Why promote home appliance recycling? With the growth of population and the continuous improvement of the penetration rate of household appliances, the volume of household electricity is gradually increasing. In the context of the double carbon policy, in order to achieve energy conservation and emission reduction and gradually promote energy efficiency upgrading in the household appliance industry, we expect that if common household appliances such as air and ice washing can achieve comprehensive energy efficiency upgrading and use green household appliances in the future, residents’ domestic electricity consumption will be reduced by at least 10%. The upgrading of energy efficiency and the aging of products have accelerated the upgrading of products, and the necessity of recycling household appliances has gradually emerged: 1) if waste household appliances are not properly handled, they will pollute and harm the environment and human body; 2) Waste household appliances can be reused after recycling; 3) In addition, a perfect recycling system can reduce the difficulty of dealing with garbage when consumers have renewal demand, so as to promote consumers to actively update household appliances and drive household appliance consumption demand. If the replacement cycle of air conditioning is shortened from 10 years to 9 years, the consumption demand of air conditioning is expected to increase by 7% in 2022.
The top-level system design is gradually completed, and the home appliance recycling industry has broad prospects. From the implementation measures for replacing old household appliances with new ones in 2008 to the EPR system covering all links of design, procurement, manufacturing, logistics, recycling and treatment, China has also established a waste electrical and electronic product treatment fund to refine the management of producers, recyclers and disassemblers. China’s household appliance recycling system and relevant rules have been basically improved. The industrial scale of single recycling link has exceeded 25 billion yuan, and the consumption scale of dismantling and driving renewal in the middle and lower reaches of the industrial chain is expected to exceed 100 billion yuan.
Dismantling the industrial chain: which links will benefit?
Opening up the recycling channels of household appliances: Platform + enterprise collaborative promotion: comprehensive e-commerce platforms such as jd.com, tmall.com and Suning can directly exchange the old for the new to offset the price of new household appliances when purchasing household appliances, and then the platform partners can collect the old household appliances on the door; Some enterprises are also directly involved in the trade in activities. Brands such as Chengdu Xgimi Technology Co.Ltd(688696) , Ecovacs Robotics Co.Ltd(603486) and others have opened the trade in channel on the official website.
The leader chooses the “self Collection + self disassembly + self use” mode: among downstream disassembly enterprises, third-party professional disassembly companies such as Tus Environmental Science And Technology Development Co.Ltd(000826) , China Resourcesand Environment Co.Ltd(600217) have built a mature and complete system of disassembly, sales and reuse. In addition, some leading household appliances choose “self Collection + self disassembly + self use”. For example, Gree Electric Appliances Inc.Of Zhuhai(000651) has five subordinate recycling and dismantling companies, and Haier Smart Home Co.Ltd(600690) built China’s first green recycling industrial park will be put into operation in March this year.
Recycling and second-hand economy, everything can be reborn: many household appliances still have great use value when they are eliminated, and the second-hand economy is born from the operation. At present, a large number of comprehensive and vertical second-hand trading platforms have emerged in China, such as idle fish, turning, love recycling, etc. While realizing environmental protection, the second-hand economy provides support for consumers to try new electrical and electronic products, which can effectively promote consumption.
Investment rating: we believe that in the context of the dual carbon policy, the upgrading of household appliance energy consumption is an inevitable trend. China’s household appliance industry will enter a centralized renewal cycle. In order to better achieve the dual carbon goal and maximize resource utility, we urgently need an efficient and smooth household appliance recycling system and practical operation system. At present, China has built a complete recycling and dismantling industrial chain around the producer responsibility extension system and giving full play to the advantages of “Internet plus recycling”. In the future, the further substantive support of national policies will greatly promote the normalization of household appliance recycling. Actively pay attention to the white electricity leaders Gree Electric Appliances Inc.Of Zhuhai(000651) , Haier Smart Home Co.Ltd(600690) , and recommend Midea Group Co.Ltd(000333) , which comprehensively promote the green strategy; It is recommended to pay attention to the projection leader Chengdu Xgimi Technology Co.Ltd(688696) , which actively guides consumers to trade in old products for new ones, and the leading enterprises Siasun Robot&Automation Co.Ltd(300024) sweeping Ecovacs Robotics Co.Ltd(603486) , Beijing Roborock Technology Co.Ltd(688169) ; Pay attention to the rebirth of China’s second-hand recycling and sales platform and the professional third-party recycling and dismantling platform China Resourcesand Environment Co.Ltd(600217) .
Risk factors: the change of national subsidy policy affects recycling enterprises, the macroeconomic downturn affects household appliance consumption, the rise of raw material costs, the repeated impact of the epidemic on the market, exchange rate fluctuations, etc
