specific
recommendations or view expressed in this research report.
CR
Consumer Electronics - China | 28 April 2026 21
APR - Consumer Coverage Cluster
Investment rating Company BofA Ticker Bloomberg symbol Analyst
BUY
ABC-MART AMKYF 2670 JP Arashi Nishizawa
AmorePacific Corp AMRPF 090430 KS Ahyung Cho
and ST HD PNMOF 2685 JP Arashi Nishizawa
Anker Innovations XAIFF 300866 CH Yoyo Pang
Anta Sports ANPDF 2020 HK Lucy Yu
APR XLTDF 278470 KS Ahyung Cho
Asics ASCCF 7936 JP Arashi Nishizawa
BGF Retail XWAHF 282330 KS Ahyung Cho
Bosideng BSDGF 3998 HK Lucy Yu
BUD APAC BDWBF 1876 HK Chen Luo, CFA
Busy Ming Group XYBMF 1768 HK Jack Chen
Chacha Food XCCLF 002557 CH Jack Chen
China Pet Foods XDEEF 002891 CH Alice Ma
China Resources Beer (Holdings) Co Ltd CRHKF 291 HK Chen Luo, CFA
Coca-Cola Bottlers Japan Holdings CCOJF 2579 JP Manabu Sumoge
Cosmax XCRSF 192820 KS Zoe (Jung-ae) Chun
Cosmos Pharmaceutical CSMYF 3349 JP Arashi Nishizawa
Dabur India DBUIF DABUR IN Aditya Mathur
DPC Dash Ltd DPCDF 1405 HK Lucy Yu
Eastroc XEBSF 605499 CH Jack Chen
Eastroc XEBDF 9980 HK Jack Chen
Fast Retailing FRCOF 9983 JP Arashi Nishizawa
Fast Retailing FRCOY FRCOY US Arashi Nishizawa
Feng Tay FTGYF 9910 TT Ronald Leung, CFA
Godrej Consumer Products XGOCF GCPL IN Aditya Mathur
Goldwin GWNCF 8111 JP Arashi Nishizawa
Guming XGHXF 1364 HK Lucy Yu
Haier Smart Home Co Ltd TTHEF 600690 CH Lucy Yu
Haier Smart Home Co Ltd HRSHF 6690 HK Lucy Yu
Henan Shuanghui Investment & Dev HSUIF 000895 CH Chen Luo, CFA
JINS HOLDINGS JNDOF 3046 JP Arashi Nishizawa
Jubilant FoodWorks XJUBF JUBI IN Aditya Mathur
Kewpie KWPCF 2809 JP Manabu Sumoge
Kikkoman KIKOF 2801 JP Manabu Sumoge
Kirin Holdings KNBWF 2503 JP Manabu Sumoge
Kobe Bussan KOBNF 3038 JP Arashi Nishizawa
Kolmar Korea XKKPF 161890 KS Zoe (Jung-ae) Chun
KT&G KTCIF 033780 KS Ahyung Cho
Kweichow Moutai Co. Ltd. XHJBF 600519 CH Chen Luo, CFA
Leela Palaces Hotels & Resorts XSBLF THELEELA IN Aditya Mathur
Li Ning Co Ltd LNNGF 2331 HK Lucy Yu
Ligao Foods XLFLF 300973 CH Jack Chen
Lion LIOPF 4912 JP Kentaro Hosoda
Mao Geping XMGOF 1318 HK Lucy Yu
Marico MAIOF MRCO IN Aditya Mathur
MatsukiyoCocokara & Co MSMKF 3088 JP Arashi Nishizawa
Mengniu Dairy CIADF 2319 HK Chen Luo, CFA
Midea Group MGCOF 300 HK Chen Luo, CFA
Midea Group Co Ltd XMGEF 000333 CH Chen Luo, CFA
New Oriental Education & Technology EDU EDU US Lucy Yu
New Oriental Education & Technology NWOEF 9901 HK Lucy Yu
Nien Made Enterprise XNRBF 8464 TT Yoyo Pang
Nitori Holdings NCLTF 9843 JP Arashi Nishizawa
Nongfu Spring NNFSF 9633 HK Jack Chen
PAL Group Holdings PALZF 2726 JP Arashi Nishizawa
Pan Pacific International HD DQJCF 7532 JP Arashi Nishizawa
Pigeon PIGEF 7956 JP Kentaro Hosoda
Roborock Technology XBTLF 688169 CH Yoyo Pang
ROHTO RPHCF 4527 JP Kentaro Hosoda
Ryohin Keikaku RYKKF 7453 JP Arashi Nishizawa
