Key investment points:
Market review: the home appliance (CITIC) industry index fell 3.50% this week, and the overall performance was poor. The weekly increase ranked 28th in the CITIC primary industry index, losing 1.82 percentage points to the CSI 300 index in the same period. This week, the electronics industry performed poorly, all outperforming the CSI 300 index, of which the kitchen electricity sector index fell by more than 5%. In terms of individual stocks, only 26 stocks in the home appliance (CITIC) industry recorded positive returns this week, accounting for about 33%, and only 2 stocks increased by more than 5% this week, namely Zhejiang Goldensea Hi-Tech Co.Ltd(603311) and Changhong Meiling Co.Ltd(000521) ; 50 stocks recorded negative returns, accounting for about 63%, 11 with a weekly decline of more than 5% and 2 with a weekly decline of more than 10%. Valuation: as of March 4, 2022, the overall PE (TTM) of the home appliance (CITIC) industry was about 16.55 times, down 3.52% from last Friday, lower than the average valuation level of the industry since 2017; The ratio of the overall PE (TTM) of the home appliance (CITIC) industry to the Shanghai and Shenzhen 300pe (TTM) was 1.33 times, down from the Fifth Ring ratio last week and lower than the average relative valuation of the industry since 2017.
Industry operation data: in the 9th week of 2022, everyone's offline performance exceeded that of online, the sales performance of clothes dryers remained bright, and the sales volume doubled in all channels; The sales performance of most major kitchen electric appliances was good, the offline sales of dishwashers, integrated stoves and kitchen electric packages doubled, and the online sales of only disinfection cabinet electric water heaters decreased year-on-year; Most of the small electric appliances in the kitchen performed poorly, and the sales of online electric steamers increased better; The offline performance of environmental health appliances far exceeded that of online appliances. Affected by the cold air, the sales volume of electric heating in all channels increased significantly year-on-year.
Industry perspective: maintain the recommended rating of the industry. On March 5, the fifth session of the 13th National People's Congress opened. The government still maintained a supportive attitude towards the home appliance industry and encouraged local governments to carry out green smart home appliances to the countryside and trade in the old for the new. In the last round, many household appliances have exceeded the safe service life of the products. Therefore, the government has encouraged and advocated household appliances to the countryside for several consecutive years to ensure safety and stimulate domestic demand. At present, the sinking home appliance market accounts for more than 30% of China's overall home appliance market, and the scale growth rate exceeds the overall national level. With the development of social economy and the improvement of living standards, consumers' quality and demand for household appliances are changing day by day. Green household appliances and smart household appliances have become the key words of household appliances renewal, and the high-end of rural household appliances has also begun. With the improvement of rural logistics and network facilities and the transformation of consumption capacity and concept, the sinking market will become an important force for China's household appliance industry to return to the upward trend. It is suggested to pay attention to the three leading household appliances with perfect channel layout, great brand influence, excellent product quality and strong high-end strength: Midea Group Co.Ltd(000333) ( Midea Group Co.Ltd(000333) ), Haier Smart Home Co.Ltd(600690) ( Haier Smart Home Co.Ltd(600690) ). In addition, new products such as integrated stove dishwashers continue to perform well. It is recommended to pay attention to relevant enterprises, such as offline traditional integrated stove leader Zhejiang Meida Industrial Co.Ltd(002677) ( Zhejiang Meida Industrial Co.Ltd(002677) ), and Zhejiang Sanfer Electric Co.Ltd(605336) ( Zhejiang Sanfer Electric Co.Ltd(605336) ) with gradually released capacity and high valuation cost performance.
Risk tips: macroeconomic fluctuation risk, epidemic spread risk, upstream raw material price fluctuation risk, exchange loss risk caused by exchange rate fluctuation, policy change risk, etc.
