Market review: the home appliance (CITIC) industry index performed generally this week, continuing to fall by 2.44%. The weekly increase ranked 21st in the CITIC primary industry index, losing 0.30 percentage points to the CSI 300 index in the same period. In the subdivided industries, the performance of the small household appliance sector has improved, and only the white electricity sector has lost the CSI 300 index. In terms of individual stocks: the performance of individual stocks in the home appliance (CITIC) industry continued to improve this week, with 33 stocks recording positive earnings, accounting for about 42%, 7 with a weekly increase of more than 5% and 3 with a weekly increase of more than 10%; 42 stocks recorded negative returns, accounting for about 53%. There were 5 stocks with a weekly decline of more than 5%, and only one stock had a weekly decline of more than 10%. Valuation: as of March 25, 2022, the overall PE (TTM) of the home appliance (CITIC) industry was about 14.85 times, down 2.35% from last Friday, lower than the average valuation level of the industry since 2017; The ratio of the overall PE (TTM) of the home appliance (CITIC) industry to the Shanghai and Shenzhen 300pe (TTM) was 1.27 times, down 0.81% from the Fifth Ring ratio last week, lower than the average relative valuation of the industry since 2017.
Industry operation data: in the 12th week of 2022, the online performance of ice washing was better than that of offline, the offline performance of clothes dryer was better, and the online sales of washing and drying suits rose sharply year-on-year. The offline and online performance of large kitchen wires is general. Only the sales volume of dishwasher integrated stove maintains omni-channel growth, and the online performance of other categories is relatively good. The Wuxi Online Offline Communication Information Technology Co.Ltd(300959) performance of small electric appliances in the kitchen is relatively poor, and only the online sales of electric steamers maintain a positive growth. Most of the categories of environmental health appliances performed poorly in all channels, while cleaning appliances and sweeping Siasun Robot&Automation Co.Ltd(300024) performed relatively well. The sales volume of all channels increased year-on-year, but the sales volume decreased.
Industry perspective: maintain the recommended rating of the industry. At present, the performance of the secondary market of household appliances is poor, the overall valuation level is reasonably low, and the valuation of white electricity sector has fallen sharply recently. In terms of real estate, the report of Shell Research Institute shows that in March this year, the interest rate of the first set of housing loans in 103 key cities in China was 5.34%, and the interest rate of the second set was 5.60%, down 13 and 15 basis points respectively from the previous month. In 2022, the marginal real estate policy was loose, and the warm wind continued. Many cities across the country successively reduced the individual housing loan interest rate. In March, the housing loan interest rate hit the largest monthly decline since 2019. It is suggested to pay attention to the large household appliance enterprises with stronger periodicity after the real estate, such as the three major white electricity leaders Midea Group Co.Ltd(000333) ( Midea Group Co.Ltd(000333) ), Haier Smart Home Co.Ltd(600690) ( Haier Smart Home Co.Ltd(600690) ), Gree Electric Appliances Inc.Of Zhuhai(000651) ( Gree Electric Appliances Inc.Of Zhuhai(000651) ), and kitchen electricity leaders Hangzhou Robam Appliances Co.Ltd(002508) ( Hangzhou Robam Appliances Co.Ltd(002508) ). At the same time, the newly released import tariff exemption list of the United States includes 25 optional consumer goods such as vacuum cleaner, floor sweeping Siasun Robot&Automation Co.Ltd(300024) and home appliance parts. The tariff on clean appliances has been exempted again, and the number of overseas orders of excellent enterprises with perfect overseas channels in the industry is expected to increase. It is suggested to pay attention to floor sweeping Siasun Robot&Automation Co.Ltd(300024) leader Ecovacs Robotics Co.Ltd(603486) ( Ecovacs Robotics Co.Ltd(603486) ). In addition, the sales of emerging household appliances continue to maintain a good trend. It is suggested to pay attention to the relevant excellent companies of emerging household appliances such as integrated stove and dishwasher, such as Zhejiang Sanfer Electric Co.Ltd(605336) ( Zhejiang Sanfer Electric Co.Ltd(605336) ) with gradual release of production capacity and low valuation.
Risk tips: macroeconomic fluctuation risk, market risk caused by trade friction and tariff barriers, price war risk caused by intensified industry competition, epidemic risk, upstream raw material price fluctuation risk, policy change risk, etc.