Ryohin Keikaku RYKKY RYKKY US Arashi Nishizawa
Samsonite International SMSOF 1910 HK Jack Chen
Seven & i Holdings SVNDF 3382 JP Arashi Nishizawa
Shanxi Fen Wine XCKZF 600809 CH Chen Luo, CFA
CR
22 Consumer Electronics - China | 28 April 2026
APR - Consumer Coverage Cluster
Investment rating Company BofA Ticker Bloomberg symbol Analyst
Shenzhou International SZHIF 2313 HK Chen Luo, CFA
Shinsegae SDKLF 004170 KS Ahyung Cho
Sugi Holdings SGIPF 7649 JP Arashi Nishizawa
Sundrug SDGCF 9989 JP Arashi Nishizawa
Suofeiya Home Collection Co Ltd XGUZF 002572 CH Yoyo Pang
TAL TAL TAL US Lucy Yu
Titan Company XNXAF TTAN IN Aditya Mathur
Trial Holdings XIKRF 141A JP Arashi Nishizawa
Tsingtao Brewery TSGTF 168 HK Chen Luo, CFA
Tsingtao Brewery XTSOF 600600 CH Chen Luo, CFA
UNITED ARROWS UARWF 7606 JP Arashi Nishizawa
United Spirits XUNIF UNITDSPR IN Aditya Mathur
Varun Beverages XMKDF VBL IN Aditya Mathur
Wanchen Group XFWXF 300972 CH Jack Chen
WH Group Limited WHGRF 288 HK Chen Luo, CFA
Yankershop Food XYNKF 002847 CH Jack Chen
Yili Industrial Group XIDRF 600887 CH Chen Luo, CFA
Yum China YUMC YUMC US Chen Luo, CFA
Yum China XYUMF 9987 HK Chen Luo, CFA
NEUTRAL
Ajinomoto AJINF 2802 JP Manabu Sumoge
Asahi Group Holdings ASBRF 2502 JP Manabu Sumoge
Asian Paints XSAFF APNT IN Aditya Mathur
Avenue Supermarts XWCVF DMART IN Aditya Mathur
Britannia Industries XJNDF BRIT IN Aditya Mathur
China Feihe CHFLF 6186 HK Jack Chen
China Resources Beverage XCRBF 2460 HK Jack Chen
Chow Tai Fook Jewellery CJEWF 1929 HK Ronald Leung, CFA
E-Mart EMRTF 139480 KS Ahyung Cho
Foshan Haitian Flavouring & Food Co Ltd XCMJF 603288 CH Jack Chen
Gree Electric Appliances ZHUHF 000651 CH Chen Luo, CFA
GS Retail XGLTF 007070 KS Ahyung Cho
Haidilao International Holding Ltd. HDALF 6862 HK Lucy Yu
Hengan Intl HEGIF 1044 HK Yoyo Pang
Hindustan Unilever HINLF HUVR IN Aditya Mathur
Hisense Home Appliance XMBQF 000921 CH Lucy Yu
Hisense Home Appliance HISEF 921 HK Lucy Yu
ITC ITCTF ITC IN Aditya Mathur
Kao KAOCF 4452 JP Kentaro Hosoda
KOSE Holdings KOSCF 4922 JP Kentaro Hosoda
Kusuri No Aoki Holdings XADAF 3549 JP Arashi Nishizawa
Laopu Gold XLGBF 6181 HK Ronald Leung, CFA
Man Wah Holdings MAWHF 1999 HK Yoyo Pang
MINISO Group Holdings MNSO MNSO US Lucy Yu
MINISO Group Holdings XKTAF 9896 HK Lucy Yu
Pop Mart POPMF 9992 HK Alice Ma
Proya Cosmetics XPXCF 603605 CH Lucy Yu
Robam Appliance XVPDF 002508 CH Lucy Yu
Suntory Beverage & Food STBFF 2587 JP Manabu Sumoge
Tata Consumer Products XTCUF TATACONS IN Aditya Mathur
Tingyi TCYMF 322 HK Jack Chen
Topsports International Holding Ltd. TPSRF 6110 HK Lucy Yu
Tsuruha Holdings TSUSF 3391 JP Arashi Nishizawa
Unicharm UNCHF 8113 JP Kentaro Hosoda
Uni-president China UNPSF 220 HK Jack Chen
Wuliangye Yibin YBWUF 000858 CH Chen Luo, CFA
