Europe's Heat Wave Is Bright Spot for China's Portable AC Makers
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Author of the article:You can save this article by registering for freehere. Orsign-inif you have an account. 4t9cjn6{p6t5r]d0wuhhj7s[_media_dl_1. pngBloomberg(Bloomberg) — As heat records shattered across Europe in the last weeks of June and indoor temperatures rose to uncomfortable levels, many of the continent’s residents sought immediate relief in the form of portable air conditioner units. Subscribe now to read the latest news in your city and across Canada. Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others. Daily content from Financial Times, the world's leading global business publication. Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account. National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles, including the New York Times Crossword. Subscribe now to read the latest news in your city and across Canada. Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others. Daily content from Financial Times, the world's leading global business publication. Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account. National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles, including the New York Times Crossword. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorRising consumer appetite for such units, which can be installed almost instantly and are cheaper than the traditional split inverter units that are more common in the US and Asia, is providing earnings tailwinds for Chinese appliance giants including Midea Group Co. , Haier Smart Home Co. and Gree Electric Appliances Inc. “Overall, we expect strong demand for window-mounted air conditioners to drive year-on-year export sales growth for major Chinese manufacturers in summer months,” said Morningstar analyst Jeff Zhang, forecasting a “meaningful” boost in second- and third-quarter revenue growth. Get the latest headlines, breaking news and columns. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Top Stories will soon be in your inbox. We encountered an issue signing you up. Please try againFoshan-based Midea could see consumer air conditioning sales in Europe grow by more than 20% year-on-year for the second quarter, according to Citigroup Inc. The firm anticipated this summer’s demand by stockpiling two to three times last year’s inventory of portable split air conditioners ahead of the peak season, analysts led by Xiaopo Wei wrote in a note. Haier Smart Home could record double-digit growth for its European air-conditioner segment this year, which accounted for an estimated 20% of its regional business in 2025. Gree’s overseas revenue also only contributes about 15% of group sales, according to Citi. While welcome, stronger European demand is “unlikely to fully offset weaker sales in China, which remains the largest revenue market,” said Bloomberg Intelligence’s Elaine Lai. Chinese appliance makers continue to face challenges including a stubbornly weak consumer market back in China, lower domestic subsidies and rising commodity costs. A sharp rise in raw-material costs led by aluminum and copper could also squeeze gross margins and temper the earnings upside, according to Lai. UnderpenetratedOnly a fifth of European households have air conditioning, International Energy Agency data shows. That offers further opportunity for appliance makers, in particular those of portable units as the continent’s politicians and regulators get bogged down in the debate over if and how to allow the installation of the bulkier wall-mounted units. Chinese products’ high convenience for usage, affordable pricing and installation cost savings will structurally benefit key manufacturers in the long run, according to Zhang. “This may become recurring if global warming persists. ”Join the ConversationThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more aboutcookies here. By continuing to use our site, you agree to ourTerms of UseandPrivacy Policy.