Green and cool stand to gain

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China's?air-conditioner makers will benefit from rising sales and higher prices this year, with energy efficient models expected to dominate the market as the country embarks on efforts to cut carbon emissions, experts said.

"The combined net profits for the first half are likely to jump dramatically due to a lower base last year and on a sales boost sparked by the government's stimulus measures to trigger domestic consumption," said Deng Yongkang, a Shanghai Securities Co analyst.

Suning Appliance Co, which distributes 20 percent of the country's air-conditioners, said in a latest report that sales on the mainland could rebound 10 percent to 36 million units boosted by the government's measures to prompt sales of greener models and encourage rural consumption.

A robust demand for inverter air-conditioners and other energy-efficient models will help to raise profit margins as well, said Wang Nianchun, an analyst at Guosen Securities Co.

Suning also estimated air-conditioner prices to rise 10 percent this year after falling 15 percent on high inventories and shrinking exports in 2009.

Shanghai Securities Co forecast Gree Electric Appliances, Guangdong Midea and Qingdao Haier to gain.

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