Yamada Holdings YMDAF 9831 JP Arashi Nishizawa
Yonghui Superstores Co Ltd XQYXF 601933 CH Lucy Yu
Yue Yuen YUEIF 551 HK Yoyo Pang
UNDERPERFORM
Anjoy Foods XSWCF 603345 CH Jack Chen
Bairun XSBZF 002568 CH Jack Chen
Colgate-Palmolive India CPIYF CLGT IN Aditya Mathur
Eclat ECLAF 1476 TT Ronald Leung, CFA
CR
Consumer Electronics - China | 28 April 2026 23
APR - Consumer Coverage Cluster
Investment rating Company BofA Ticker Bloomberg symbol Analyst
Fuling Zhacai XSRTF 002507 CH Jack Chen
Gambol Pet XYEDF 301498 CH Alice Ma
Giant Manufacturing GTMUF 9921 TT Ronald Leung, CFA
Hotel Shilla HSLLF 008770 KS Ahyung Cho
Jason Furniture XVZDF 603816 CH Yoyo Pang
Jiangsu Yanghe Brewery XJBTF 002304 CH Chen Luo, CFA
Kobayashi Pharmaceutical KBYPF 4967 JP Kentaro Hosoda
Lai Yih Footwear XAWWF 6890 TT Ronald Leung, CFA
LG H&H LGHHF 051900 KS Ahyung Cho
Lotte Shopping LOSPF 023530 KS Ahyung Cho
Luzhou Laojiao XMBBF 000568 CH Chen Luo, CFA
Makalot Industrial MAKAF 1477 TT Ronald Leung, CFA
Merida Industry Co Ltd MIUYF 9914 TT Ronald Leung, CFA
Mixue Group XDGRF 2097 HK Chen Luo, CFA
Nestle India XNTEF NEST IN Aditya Mathur
Oppein Home Group XKXRF 603833 CH Yoyo Pang
Pidilite Industries PDLFF PIDI IN Aditya Mathur
Pola Orbis HD PORBF 4927 JP Kentaro Hosoda
Sapphire Foods XLQLF SAPPHIRE IN Aditya Mathur
Sapporo Holdings SOOBF 2501 JP Manabu Sumoge
Seria SAOGF 2782 JP Arashi Nishizawa
Shanghai Jahwa SNJUF 600315 CH Lucy Yu
Shanghai M&G Stationery XBHUF 603899 CH Yoyo Pang
SHIMAMURA SHAOF 8227 JP Arashi Nishizawa
Smoore SMORF 6969 HK Alice Ma
United Breweries UBWRF UBBL IN Aditya Mathur
Want Want China WWNTF 151 HK Chen Luo, CFA
WORKMAN WKISF 7564 JP Arashi Nishizawa
Yihai Intl YNNHF 1579 HK Lucy Yu
Yihai Kerry Arawana XYIHF 300999 CH Jack Chen
Disclosures
Important Disclosures
Anker Innovations (XAIFF) Price Chart
The Investment Opinion System is contained at the end of the report under the heading "Fundamental Equity Opinion Key". Dark grey shading indicates the security is restricted with the opinion suspended. Medium grey
shading indicates the security is under review with the opinion withdrawn. Light grey shading indicates the security is not covered. Chart is current as of a date no more than one trading day prior to the date of the report.
CR
24 Consumer Electronics - China | 28 April 2026
Roborock Technology (XBTLF) Price Chart
The Investment Opinion System is contained at the end of the report under the heading "Fundamental Equity Opinion Key". Dark grey shading indicates the security is restricted with the opinion suspended. Medium grey
shading indicates the security is under review with the opinion withdrawn. Light grey shading indicates the security is not covered. Chart is current as of a date no more than one trading day prior to the date of the report.
