Beneficial object
Brands of cleaning appliances: Beijing Roborock Technology Co.Ltd(688169) , Ecovacs Robotics Co.Ltd(603486) , Anker Innovations Technology Co.Ltd(300866) , JS global life
OEM of cleaning appliances: Ningbo Dechang Electrical Machinery Made Co.Ltd(605555) , Kingclean Electric Co.Ltd(603355) , Fujia Co., Ltd
Regaining import tariff exemption from the United States is beneficial to the export industrial chain of household appliances
On March 23, 2022 local time, the office of the US Trade Representative (USTR) issued a statement announcing the re exemption of tariffs on 352 goods imported from China. The new provisions will apply to goods imported from China between October 12, 2021 and December 31, 2022. The US import tariff exemption list includes 25 optional consumer goods such as vacuum cleaner, floor sweeping Siasun Robot&Automation Co.Ltd(300024) and home appliance parts. We believe that the re exemption of the tariff on clean appliances shows that the acceptance of Chinese enterprises in the United States has been improved, so that brand companies have more room to promote sales at the terminal, release the renewal demand under the background of product upgrading, superimpose the trend of integrating the supply chain of international brands of clean appliances, and the leading OEM enterprises are also expected to harvest more downstream orders.
Tariff exemption or improve the prosperity of the clean electrical appliance industry, and the brand OEM benefits both
Ningbo Dechang Electrical Machinery Made Co.Ltd(605555) : the vacuum cleaner is basically stable, and it is optimistic about the large amount of domestic alternative tuyeres for automobile motors. (1) The company’s vacuum cleaner business is deeply bound to major customers. TTI maintains steady growth, and tariff exemption may improve the downstream prosperity. In the follow-up, it is optimistic that the company will continue to expand new categories such as garden tools + international major customers. From the perspective of cleaning appliances involved in this tariff exemption, the company’s vacuum cleaner revenue in the US market accounts for 50% of the vacuum cleaner revenue +, and it is estimated that the vacuum cleaner revenue will account for 80% in 2021. In 2022, the income of vacuum cleaner OEM is expected to increase by 10% +. (2) In terms of diversified small household appliances, the growth rate has been rapid since 2020, and the company is optimistic about the development of new categories such as electric fans and humidifiers. It is estimated that diversified small household appliances will increase by nearly 40% in 2022. (3) Compared with Japanese electric products, the company’s automobile motors have cost-effective advantages. It is optimistic that the company will develop Tier1 customers in China, such as Nextel and ZF, under the domestic alternative tuyere. It is expected that the project will be mass produced in 2022. It is estimated that the revenue of automobile motor will be 50-100 million in 2022. Maintain the profit forecast. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 3.2/4.1/600 million yuan, corresponding to EPS of 1.68/2.15/3.17 yuan respectively, and the corresponding PE of the current stock price is 18.3/14.3/9.7 times, maintaining the “buy” rating.
Beijing Roborock Technology Co.Ltd(688169) : the launch of new products drives the recovery of export sales in Q2 and is optimistic about quarterly improvement. The net interest rate of Q1 is expected to increase month on month. From the perspective of clean electrical appliances involved in this tariff exemption, it is estimated that the company’s sweeping Siasun Robot&Automation Co.Ltd(300024) revenue in the U.S. market in 2021 will account for about 10%. (1) In terms of export sales, Q2 has entered the low base of export sales. Driven by the listing of new s7maxv series and cost-effective q series, Q2 is optimistic about the recovery of export sales and maintain quarterly improvement. We expect that shark, stone, Ecovacs Robotics Co.Ltd(603486) , eufy and other leading brands will jointly promote medium and high-end LDS products in 2022, and the company’s market share is expected to increase. (2) In terms of domestic sales, the marketing launch has achieved remarkable results, and China’s market share has increased steadily since September 2021. In February 2022, the company’s Alibaba channel Gmv market accounted for 15.5%, an increase of 8.0pcts year-on-year. Driven by the new products of g10s series and T8 series of all-round base station sweepers in China, it is expected that the domestic sales will increase both in volume and price in 2022. 2021q4 has a large investment in promotion expenses. With the continuation of the investment effect, the domestic sales in 2022q1 is expected to continue to more than double, and the net interest rate in 2022q1 is expected to improve month on month. Maintain the profit forecast. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 1.40/17.8/2.38 billion, EPS will be RMB 21.0/26.7/35.7, and the current share price corresponding to PE will be 27.1/21.3/15.9 times, maintaining the “buy” rating.
Risk warning: industry competition intensifies; Rising prices of raw materials; The risk of maritime transport capacity has increased.
