Zhou’s investment view:
1) due to the high price of raw materials for a long time, many home appliance manufacturers announced that they would increase the price of goods successively from late March. The price increase of white electricity categories such as Midea, sanwinged bird, TCL and Konka was about 5 ~ 10%, slightly less than that in the same period in 2021. Judging from the current online retail price, Midea, Gree and Haier have not made substantive price adjustment for online air-conditioning models. On the contrary, some prices are in the period of discount and promotion. According to the data of ovicloud, the online retail prices of 2022w11 air conditioners and washing machines increased slightly by 3.41/7.33% year-on-year respectively. Among kitchen appliances, the online average price of integrated stoves increased the most significantly, with a year-on-year increase of 32.09%. The average online price of refrigerator decreased by 16.56% year-on-year, and the average price of color TV also decreased. The main reason is that the price of gas-fired TV sets has increased by 94.7% year-on-year, and the price of gas-fired TV sets has increased by 19.7% year-on-year, while the price of gas-fired TV sets has increased by 19.7% year-on-year, while the price of gas-fired TV sets has increased by 19.7% year-on-year, and the price of gas-fired TV sets has increased by 19.7% year-on-year, and the price of gas-fired TV sets has increased by 19.8% year-on-year. However, in the long run, it is an inevitable trend for manufacturers to raise prices again on a large scale in order to alleviate the cost pressure of raw materials. If the price of raw materials cools down in the later stage, the profitability of home appliance manufacturers may be improved.
2) the two sessions mentioned green smart appliances going to the countryside and exchanging the old for the new. We believe that at present, the top-level system of household appliance recycling in China has been basically established, the specific subsidy policies and implementation rules have been continuously improved, and the economic value of recycling links and indirectly promoting the renewal demand of household appliances and saving electricity has exceeded 100 billion. Focus on Gree Electric Appliances Inc.Of Zhuhai(000651) , Haier Smart Home Co.Ltd(600690) , Midea Group Co.Ltd(000333) , which have dismantling enterprises and plans. In addition to being beneficial to environmental protection and improving resource utilization efficiency, the policy of home appliance recycling and trade in can also effectively promote consumers’ demand for the renewal of household appliances, improve consumers’ consumption frequency of categories with fast product promotion, pay attention to the floor sweeping Siasun Robot&Automation Co.Ltd(300024) leaders Ecovacs Robotics Co.Ltd(603486) , Beijing Roborock Technology Co.Ltd(688169) , recommend intelligent projection leaders Chengdu Xgimi Technology Co.Ltd(688696) . Pay attention to the new life of second-hand electrical and electronic product sales enterprises.
3) China’s consumer demand is sluggish, household appliance enterprises actively seek the second growth point, and the road of industrialization continues to advance. We believe that in addition to the enterprises that have made layout in globalization and high-end in advance, they can still enjoy the dividends of household appliance consumption upgrading and global brand expansion, 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 the way. China’s household appliance industrialization is 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 Midea Group Co.Ltd(000333) , Gree Electric Appliances Inc.Of Zhuhai(000651) .
Industry focus dynamic tracking:
[industry trends] in March, chase, Midea, Beijing Roborock Technology Co.Ltd(688169) , and Xiaomi successively announced the release of new cleaning appliances. At the end of February, Mofei also released the brand’s first intelligent floor washer mr4400, marking the brand’s official entry into the cleaning appliance track. We believe that after nearly two years of product education, the consumer acceptance of floor washing machines, floor sweepers Siasun Robot&Automation Co.Ltd(300024) and other products has been greatly improved, the number of new entrants in the industry has been increasing and the competition has intensified, but there is still great room for growth in the penetration rate of clean electrical circuit, and the industry space is huge. Pay attention to the cleaning appliance faucets Ecovacs Robotics Co.Ltd(603486) , Beijing Roborock Technology Co.Ltd(688169) , and pay attention to the sub brand life and cleaning appliance Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705) .
[high frequency data] repeated epidemics have closed many cities and frustrated offline consumption of household appliances. Since March, the epidemic situation in various parts of China has repeatedly led to the closure of many cities, and the production of some manufacturers has also been affected. For example, the production of Solareast Holdings Co.Ltd(603366) Jiangsu Lianyungang Port Co.Ltd(601008) bases has been stopped, and the offline channel sales of household appliances have declined sharply. According to the data of ovicloud, the offline sales of 2022w11 air and ice washing and color TV were – 37.58 / – 35.51 / – 35.5 / – 50.48% year-on-year respectively, and the offline sales of range hood / gas stove / integrated stove were – 37.09 / – 34.52 / – 26.62% year-on-year respectively. The performance of online channels is relatively stable. The online sales of air and ice washing are + 6.62 / + 19.87 / + 6.27% year-on-year respectively, while the online sales of color TV sets, range hoods and gas stoves still decline significantly. In terms of small household appliances, although the epidemic has caused residents to stay at home, the overdraft of the demand for small household appliances in the early stage still makes consumers’ demand for small household appliances weak. In March, the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) sales of small household appliances were still in a significant downward trend..
Risk factors: macroeconomic environment fluctuations, rising raw material prices, repeated outbreaks at home and abroad, exchange rate fluctuations, serious decline in market end demand, decline in export prosperity and other risks.
