Market performance
This week (12.3-12.9), the CSI 300 index rose 4.58%, the home appliance (CITIC) sector rose 5.39%, and the industry outperformed the market by 0.81 percentage points, ranking third among the 30 CITIC first-class industries. In terms of sub sectors, kitchen appliances were 10.42%, white appliances were 6.65%, lighting electricians and other 0.16%, small appliances were 2.96%, and black appliances were 2.13%. In terms of individual stocks, nearly five trading days Hisense Home Appliances Group Co.Ltd(000921) (+ 19.06%), Zhejiang Yankon Group Co.Ltd(600261) (+ 18.45%) and Hangzhou Robam Appliances Co.Ltd(002508) (+ 16.44%) led the increase, while Shenzhen Longtech Smart Control Co.Ltd(300916) (- 9.21%), Shanghai Highly (Group) Co.Ltd(600619) (- 8.58%) and Aucma Co.Ltd(600336) (- 8.23%) led the decrease.
Industry related data
White electricity: according to AVC data, the 49th week of 2021 (November 29, 2021-december 5, 2021) the offline sales volume of air conditioners decreased by 36.13% and 42.3% year-on-year; the online sales volume decreased by 21.61% and 27.83% year-on-year. The offline sales volume of refrigerators decreased by 0.44% and 18.64% year-on-year; the online sales volume decreased by 7.1% and 9.41% year-on-year. The offline sales volume of washing machines decreased by 22.52% and 33.13% year-on-year The sales volume decreased by 7.84% and the sales volume decreased by 19.25% year-on-year.
Black TV: according to AVC data statistics, in the 49th week of 2021 (2021.11.29-2021.12.5), the offline sales volume of color TV sets decreased by 21.51% year-on-year, the sales volume decreased by 36.02% year-on-year, the average price of offline products was 5003 yuan, and the average price increased by 954 yuan year-on-year; the online sales volume increased by 0.96% year-on-year, the sales volume increased by 5.48%, and the average price of online products was 2470 yuan, and the average price decreased by 111 yuan year-on-year.
Kitchen electricity: according to AVC data, the 49th week of 2021 (November 29, 2021-december 5, 2021) the offline sales of range hood, gas stove, integrated stove and kitchen electric package increased by – 11.3%, – 1.96%, 57.09% and – 22.05% respectively year-on-year, and the sales increased by – 18.76%, – 13.79%, 45.12% and – 28.53% respectively year-on-year; the online sales increased by 0.03%, – 17.91%, – 6.53% and – 4.21% respectively year-on-year, and the sales decreased by 13.77%, 28.53%, 20.72% and 13.13% respectively year-on-year.
Small household appliances: according to AVC data, the 49th week of 2021 (November 29, 2021-december 5, 2021) the offline sales of soybean milk machine, cooking machine, health pot and wall breaking machine decreased by 8.85%, 21.56%, 33.93% and 18.56% respectively year-on-year, and the sales volume decreased by 10.62%, 30.27%, 29.98% and 21.67% respectively year-on-year; the online sales volume decreased by 22.32%, 20.12%, 25.53% and 21.56% respectively year-on-year, and the sales volume decreased by 17.21%, 20.82%, 31.33% and 17.85% respectively year-on-year.
Household appliance industry highlights
In November, the “scissors gap” between PPI and CPI narrowed
UNCTAD report: strong growth momentum of Global trade
In the first 11 months, China’s household appliance exports increased by 12.1% year-on-year
Key company dynamics
Kingclean Electric Co.Ltd(603355) : Announcement on obtaining government subsidies
Guangdong Tonze Electric Co.Ltd(002759) : Announcement on cancellation of the joint venture
Investment advice
The market of the sector has warmed up this week. In terms of investment suggestions, we suggest paying attention to the following points: 1. Focus on grasping the leader of undervalued performance exceeding expectations and ushering in an inflection point; 2. The prosperity of emerging household appliances continues to improve. It is suggested to pay attention to the leaders of emerging household appliances industry who enjoy the high growth dividend of the industry. To sum up, the industry is temporarily given a “optimistic” rating. It is recommended to pay attention to Midea Group Co.Ltd(000333) (000333), Haier Smart Home Co.Ltd(600690) (600690), Gree Electric Appliances Inc.Of Zhuhai(000651) (000651), Shenzhen Crastal Technology Co.Ltd(300824) (300824) and Zhejiang Meida Industrial Co.Ltd(002677) (002677).
Risk statement
The risk of macroeconomic environment fluctuation; The risk of recurrent outbreaks; Risk of exchange loss caused by exchange rate fluctuation; Risk of serious decline in industry terminal demand; The risk of declining prosperity of overseas exports.