Equity Investment Rating Distribution: Consumer Products Group (as of 31 Mar 2026)
Coverage Universe Count Percent Inv. Banking Relationships R1 Count Percent
Buy 37 % Buy 19 %
Hold 19 % Hold 8 %
Sell 19 % Sell 11 %
Equity Investment Rating Distribution: Electronics Group (as of 31 Mar 2026)
Coverage Universe Count Percent Inv. Banking Relationships R1 Count Percent
Buy 34 % Buy 17 %
Hold 10 % Hold 3 %
Sell 16 % Sell 6 %
Equity Investment Rating Distribution: Global Group (as of 31 Mar 2026)
Coverage Universe Count Percent Inv. Banking Relationships R1 Count Percent
Buy 1993 % Buy 1186 %
Hold 821 % Hold 509 %
Sell 760 % Sell 400 %
R1 Issuers that were investment banking clients of BofA Securities or one of its affiliates within the past 12 months. For purposes of this Investment Rating Distribution, the coverage universe includes only stocks. A stock
rated Neutral is included as a Hold, and a stock rated Underperform is included as a Sell.
FUNDAMENTAL EQUITY OPINION KEY: Opinions include a Volatility Risk Rating, an Investment Rating and an Income Rating. VOLATILITY RISK RATINGS, indicators
of potential price fluctuation, are: A - Low, B - Medium and C - High. INVESTMENT RATINGS reflect the analyst’s assessment of both a stock’s absolute total return
potential as well as its attractiveness for investment relative to other stocks within its Coverage Cluster (defined below). Our investment ratings are: 1 - Buy stocks
are expected to have a total return of at least 10% and are the most attractive stocks in the coverage cluster; 2 - Neutral stocks are expected to remain flat or
increase in value and are less attractive than Buy rated stocks and 3 - Underperform stocks are the least attractive stocks in a coverage cluster. An investment rating
of 6 (No Rating) indicates that a stock is no longer trading on the basis of fundamentals. Analysts assign investment ratings considering, among other things, the 0-
12 month total return expectation for a stock and the firm’s guidelines for ratings dispersions (shown in the table below). The current price objective for a stock
should be referenced to better understand the total return expectation at any given time. The price objective reflects the analyst’s view of the potential price
appreciation (depreciation).
Investment rating Total return expectation (within 12-month period of date of initial
rating)
Ratings dispersion guidelines for coverage clusterR2
Buy ≥ 10% ≤ 70%
Neutral ≥ 0% ≤ 30%
Underperform N/A ≥ 20%
R2Ratings dispersions may vary from time to time where BofA Global Research believes it better reflects the investment prospects of stocks in a Coverage Cluster.
INCOME RATINGS, indicators of potential cash dividends, are: 7 - same/higher (dividend considered to be secure), 8 - same/lower (dividend not considered to be secure)
and 9 - pays no cash dividend. Coverage Cluster is comprised of stocks covered by a single analyst or two or more analysts sharing a common industry, sector,
region or other classification(s). A stock’s coverage cluster is included in the most recent BofA Global Research report referencing the stock.
Price Charts for the securities referenced in this research report are available on the Price Charts website, or call 1-800-MERRILL to have them mailed.
In the US, retail sales and/or distribution of this report may be made only in states where these securities are exempt from registration or have been qualified for sale: Anker Innovations, Arashi
Vision, Roborock Technology.
BofA Global Research personnel (including the analyst(s) responsible for this report) receive compensation based upon, among other factors, the overall profitability of Bank of America
Corporation, including profits derived from investment banking. The analyst(s) responsible for this report may also receive compensation based upon, among other factors, the overall
profitability of the Bank’s sales and trading businesses relating to the class of securities or financial instruments for which such analyst is responsible.
Other Important Disclosures
From time to time research analysts conduct site visits of covered issuers. BofA Global Research policies prohibit research analysts from accepting payment or reimbursement for travel
CR
Consumer Electronics - China | 28 April 2026 25
expenses from the issuer for such visits.
Prices are indicative and for information purposes only. Except as otherwise stated in the report, for any recommendation in relation to an equity security, the price referenced is the publicly
traded price of the security as of close of business on the day prior to the date of the report or, if the report is published during intraday trading, the price referenced is indicative of the traded
price as of the date and time of the report and in relation to a debt security (including equity preferred and CDS), prices are indicative as of the date and time of the report and are from various
sources including BofA Securities trading desks.
The date and time of completion of the production of any recommendation in this report shall be the date and time of dissemination of this report as recorded in the report timestamp.
Recipients who are not institutional investors or market professionals should seek the advice of their independent financial advisor before considering information in this report in connection
with any investment decision, or for a necessary explanation of its contents.
Officers of BofAS or one or more of its affiliates (other than research analysts) may have a financial interest in securities of the issuer(s) or in related investments.
Refer to BofA Global Research policies relating to conflicts of interest.
