Key investment points:
Market review: the home appliance (CITIC) industry index fell 7.50% this week, with poor performance. The weekly increase ranked 29th in the first-class industry index of CITIC, 3.27 percentage points lower than the CSI 300 index in the same period. This week, the electronics industry performed poorly, all underperforming the CSI 300 index, and only the small household appliance sector index fell by less than 5%. In terms of individual stocks: the number of individual stocks rising in the home appliance (CITIC) industry this week continued to decrease compared with last week, and the profit-making effect was poor. Only 10 stocks recorded positive earnings, accounting for about 13%, and only one with a weekly increase of more than 5%, which was Wuxi Hodgen Technology Co.Ltd(300279) (+ 11.71%); 68 stocks recorded negative returns, accounting for about 86%. The number of stocks with a weekly decline of more than 5% was as high as 41, and 7 stocks with a weekly decline of more than 10%. Valuation: as of March 11, 2022, the overall PE (TTM) of the home appliance (CITIC) industry was about 15.33 times, down 7.39% 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 1.28 times, down 3.51% from the Fifth Ring ratio last week, lower than the average relative valuation of the industry since 2017.
Industry operation data: in the 10th week of 2022, the overall performance of large household appliances offline is still better than that of online, the sales volume of clothes dryers offline has increased significantly year-on-year, and only washing and drying suits in the online market have performed well; Kitchen power: integrated stove dishwasher performs well in all channels, the online performance of other categories is better than offline, and the offline sales are mostly down year-on-year; Kitchen small electricity: Wuxi Online Offline Communication Information Technology Co.Ltd(300959) performance is relatively poor, the online sales volume of electric steamer maintains positive growth, and the year-on-year decline of offline sales is reduced; Environmental health appliances: the performance of most categories is poor in all channels, and the offline sales of floor sweeping Siasun Robot&Automation Co.Ltd(300024) and electric iron are growing.
Industry perspective: maintain the recommended rating of the industry. Under the GDP growth target of 5.5%, the tone of focusing on stability and seeking progress in stability remains unchanged. As an important part of consumption, the household appliance industry is expected to benefit from the consumption stimulus policy. From the secondary market: the CITIC index of home appliances fell for six consecutive weeks, breaking the annual line this week, and the sentiment of the sector is relatively low; A long shadow line will be received this week. If it can stabilize above the annual line in the next few weeks, we can pay more attention. From the perspective of categories: the performance of household appliances is relatively stable, and emerging categories such as clothes dryers remain hot. We can pay attention to Haier Smart Home Co.Ltd(600690) ( Haier Smart Home Co.Ltd(600690) ) with mature high-end brands and newly launched smart life appliance industry platform; Midea Group Co.Ltd(000333) ( Midea Group Co.Ltd(000333) ) with diversified business, scientific and technological strength and brand strength. In terms of kitchen appliances, the emerging categories of kitchen appliances such as integrated stoves and dishwashers still perform well. It is recommended to pay attention to the traditional offline integrated stove leader Zhejiang Meida Industrial Co.Ltd(002677) ( Zhejiang Meida Industrial Co.Ltd(002677) ).
Risk tips: macroeconomic fluctuation risk, price war risk caused by intensified industry competition, epidemic risk, upstream raw material price fluctuation risk, policy change risk, etc.
