\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 061 Hhc Changzhou Corp(301061) )
Market scale and development trend:
\u3000\u30001. Smart electric sofas and electric beds have a blue ocean market of 100 billion yuan, and the industry concentration is expected to increase. The growth rate of functional sofa scale in the United States is steady, from US $5.9 billion in 2016 to US $7.285 billion in 2019, with CAGR of 7.28%. It is predicted that the scale will reach US $9.094 billion in 2024; The global smart electric bed market grew from US $1.9 billion in 2018 to US $4.3 billion in 2021, with a CAGR of 31.29%. China’s market penetration is still low, and China’s smart home industry is expected to grow rapidly. It is expected that the market scale of China’s smart electric sofa and electric bed will reach 14.82 billion yuan and 3.67 billion yuan respectively in 2025.
\u3000\u30002. With the refinement of consumers’ demand for smart home, the continuous improvement of consumer education, as well as the demand for home replacement and improvement, the industry demand is expected to continue to increase. The development time of smart home industry is still short, the income scale of China’s leading enterprises is at a low level, and the concentration is expected to increase in the future. Overseas leading home retailers have a high market share and maintain growth in performance. They are expected to grow together with Chinese cooperative enterprises.
Potential catalyst: development of new foreign customers and increase of customer share; The volume and price of products increased, and the profitability continued to grow; Smooth development of Chinese market, etc.
Market divergence: how big is the demand of foreign market; Whether the competition in the expanded category is intensified; Whether the core competitiveness of R & D innovation can continue; How to develop the Chinese market.
Risk warning: industry competition intensifies; China’s market development is less than expected; Price fluctuation of raw materials; Global covid-19 epidemic recurrence risk, etc.