"BofA Securities" includes BofA Securities, Inc. ("BofAS") and its affiliates. Investors should contact their BofA Securities representative or Merrill Global Wealth Management financial
advisor if they have questions concerning this report or concerning the appropriateness of any investment idea described herein for such investor. "BofA Securities" is a global brand
for BofA Global Research.
Information relating to Non-US affiliates of BofA Securities and Distribution of Affiliate Research Reports:
BofAS and/or Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S") may in the future distribute, information of the following non-US affiliates in the US (short name: legal name,
regulator): Merrill Lynch (South Africa): Merrill Lynch South Africa (Pty) Ltd., regulated by the Financial Sector Conduct Authority; MLI (UK): Merrill Lynch International, regulated by the Financial
Conduct Authority (FCA) and the Prudential Regulation Authority (PRA); BofASE (France): BofA Securities Europe SA is authorized by the Autorité de Contrôle Prudentiel et de Résolution (ACPR)
and regulated by the ACPR and the Autorité des Marchés Financiers (AMF). BofA Securities Europe SA ("BofASE") with registered address at 51, rue La Boétie, 75008 Paris is registered under no
842 602 690 RCS Paris. In accordance with the provisions of French Code Monétaire et Financier (Monetary and Financial Code), BofASE is an établissement de crédit et d'investissement (credit
and investment institution) that is authorised and supervised by the European Central Bank and the Autorité de Contrôle Prudentiel et de Résolution (ACPR) and regulated by the ACPR and the
Autorité des Marchés Financiers. BofASE's share capital can be found at BofA Europe (Milan): Bank of America Europe Designated Activity Company, Milan
Branch, regulated by the Bank of Italy, the European Central Bank (ECB) and the Central Bank of Ireland (CBI); BofA Europe (Frankfurt): Bank of America Europe Designated Activity Company,
Frankfurt Branch regulated by BaFin, the ECB and the CBI; BofA Europe (Zurich): Bank of America Europe Designated Activity Company, Zurich Branch, regulated by the Swiss Financial Market
Supervisory Authority FINMA, the ECB and CBI; BofA Europe (Madrid): Bank of America Europe Designated Activity Company, Sucursal en España, regulated by the Bank of Spain, the ECB and the
CBI; Merrill Lynch (Australia): Merrill Lynch Equities (Australia) Limited, regulated by the Australian Securities and Investments Commission; Merrill Lynch (Hong Kong): Merrill Lynch (Asia Pacific)
Limited, regulated by the Hong Kong Securities and Futures Commission (HKSFC); Merrill Lynch (Singapore): Merrill Lynch (Singapore) Pte Ltd, regulated by the Monetary Authority of Singapore
(MAS); Merrill Lynch (Canada): Merrill Lynch Canada Inc, regulated by the Canadian Investment Regulatory Organization; Merrill Lynch (Mexico): Merrill Lynch Mexico, SA de CV, Casa de Bolsa,
regulated by the Comisión Nacional Bancaria y de Valores; BofAS Japan: BofA Securities Japan Co., Ltd., regulated by the Financial Services Agency; Merrill Lynch (Seoul): Merrill Lynch
International, LLC Seoul Branch, regulated by the Financial Supervisory Service; Merrill Lynch (Taiwan): Merrill Lynch Securities (Taiwan) Ltd., regulated by the Securities and Futures Bureau;
BofAS India: BofA Securities India Limited, regulated by the Securities and Exchange Board of India (SEBI); Merrill Lynch (Israel): Merrill Lynch Israel Limited, regulated by Israel Securities
Authority; Merrill Lynch (DIFC): Merrill Lynch International (DIFC Branch), regulated by the Dubai Financial Services Authority (DFSA); Merrill Lynch (Brazil): Merrill Lynch . Corretora de Títulos e
Valores Mobiliários, regulated by Comissão de Valores Mobiliários; Merrill Lynch KSA Company: Merrill Lynch Kingdom of Saudi Arabia Company, regulated by the Capital Market Authority.
