0746 GMT - Certain Chinese home-appliance stocks appear undervalued, says Morningstar's Jeff Zhang. The market is cautious as the sector's price-to-earnings ratios are under pressure since 2H 2025 on growth concerns at home and abroad, he says. Investors are underestimating the long-term margin expansion potential of Midea Group and Haier Smart Home, Zhang says. Haier's H shares are likely to be rerated over time as profitability improves, while Midea Group's A shares are preferred over its H shares, on greater upside. Morningstar has fair-value estimates of CNY89.00 on Midea's A shares, which are last at CNY79.52, and HK$37.20 on Haier's H shares, which are last at HK$27.43. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

February 24, 2026 02:46 ET (07:46 GMT)

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