Zhou’s investment view:
The capital holding degree of home appliance stocks in the North decreased slightly, and the capital paid more attention to the kitchen electricity sector. This week, the stock market value of 41 land stock appliances held by northbound funds decreased by 157 million yuan compared with last week, and Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) , Beijing Roborock Technology Co.Ltd(688169) , Hangzhou Robam Appliances Co.Ltd(002508) and others were increased, while Zhejiang Meida Industrial Co.Ltd(002677) , Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705) and others were reduced. Affected by the market risk aversion under the conflict between Russia and Ukraine, the overall northward capital holding of household appliance stocks decreased slightly. Under the influence of the recent marginal relaxation of real estate policy, the capital paid more attention to kitchen electric faucets, focusing on Hangzhou Robam Appliances Co.Ltd(002508) , Marssenger Kitchenware Co.Ltd(300894) , Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) , etc.
Referring to the development process of overseas leading household appliances, the industrialization of China’s household appliance industry is imminent. We believe that in addition to the enterprises that have made layout in globalization and high-end in advance, they can still enjoy certain dividends, and a considerable number of enterprises will accelerate the practice of industrialization. The logic behind the core lies in the obvious global comparative advantage of China’s household appliance manufacturing, with components leading the way and leading enterprises turning slowly. Our household appliance industrialization and manufacturing value revaluation are the long-term logic of the sector, focusing on Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) , Zhejiang Dun’An Artificial Environment Co.Ltd(002011) , Hiconics Eco-Energy Technology Co.Ltd(300048) , Zhenjiang Dongfang Electric Heating Technology Co.Ltd(300217) , Hangzhou Star Shuaier Electric Appliance Co.Ltd(002860) , and leading enterprises Midea Group Co.Ltd(000333) , Gree Electric Appliances Inc.Of Zhuhai(000651) .
Russia Ukraine conflict intensified, bulk prices rose, and the cost side of household appliances was under pressure in the first quarter. Actively focus on the new track with low penetration rate and high growth, while the valuation is still low and has not been deeply explored. It is suggested to focus on the high-speed intelligent toilet industry, with the target companies: Haier Smart Home Co.Ltd(600690) , Xiamen R&T Plumbing Technology Co.Ltd(002790) , Shenzhen Megmeet Electrical Co.Ltd(002851) , Huida Sanitary Ware Co.Ltd(603385) , Xiamen Solex High-Tech Industries Co.Ltd(603992) , etc.
Industry focus dynamic tracking:
Focus on the national two sessions: support the consumption of new energy vehicles, and encourage local governments to carry out green smart appliances to the countryside and trade in the old for the new. On March 5, the key work of this year in the government work report of the two sessions mentioned that it would continue to support the consumption of new energy vehicles and encourage local governments to carry out green smart appliances to the countryside and trade in old for new. We believe that the government still attaches great importance to the return of household appliances to the countryside and the exchange of old for new ones. We expect relevant departments to further strengthen relevant work, refine the recycling mode of household appliances, strengthen market supervision and standard setting, and realize the secondary growth of the stock market of durable household appliances. Focus on: Gree Electric Appliances Inc.Of Zhuhai(000651) , Midea Group Co.Ltd(000333) , Haier Smart Home Co.Ltd(600690) , Hisense Home Appliances Group Co.Ltd(000921) , Hangzhou Robam Appliances Co.Ltd(002508) , etc; Similarly, the state attaches great importance to the consumption of new energy vehicles, and the new energy vehicle market is expected to maintain a rapid expansion trend, which is conducive to the home appliance parts companies with cross-border layout of the new energy vehicle industry chain, focusing on: Zhejiang Dun’An Artificial Environment Co.Ltd(002011) , Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) , Midea Group Co.Ltd(000333) .
Focus on the national two sessions: promote the planning and construction of large-scale wind and solar power bases and their supporting regulatory power sources, and improve the consumption capacity of the power grid for renewable energy power generation. We believe that with the support of policies, the long-term prosperity of the photovoltaic and energy storage industry will not change, and the installed penetration rate of photovoltaic energy storage for household and industrial and commercial use is expected to increase rapidly, which will benefit the photovoltaic energy storage industry chain home appliance companies, focusing on: Hiconics Eco-Energy Technology Co.Ltd(300048) , Hangzhou Star Shuaier Electric Appliance Co.Ltd(002860) , Zhenjiang Dongfang Electric Heating Technology Co.Ltd(300217) , Ningbo Deye Technology Co.Ltd(605117) , Skyworth Group.
In March, the data of household air conditioning production was released, and the export production was + 13.7% year-on-year. According to industry online, the output of household air conditioning industry in March 2022 was about 17.36 million units, an increase of 3.1% over the same period last year. Among them, export output increased by 13.7% over the same period last year, reaching a new high under the high base of last year. In our opinion, with the continuous rise of raw materials, the air conditioning production in the first quarter was generally stable. It is suggested to pay attention to the substantive marginal change of follow-up real estate data and the time point when terminal demand picks up.