This information: has been approved for publication and is distributed in the United Kingdom (UK) to professional clients and eligible counterparties (as each is defined in the rules of the FCA
and the PRA) by MLI (UK), which is authorized by the PRA and regulated by the FCA and the PRA - details about the extent of our regulation by the FCA and PRA are available from us on request;
has been approved for publication and is distributed in the European Economic Area (EEA) by BofASE (France), which is authorized by the ACPR and regulated by the ACPR and the AMF; has
been considered and distributed in Japan by BofAS Japan, a registered securities dealer under the Financial Instruments and Exchange Act in Japan, or its permitted affiliates; is issued and
distributed in Hong Kong by Merrill Lynch (Hong Kong) which is regulated by HKSFC; is issued and distributed in Taiwan by Merrill Lynch (Taiwan); is issued and distributed in India by BofAS
India; and is issued and distributed in Singapore to institutional investors and/or accredited investors (each as defined under the Financial Advisers Regulations) by Merrill Lynch (Singapore)
(Company Registration No 198602883D). Merrill Lynch (Singapore) is regulated by MAS. Merrill Lynch Equities (Australia) Limited (ABN 65 006 276 795), AFS License 235132 (MLEA) distributes
this information in Australia only to 'Wholesale' clients as defined by of the Corporations Act 2001. With the exception of Bank of America ., Australia Branch, neither MLEA nor any of
its affiliates involved in preparing this information is an Authorised Deposit-Taking Institution under the Banking Act 1959 nor regulated by the Australian Prudential Regulation Authority. No
approval is required for publication or distribution of this information in Brazil and its local distribution is by Merrill Lynch (Brazil) in accordance with applicable regulations. Merrill Lynch (DIFC) is
authorized and regulated by the DFSA. Information prepared and issued by Merrill Lynch (DIFC) is done so in accordance with the requirements of the DFSA conduct of business rules. BofA
Europe (Frankfurt) distributes this information in Germany and is regulated by BaFin, the ECB and the CBI. BofA Securities entities, including BofA Europe and BofASE (France), may
outsource/delegate the marketing and/or provision of certain research services or aspects of research services to other branches or members of the BofA Securities group. You may be contacted
by a different BofA Securities entity acting for and on behalf of your service provider where permitted by applicable law. This does not change your service provider. Please refer to the Electronic
Communications Disclaimers for further information.
This information has been prepared and issued by BofAS and/or one or more of its non-US affiliates. The author(s) of this information may not be licensed to carry on regulated activities in your
jurisdiction and, if not licensed, do not hold themselves out as being able to do so. BofAS and/or MLPF&S is the distributor of this information in the US and accepts full responsibility for
information distributed to BofAS and/or MLPF&S clients in the US by its non-US affiliates. Any US person receiving this information and wishing to effect any transaction in any security
discussed herein should do so through BofAS and/or MLPF&S and not such foreign affiliates. Hong Kong recipients of this information should contact Merrill Lynch (Asia Pacific) Limited in
respect of any matters relating to dealing in securities or provision of specific advice on securities or any other matters arising from, or in connection with, this information. Singapore recipients
of this information should contact Merrill Lynch (Singapore) Pte Ltd in respect of any matters arising from, or in connection with, this information. For clients that are not accredited investors,
expert investors or institutional investors Merrill Lynch (Singapore) Pte Ltd accepts full responsibility for the contents of this information distributed to such clients in Singapore.
General Investment Related Disclosures:
Taiwan Readers: Neither the information nor any opinion expressed herein constitutes an offer or a solicitation of an offer to transact in any securities or other financial instrument. No part of
this report may be used or reproduced or quoted in any manner whatsoever in Taiwan by the press or any other person without the express written consent of BofA Securities.
This document provides general information only, and has been prepared for, and is intended for general distribution to, BofA Securities clients. Neither the information nor any opinion
expressed constitutes an offer or an invitation to make an offer, to buy or sell any securities or other financial instrument or any derivative related to such securities or instruments (., options,
futures, warrants, and contracts for differences). This document is not intended to provide personal investment advice and it does not take into account the specific investment objectives,
financial situation and the particular needs of, and is not directed to, any specific person(s). This document and its content do not constitute, and should not be considered to constitute,
investment advice for purposes of ERISA, the US tax code, the Investment Advisers Act or otherwise. Investors should seek financial advice regarding the appropriateness of investing in financial
instruments and implementing investment strategies discussed or recommended in this document and should understand that statements regarding future prospects may not be realized. Any
decision to purchase or subscribe for securities in any offering must be based solely on existing public information on such security or the information in the prospectus or other offering
document issued in connection with such offering, and not on this document.
