Summary of this issue:
The household appliance industry has the dual attribute of “consumption + manufacturing”. For a long time, the analysis and research of home appliance industry mostly starts from the framework of “channel + demand”, while ignoring the manufacturing attributes of home appliances. However, under the new global competitive environment and the background of industrial changes, the position of home appliance manufacturing industry chain has been significantly improved: 1) Comparative Advantage: home appliance manufacturing is one of the few industries with significant comparative advantage in China. 2) Spillover capacity of manufacturing and channels: the strong competitiveness accumulated in the household appliance industry chain for many years will be realized in a higher prosperity track.
From the perspective of big manufacturing: industrialization is moving towards the front stage, and the industrial chain is facing value revaluation. The transformation of global energy structure and the double carbon policy have brought Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) opportunities. Chinese household electrical appliance enterprises have spilled over to high-end industrial manufacturing tracks such as photovoltaic, new energy vehicle parts and medical treatment with their accumulated manufacturing, R & D and channel advantages for many years. Parts first, and the leader turns slowly. The leader transformation of many home appliance subdivision parts has achieved performance, such as Ningbo Deye Technology Co.Ltd(605117) , Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) . Skyworth Group, Midea Group Co.Ltd(000333) , Gree Electric Appliances Inc.Of Zhuhai(000651) and other leading enterprises of the whole machine have also begun to enter the stage of substantive implementation. For a long time, there has been a huge valuation gap between home appliance manufacturing and other industries in the industrial manufacturing sector, and the industrial chain is facing the opportunity of comprehensive value revaluation.
Perspective of big consumption: bottom of valuation and fundamentals, focusing on enterprises with alpha and new tracks. By the end of 2021, the continuous real estate and consumption policies will underpin the valuation of kitchen and bathroom, small power and white power in the household appliance sector. From the perspective of performance, the current situation of weak consumption still needs to be driven by the overall economy and stimulated by the implementation of substantive subsidy policies. Looking forward to the future, we continue to be optimistic about emerging categories with rapid penetration, such as integrated stove, intelligent micro investment, sweeping Siasun Robot&Automation Co.Ltd(300024) , intelligent bathroom and other tracks.
Investment suggestion and industry rating: looking forward to 2022, starting from the dual attribute of “consumption + manufacturing” of household appliances, we are strongly optimistic about plate investment opportunities.
1) Revaluation of manufacturing value: focus on the leading enterprises Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) , Zhejiang Dun’An Artificial Environment Co.Ltd(002011) , Ningbo Deye Technology Co.Ltd(605117) , Zhenjiang Dongfang Electric Heating Technology Co.Ltd(300217) , Hangzhou Star Shuaier Electric Appliance Co.Ltd(002860) of subdivided parts with manufacturing power spillover, Skyworth Group, a complete machine enterprise that takes the lead in moving towards distributed photovoltaic, and Midea Group Co.Ltd(000333) , Gree Electric Appliances Inc.Of Zhuhai(000651) in b-end businesses such as medical devices, new energy vehicles, photovoltaic energy storage, etc.
2) Consumption valuation, fundamental bottom exploration and repair, and explore enterprises and new tracks with alpha: pay attention to the repair of kitchen and bathroom, small power and white power sector leaders with good flexibility, and pay attention to Hangzhou Robam Appliances Co.Ltd(002508) , Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705) , Bear Electric Appliance Co.Ltd(002959) , Gree Electric Appliances Inc.Of Zhuhai(000651) , Midea Group Co.Ltd(000333) ; Continue to be optimistic about the growth opportunities of emerging tracks, and actively pay attention to industry leaders Zhejiang Meida Industrial Co.Ltd(002677) , Marssenger Kitchenware Co.Ltd(300894) , Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) ; In terms of sweeping Siasun Robot&Automation Co.Ltd(300024) , actively pay attention to Ecovacs Robotics Co.Ltd(603486) , Beijing Roborock Technology Co.Ltd(688169) of the global layout; Intelligent projection and laser TV actively pay attention to Chengdu Xgimi Technology Co.Ltd(688696) , Hisense Visual Technology Co.Ltd(600060) ; Portable projector faucet Shenzhen Breo Technology Co.Ltd(688793) is recommended; Focus on Intelligent bathroom enterprises Xiamen R&T Plumbing Technology Co.Ltd(002790) .
Risk factors: the macroeconomic growth rate is lower than expected, resulting in weak end consumer demand and repeated epidemic affecting the normal production of enterprises; Policy risk: the decline of subsidies in photovoltaic, new energy and other industries leads to the reduction of upstream orders, which affects the development of transformation enterprises less than expected; The cost of raw materials continues to rise, product education is less than expected, and the launch of new products is less than expected.
