Core view
Overview of convertible bonds
The issuance of convertible bonds for household appliances is mainly concentrated in small household appliance companies and parts companies. At present, the issuance scale of convertible bonds for household appliances totals 14.49 billion yuan, and the survival scale is 4.682 billion yuan. From the perspective of investment direction, the fund-raising of household appliance enterprises is mostly used for new production capacity, intelligent upgrading and expansion and supplementary working capital. Combined with the current fundamentals of household appliance enterprises, we believe that Sanhua convertible bonds, Aojia convertible bonds and Rongtai convertible bonds have good fundamentals; COVO convertible bonds and Marssenger Kitchenware Co.Ltd(300894) of the issuance plan, as the subdivision leader of the high boom track, have strong comprehensive strength, and we also suggest paying attention to it.
Kewo Convertible Bond: the leader of clean electrical appliances, and product innovation leads the development
Ecovacs Robotics Co.Ltd(603486) is a household appliance company mainly engaged in cleaning appliances. It owns two brands Ecovacs Robotics Co.Ltd(603486) and Tianke, and occupies an obvious dominant share in the Chinese market with its outstanding product strength. Among them, the market share of floor sweeper is maintained at more than 40%, and the market share of floor washer is more than half. The company raised funds through convertible bonds, continued to strengthen R & D strength and improve brand overseas operation, and further consolidated its competitive advantage. As a kind of just needed products, clean electrical appliances have broad development space in the future. At present, it is in the stage of rapid increase in penetration. In the first three quarters of 2021, the online retail sales of clean appliances reached 15.26 billion yuan, a year-on-year increase of 34.32%. As a leading enterprise of clean electrical appliances, the company has advanced R & D, outstanding product strength, perfect brand matrix and steady global market expansion, which is expected to fully benefit from the industry dividend.
Sanhua convertible bonds: leading parts, refrigeration + steam zero double round growth
As a leading enterprise of home appliance parts, the company has obvious comprehensive competitive advantages. In terms of refrigeration business, the company has absolute advantages in the field of main refrigeration parts such as electronic expansion valve, four-way valve and stop valve, with the first market share in the industry and a stable leading position. Benefiting from the implementation of the new energy efficiency standards for air conditioning, the penetration rate of electronic expansion valve is expected to be further improved in the future. As a leading enterprise of refrigeration parts, the company is expected to fully benefit from this. Based on the traditional refrigeration business, the company has extended to the auto parts business. The company started from parts and gradually developed to components and subsystems, and successfully cooperated with well-known automobile. Driven by the two core businesses of refrigeration + steam zero, the company is expected to develop steadily.
Aojia Convertible Bond: the leader of massage industry, with coordinated development of diversified businesses
The company mainly engaged in massage chairs, massage small appliances and other products. In the early stage, it mainly engaged in ODM OEM business. Later, the company gradually developed its own brand business through acquisition and other means. At present, the company has seven independent brands such as Ogawa and Fuji, which are distributed in three core markets in Asia, North America and Europe. On the basis of the original massage business, it has diversified and expanded to healthy environment business and home medical business. Diversified businesses have contributed new growth points to the company and consolidated the company’s anti risk ability. Under the influence of Xiamen epidemic in September, the company’s factory production and shipment were limited, and the company’s short-term business performance was suppressed due to the shortage of shipping. In the long run, as a leading enterprise in the massage industry, the company will still fully benefit from the improvement of massage chair penetration. We are still optimistic about the company’s long-term business performance.
Rongtai Convertible Bond: massage chair high-quality enterprise, domestic and foreign sales force together
The company’s main products are massage chairs and massage small appliances. In terms of domestic sales, the company fully covers middle-aged consumers through the dual brand operation of Rongtai + momoda, and continues to benefit from the improvement of massage chair penetration. In addition, on the basis of massage chair business, the company also gradually develops massage small electricity business, which is used for drainage to help improve the sales of massage chairs. In terms of export, the company mainly develops ODM OEM business. The company has a close relationship with bodyfriend, the largest customer, and its orders have maintained a stable growth. On this basis, the company actively expanded overseas customers and achieved significant growth in the U.S. market in the first three quarters of 2021. The company’s domestic and foreign sales business has developed steadily and the operation continues to be good. In the short term, dragged down by the shared massage business, the company’s performance still has room for optimization. As the disposal of the company’s shared massage business is coming to an end, the adverse factors that suppress the company’s performance are exhausted, and the company’s valuation is expected to rebound.
Marssenger Kitchenware Co.Ltd(300894) : leading enterprises of integrated stoves, raising funds to expand production and accelerate take-off
The company is mainly engaged in kitchen electric products focusing on integrated stoves. Under the background of accelerating the penetration of integrated stove products, the company fully grasped the dividend of industry development and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated development. Up to now, the company’s online listing rate has ranked first. From September to November, the company’s product line listing rate was 25.2% / 26.56% / 24.07% respectively, with a stable leading position; The scale of offline stores expanded rapidly. By the end of September 2021, the company had nearly 2000 offline distribution stores. The company raised funds and expanded its production through convertible bonds. With the implementation and operation of the project, it is expected that the company’s competitive advantage will be further consolidated.
Risk tip: the risk of sharp fluctuations in the price of raw materials, the expected risk of not pushing forward the convertible bond project, and the risk of sharp fluctuations in the RMB exchange rate.
