Review of the secondary market: this week (2022.2.7-2.11), the home appliance industry rose by 1.29%, ranking 21st in the primary industry classification of CITIC, with a slightly depressed performance. Among the subdivided and related sectors of household appliances, the panel and kitchen electricity sectors increased significantly, up 3.07% and 2.28% respectively; Small household appliances and white electricity sectors rose by 1.71% and 1.59% respectively, about 0.3 percentage points higher than the overall level of the household appliance industry; The home appliance parts and professional equipment manufacturing sector fell 0.72% this week, narrower than the week before the Spring Festival. In terms of individual stocks, among the 84 A-share listed companies in the household appliance industry this week, 52 rose, one was flat and 31 fell.
Retail market performance: in 2022w6 (1.31-2.6), the sales of China’s dual end market of all kinds of household appliances decreased significantly year-on-year, and the growth rate decreased by about 60 percentage points compared with the week before the Spring Festival holiday, including – 61.63% in the online market and – 61.51% in the offline Market. From the perspective of focusing on categories, the sales volume in the dual end market of various categories of products this week continued to have a negative growth trend year-on-year, but the growth rate of air conditioners, clothes dryers and dishwashers rebounded slightly. The average price rise is mainly reflected in the offline market, in which the average price of dishwashers and integrated stoves increased by about 1000 yuan / set and 1500 yuan / set respectively year-on-year.
Data tracking of raw materials and marine real estate: LME copper and aluminum prices rose again this week, among which LME copper price exceeded US $10000 / ton again, and LME aluminum price also reached an all-time high recently; Rebar prices also continued to rise. As of the closing on February 11, the settlement price of shift rebar was close to 5000 yuan / ton; In terms of shipping costs, compared with the week before the Spring Festival holiday, this week, except that the CCFI of China’s routes to Australia and New Zealand decreased month on month, the freight rate indexes of other routes further improved, among which the CCFI of routes to the United States, Western Europe and Europe increased by about 4% month on month. During the Spring Festival holiday, the national commercial housing trading market once again ushered in a regular decline.
Opinions and investment suggestions: according to the sales of “New Year’s festival” on various e-commerce platforms, the sales of small household appliances increased significantly year-on-year, especially the year-on-year growth of emerging categories such as floor washing machines and massage machines exceeded 30%, and the sales of intelligent projectors were close to 90% year-on-year. In addition, the sales growth of personal care products such as mite remover, intelligent toilet pad and fascia gun also reached a new high. In the context of the current upgrading of residents’ consumption and the rapid improvement of home health awareness, a series of preferential subsidy policies launched by e-commerce platforms and offline stores have effectively improved the sluggish demand for home appliances. Compared with large household appliances, small household appliances have broad incremental space, especially the emerging categories of small household appliances. Based on their effective meeting and solving the contemporary home demand and application pain points of multiple scenarios, the market demand may be better in the long term. Under the game of power stock market, the sales of multi-functional and energy-saving products have increased steadily. In addition, in the context of rising raw material prices and intensified industry competition, more and more enterprises actively promote the optimization of their product structure. On the one hand, they aim to lay out the medium and high-end market and seize the market share of high-priced products; On the other hand, the higher customer unit price also alleviates the pressure on the cost side and ensures its profitability to a certain extent. Therefore, under the comprehensive analysis, the home appliance industry suggests to pay attention to:
In the white power sector, the industrial chain layout is complete, the overseas market expansion and high-end product market construction are relatively mature white power head Midea Group Co.Ltd(000333) (000333. SZ), Haier Smart Home Co.Ltd(600690) (600690. SH);
In the kitchen electricity sector, the market penetration has increased rapidly, enjoying the head of high prosperity and growth integrated stove industry Zhejiang Meida Industrial Co.Ltd(002677) (002677. SZ), as well as the leader of medium and high-end kitchen electricity market Hangzhou Robam Appliances Co.Ltd(002508) (002508. SZ);
In the small household appliances sector, enterprises with competitive advantages in product power and sales channels in the clean small household appliances and intelligent projection industry: Ecovacs Robotics Co.Ltd(603486) (603486. SH), Chengdu Xgimi Technology Co.Ltd(688696) (688696. SH).
Risk warning: repeated epidemic situation; The market demand is less than expected; Industry competition pattern intensifies; Risk of continuous fluctuations in raw material prices, shipping costs and exchange rates.