Securities and other financial instruments referred to herein, or recommended, offered or sold by BofA Securities, are not insured by the Federal Deposit Insurance Corporation and are not
deposits or other obligations of any insured depository institution (including, Bank of America, .). Investments in general and, derivatives, in particular, involve numerous risks, including,
among others, market risk, counterparty default risk and liquidity risk. No security, financial instrument or derivative is suitable for all investors. Digital assets are extremely speculative, volatile
and are largely unregulated. In some cases, securities and other financial instruments may be difficult to value or sell and reliable information about the value or risks related to the security or
financial instrument may be difficult to obtain. Investors should note that income from such securities and other financial instruments, if any, may fluctuate and that price or value of such
securities and instruments may rise or fall and, in some cases, investors may lose their entire principal investment. Past performance is not necessarily a guide to future performance. Levels and
basis for taxation may change.
This report may contain a short-term trading idea or recommendation, which highlights a specific near-term catalyst or event impacting the issuer or the market that is anticipated to have a
short-term price impact on the equity securities of the issuer. Short-term trading ideas and recommendations are different from and do not affect a stock's fundamental equity rating, which
reflects both a longer term total return expectation and attractiveness for investment relative to other stocks within its Coverage Cluster. Short-term trading ideas and recommendations may
CR
26 Consumer Electronics - China | 28 April 2026
be more or less positive than a stock's fundamental equity rating.
BofA Securities is aware that the implementation of the ideas expressed in this report may depend upon an investor's ability to "short" securities or other financial instruments and that such
action may be limited by regulations prohibiting or restricting "shortselling" in many jurisdictions. Investors are urged to seek advice regarding the applicability of such regulations prior to
executing any short idea contained in this report.
Foreign currency rates of exchange may adversely affect the value, price or income of any security or financial instrument mentioned herein. Investors in such securities and instruments,
including ADRs, effectively assume currency risk.
BofAS or one of its affiliates is a regular issuer of traded financial instruments linked to securities that may have been recommended in this report. BofAS or one of its affiliates may, at any time,
hold a trading position (long or short) in the securities and financial instruments discussed in this report.
BofA Securities, through business units other than BofA Global Research, may have issued and may in the future issue trading ideas or recommendations that are inconsistent with, and reach
different conclusions from, the information presented herein. Such ideas or recommendations may reflect different time frames, assumptions, views and analytical methods of the persons who
prepared them, and BofA Securities is under no obligation to ensure that such other trading ideas or recommendations are brought to the attention of any recipient of this information.
In the event that the recipient received this information pursuant to a contract between the recipient and BofAS for the provision of research services for a separate fee, and in connection
therewith BofAS may be deemed to be acting as an investment adviser, such status relates, if at all, solely to the person with whom BofAS has contracted directly and does not extend beyond
the delivery of this report (unless otherwise agreed specifically in writing by BofAS). If such recipient uses the services of BofAS in connection with the sale or purchase of a security referred to
herein, BofAS may act as principal for its own account or as agent for another person. BofAS is and continues to act solely as a broker-dealer in connection with the execution of any transactions,
including transactions in any securities referred to herein.
Copyright and General Information:
Copyright 2026 Bank of America Corporation. All rights reserved. iQdatabase® is a registered service mark of Bank of America Corporation. This information is prepared for the use of BofA
Securities clients and may not be redistributed, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of BofA Securities. This document
and its content is provided solely for informational purposes and cannot be used for training or developing artificial intelligence (AI) models or as an input in any AI application (collectively, an AI
tool). Any attempt to utilize this document or any of its content in connection with an AI tool without explicit written permission from BofA Global Research is strictly prohibited. BofA Global
Research utilizes AI, including machine learning and other technologies, to enhance the services we provide to our clients. These technologies assist our analysts in various aspects of their work,
including but not limited to data analysis, content extraction, content creation, data aggregation and summarization and identifying relevant information from diverse sources. All AI-driven
processes are subject to review by BofA Global Research employees. BofA Global Research information is distributed simultaneously to internal and client websites and other portals by BofA
Securities and is not publicly-available material. Any unauthorized use or disclosure is prohibited. Receipt and review of this information constitutes your agreement not to redistribute,
retransmit, or disclose to others the contents, opinions, conclusion, or information contained herein (including any investment recommendations, estimates or price targets) without first
obtaining express permission from an authorized officer of BofA Securities.
