Main points
This week, the household appliance sector rose by – 4.0%, of which the white electricity / Black electricity / kitchen electricity / small household appliances sector rose by – 5.4% / – 2.2% / – 1.8% / – 0.7% respectively. The overall performance of individual stocks in the sector was weak, and the Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) performance of kitchen electricity sector was good, with a weekly increase of 1.3%; The small household appliances sector Zhejiang Supor Co.Ltd(002032) , Ecovacs Robotics Co.Ltd(603486) performed well, with weekly increases of 2.9% and 5.5%. In terms of raw materials, LME copper, LME aluminum, steel and plastic prices were – 0.9%, + 1.3%, – 0.2% and + 1.8% month on month, respectively.
In 2021, the home appliance industry is facing great challenges from the external environment. The price of upstream raw materials rises, the global shipping capacity is tight, and the overall performance of the sector is under pressure under the influence of multiple factors of supply and demand. Standing at the current time point, the annual report season is coming, and pay attention to the important opportunity of reversal at the bottom of household appliances. From the perspective of companies that have disclosed the performance express, the Chengdu Xgimi Technology Co.Ltd(688696) performance of emerging category projectors significantly exceeded expectations, and the growth rates of revenue and net profit attributable to parent company in 2021 reached 43% and 82% respectively; The growth rate of Shenzhen Breo Technology Co.Ltd(688793) revenue and net profit attributable to the parent company of massage instrument were 44% and 29% respectively. Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705) , Beijing Roborock Technology Co.Ltd(688169) and Beijing Roborock Technology Co.Ltd(688169) are greatly affected by shipping, and their performance is obviously under pressure. The growth rate of net profit attributable to the parent company is – 29% and 2% respectively. The scale of Hangzhou Robam Appliances Co.Ltd(002508) revenue of kitchen electric faucet exceeded 10 billion, and the net profit attributable to the parent company after full provision for bad debts was – 20% year-on-year, with strong certainty of subsequent profit improvement.
Investment advice
Looking forward to 2022, the track with strong certainty is preferred among many uncertain factors. It is suggested to grasp two main lines: 1) white electric track with continuous repair of demand and profit. 2) Sweeper track and integrated stove track with both certainty and growth. Intelligent cleaning appliances are in line with consumers’ pursuit of quality life and hands-free in the third consumption era. Floor sweeping and mopping products are expected to become the rigid needs of families. Continue to recommend Ecovacs Robotics Co.Ltd(603486) , accurately grasp the needs of consumers, adhere to independent research and development, hold high and fight high, and have excellent product and brand power. It is recommended to pay attention to the strong strength of product and technological innovation, speed up the replenishment of marketing weaknesses, and is expected to usher in Beijing Roborock Technology Co.Ltd(688169) . The logic of improving the penetration rate of integrated stoves is continuously verified, and Marssenger Kitchenware Co.Ltd(300894) , which has long-term vision of leading strategic pattern, strong brand marketing and high-end product positioning and rapid expansion of scale, is continuously recommended. It is recommended to pay attention to the integrated stove leader Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) , which has strong product power and continues to reflect the effectiveness of the change of few owners. Small household appliances sector Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705) export profitability improvement and domestic sales growth increase with high certainty. The growth rate of domestic sales in 21q4 rebounded, and the export sales declined due to the impact of shipping. It is expected that the continuous promotion of domestic sales and the expansion of categories will drive the continuous growth of domestic sales revenue. After the mitigation of shipping, the demand for overseas orders is expected to be released, and 22q1 is expected to usher in a performance inflection point. The current valuation level is significantly low, so it is recommended to pay active attention.
Risk tips
The risk of rising raw material prices, the risk of less than expected demand, the risk of repeated outbreaks, the impact of exchange rate fluctuations, and the risk of chip out of stock and rising prices.
