Since the second half of last year, the home appliance integrated stove sector has experienced a wave of large-scale correction. On the one hand, there are reasons for the pressure of the rise of raw materials on the performance. On the other hand, it also reflects the doubts of the market on a series of problems such as the penetration rate, average price and competition pattern of the integrated stove industry.
In this report, from the perspective of objective data and logical deduction, we try to focus on discussing and answering the above industry questions:
For the issue of industry penetration, we believe that the increase of penetration is an irreversible strong logic. Since 2015, the integrated stove industry has achieved an increase of penetration ranging from 0.5-2pct for seven consecutive years. Even now, the industry penetration has just reached about 12-15%, which is relatively certain in terms of trend continuity and upward space;
For the average price of the industry, the average price of the industry in all channels increased by about 10% year-on-year in 2021, which was mainly driven by the optimization of product structure. The proportion of integrated sales of steaming and baking in 2021q4 industry increased by 13pct to 34.6%. If the price structure of 21q4 was continued in 2022, the average price of 2022 could be improved by 7% year-on-year, and the driving force for the increase of average price of the industry was relatively “rigid”;
For the competition pattern, it is precisely because of the good industry and high prosperity that new entrants will be attracted. The entry of head enterprises will first bring the improvement of market education of the category, which is positive for the improvement of penetration and the expansion of the industry. At the same time, we expect that the industry competition pattern will gradually begin to precipitate this year and next, and the enterprises will be excellent α It will lead itself to achieve faster growth than the industry.
Therefore, based on the above reasons, we are optimistic about the continuation of integrated kitchen view, the trend of average price increase and the potential of excellent companies to continue to grow at a high level.
It is suggested to focus on the target of expected profit growth and valuation mismatch from the perspective of PEG, and the layout is expected to grow into a leading enterprise in the long term. It is recommended to recommend Marssenger Kitchenware Co.Ltd(300894) , Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) , and Zhejiang Sanfer Electric Co.Ltd(605336) , Zhejiang Meida Industrial Co.Ltd(002677) .