Materials prepared by BofA Global Research personnel are based on public information. Facts and views presented in this material have not been reviewed by, and may not reflect information
known to, professionals in other business areas of BofA Securities, including investment banking personnel. BofA Securities has established information barriers between BofA Global Research
and certain business groups. As a result, BofA Securities does not disclose certain client relationships with, or compensation received from, such issuers. To the extent this material discusses
any legal proceeding or issues, it has not been prepared as nor is it intended to express any legal conclusion, opinion or advice. Investors should consult their own legal advisers as to issues of
law relating to the subject matter of this material. BofA Global Research personnel’s knowledge of legal proceedings in which any BofA Securities entity and/or its directors, officers and
employees may be plaintiffs, defendants, co-defendants or co-plaintiffs with or involving issuers mentioned in this material is based on public information. Facts and views presented in this
material that relate to any such proceedings have not been reviewed by, discussed with, and may not reflect information known to, professionals in other business areas of BofA Securities in
connection with the legal proceedings or matters relevant to such proceedings.
This information has been prepared independently of any issuer of securities mentioned herein and not in connection with any proposed offering of securities or as agent of any issuer of any
securities. None of BofAS any of its affiliates or their research analysts has any authority whatsoever to make any representation or warranty on behalf of the issuer(s). BofA Global Research
policy prohibits research personnel from disclosing a recommendation, investment rating, or investment thesis for review by an issuer prior to the publication of a research report containing
such rating, recommendation or investment thesis.
Any information relating to sustainability in this material is limited as discussed herein and is not intended to provide a comprehensive view on any sustainability claim with respect to any
issuer or security.
Any information relating to the tax status of financial instruments discussed herein is not intended to provide tax advice or to be used by anyone to provide tax advice. Investors are urged to
seek tax advice based on their particular circumstances from an independent tax professional.
The information herein (other than disclosure information relating to BofA Securities and its affiliates) was obtained from various sources and we do not guarantee its accuracy. This information
may contain links to third-party websites. BofA Securities is not responsible for the content of any third-party website or any linked content contained in a third-party website. Content
contained on such third-party websites is not part of this information and is not incorporated by reference. The inclusion of a link does not imply any endorsement by or any affiliation with BofA
Securities. Access to any third-party website is at your own risk, and you should always review the terms and privacy policies at third-party websites before submitting any personal information
to them. BofA Securities is not responsible for such terms and privacy policies and expressly disclaims any liability for them.
All opinions, projections and estimates constitute the judgment of the author as of the date of publication and are subject to change without notice. Prices also are subject to change without
notice. BofA Securities is under no obligation to update this information and BofA Securities ability to publish information on the subject issuer(s) in the future is subject to applicable quiet
periods. You should therefore assume that BofA Securities will not update any fact, circumstance or opinion contained herein.
Subject to the quiet period applicable under laws of the various jurisdictions in which we distribute research reports and other legal and BofA Securities policy-related restrictions on the
publication of research reports, fundamental equity reports are produced on a regular basis as necessary to keep the investment recommendation current.
Certain outstanding reports or investment opinions relating to securities, financial instruments and/or issuers may no longer be current. Always refer to the most recent research report relating
to an issuer prior to making an investment decision.
In some cases, an issuer may be classified as Restricted or may be Under Review or Extended Review. In each case, investors should consider any investment opinion relating to such issuer (or
its security and/or financial instruments) to be suspended or withdrawn and should not rely on the analyses and investment opinion(s) pertaining to such issuer (or its securities and/or financial
instruments) nor should the analyses or opinion(s) be considered a solicitation of any kind. Sales persons and financial advisors affiliated with BofAS or any of its affiliates may not solicit
purchases of securities or financial instruments that are Restricted or Under Review and may only solicit securities under Extended Review in accordance with firm policies.
Neither BofA Securities nor any officer or employee of BofA Securities accepts any liability whatsoever for any direct, indirect or consequential damages or losses arising from any use of this
information.
CR
Prefer Anker and Roborock over Arashi
Analytical framework of consumer electronics stocks
Quality products to drive new demand
AI
Hardware upgrades
Product innovations
Industry demand drivers for new electronics products
Energy security
Home safety
Outdoor activities
Increasing use of social media for sharing photos/videos
China brands seem well positioned to grow in global market
Low cultural barriers for consumer electronics products
Access to abundant skilled labor and low-cost supply chain
Online channels allow Chinese brands to penetrate overseas market more easily
Key risk #1: Competition
Highly competitive industry
Competitive edges of sector leaders
Long-term monetization potential of brands
Key risk #2: Government policy
Tariffs
Consumer data/privacy
Sanctions/import restrictions
User regulations
Key risk #3: Raw material costs
New market entrants intensify competition
Disclosures
Important Disclosures
