Haier Smart Home Co.Ltd(600690) (600690)
Report guide
On December 15, 2021, Haier Smart Home Co.Ltd(600690) announced that Haier Smart Home Co.Ltd(600690) plans to increase capital by 3.5 billion yuan to Qingdao Haier smart life appliance Co., Ltd. (hereinafter referred to as "life appliance company") and establish a smart life appliance industry platform.
Key investment points
The company established a domestic appliance industry platform to build a first-class strategic unit of the company
1) Haier Smart Home Co.Ltd(600690) focus on smart household appliances business, starting from cleaning products, emerging kitchen products, smart home products and other emerging network devices, and comprehensively create four ecological scenes of healthy cooking, whole house cleaning, comfortable environment and smart care. The capital increase fund is mainly used for the R & D, manufacturing, sales and service of household appliances, as well as the construction of digital operation capacity and talent team. 2) The company has established a first-class strategic unit of the smart home appliances division, and Mr. Xie Juzhi, vice president of Haier Group, has served as the head of the smart home appliances division, which is enough to reflect the company's attention in the field of smart home appliances.
Achieve internal collaboration and supplement smart home life scenarios
1) Haier's household appliances industry platform is an important part of the company's family strategy and a supplement to the three winged bird's home life scene. As of December 2021, the company has opened 1073 three winged bird stores across the country. 2) The company will make use of the overall resources to provide support for general technology R & D, marketing network and digital operation for life appliance companies, realize the synergy between household appliances and small household appliances through the three winged bird platform, and jointly form a smart home network to create an all-round smart home life scene. 3) Haier smart home appliance industry platform will share the company's advantages in R & D, brand, marketing and service.
The status of emerging categories has improved, providing new impetus for the growth of the company
1) Under the trend of consumption upgrading, we expect that users' requirements for scene cleanliness, comfort and personal care will increase, and the domestic electrical appliance market will expand rapidly. Taking vacuum cleaners as an example, as of 21w48, the cumulative online retail sales of vacuum cleaners were + 31.98% year-on-year, The cumulative offline retail sales increased by + 12.66% year-on-year (ovicloud). 2) we believe that as the leader of traditional household appliances, the company has strong brand advantages, and its R & D efforts are inclined to emerging categories to improve its product competitiveness. At the same time, the company provides drainage for household appliances through the three wing bird platform, and household appliances are expected to become an important performance growth point of the company.
Profit forecast and valuation
Looking forward to this year, in terms of domestic sales, with the promotion of systematization and the development of kitchen electricity and air conditioning, Casati will continue its high growth momentum and lead the growth of revenue; At the same time, the whole process efficiency will be improved through digital transformation, and the profitability of domestic sales will be further improved. Overseas, the company improves efficiency through high-end licensing and operation, and the overseas business performance is worth looking forward to. We believe that in the next few years, the company's global operation will usher in a harvest period, the management of domestic and foreign sales business will be improved, the operation efficiency will be improved, and the profitability will be continuously improved. At the same time, the company's long-term brand layout through smart family and three winged bird scene has a promising future. To sum up, the company's EPS is expected to be 1.37/1.59/1.84 yuan in 21-23 years, and the corresponding PE is 19x / 16x / 13X respectively, maintaining the buy rating.
Risk statement
The price rise of raw materials exceeded expectations; The demand is less than expected; Intensified market competition
