Key investment points:
Market review: the home appliance (CITIC) industry index fell 3.96% this week, and the overall performance was poor. The weekly increase ranked 25th in the CITIC primary industry index, losing 2.29 percentage points to the CSI 300 index in the same period. This week, the performance of the electronics industry was generally poor, and the white electricity sector fell more. Only the lighting electrician and other indexes and the small household appliance II index outperformed the Shanghai and Shenzhen 300 index. In terms of individual stocks: individual stocks in the home appliance (CITIC) industry rose less and fell more this week. Only 20 stocks recorded positive earnings, accounting for about 25%, and only one with a weekly increase of more than 5%; 56 stocks recorded negative returns, accounting for about 71%, 9 with a weekly decline of more than 5% and 1 with a weekly decline of more than 10%. Valuation: as of February 25, 2022, the overall PE (TTM) of the home appliance (CITIC) industry was about 17.16 times, down 3.59% from last Friday, lower than the average valuation level of the industry since 2017; The ratio of overall PE (TTM) of home appliance (CITIC) industry to Shanghai and Shenzhen 300pe (TTM) is 1.36 times, which is lower than the average relative valuation level of the industry since 2017.
Industry operation data: in the 8th week of 2022, everyone performed better on the wire than offline, and the sales volume of clothes dryers maintained high growth in all channels; The sales volume of dishwashers and integrated stoves maintained omni-channel growth; Kitchen small electricity Wuxi Online Offline Communication Information Technology Co.Ltd(300959) performance differentiation, offline sales generally decline, online sales are mostly positive growth; The overall performance of environmental health appliances was average, and the sales volume of floor sweeping Siasun Robot&Automation Co.Ltd(300024) all channels decreased year-on-year.
Industry perspective: maintain the recommended rating of the industry. At present, the local two sessions have ended and the national two sessions are about to open. Under the foundation of steady growth, expanding domestic demand and promoting consumption, with the continuation of carbon neutralization policy, many places across the country proposed to promote smart appliances and green appliances to the countryside and further carry out the activity of exchanging old appliances for new ones. Advocating the diversification of rural household appliance channel business and the high-end of rural products is conducive to promoting rural consumption. Therefore, we judge that key words such as smart appliances, green appliances, high-end appliances to the countryside and diversified channels of rural household appliances are expected to become the focus of the 2022 two sessions in the household appliance industry. Considering the brand recognition of the three leading household electrical appliances, as well as the excellent intelligent manufacturing level, premium ability of high-end products, continuously improved channel layout, corporate governance level and other factors, the probability of leading household electrical appliance enterprises benefiting from the two sessions to promote consumption is relatively obvious. It is suggested to actively pay attention to Midea Group Co.Ltd(000333) ( Midea Group Co.Ltd(000333) ), Haier Smart Home Co.Ltd(600690) ( Haier Smart Home Co.Ltd(600690) ), Gree Electric Appliances Inc.Of Zhuhai(000651) ( Gree Electric Appliances Inc.Of Zhuhai(000651) ). In addition, it is recommended that the emerging home appliance industry continue to improve its profitability in the fourth quarter, and the revenue of smart home appliance industry continues to improve.
Risk tips: epidemic risk, macroeconomic fluctuation risk, upstream raw material price fluctuation risk, exchange loss risk caused by exchange rate fluctuation, market risk caused by trade friction and tariff barriers, policy change risk, etc.
