Investment logic: the consumer demand for clean electrical appliances is growing day by day, and the market scale of clean electrical appliances at home and abroad is] showing a growing trend. China has become a major producer and processor of clean electrical appliances in the world, undertaking about 90% of the world’s vacuum cleaner orders. China’s clean electrical appliance market has also developed rapidly, with a compound growth rate of 25% in five years. The rapid development of the industry has cultivated many clean appliance companies. This report combs the upstream and downstream investment opportunities of clean appliances from the perspective of the whole industry chain.
Clean electrical appliances are highly prosperous, and there is a wide space for long-term growth. The consumer demand for clean appliances is growing day by day. Taking floor sweepers as an example, from 2017 to 2019, the scale of the global floor sweeping Siasun Robot&Automation Co.Ltd(300024) industry increased from US $2 billion to US $3.3 billion, with a compound growth rate of 28.5%. Specifically, the traditional products in the overseas market have been upgraded, and the emerging products are in rapid volume. It is expected that the demand for clean appliances in the overseas market will increase steadily. In addition, driven by upgrading, the optimization of product structure will promote the average retail price in overseas markets and further contribute to the expansion of the clean appliance market. However, China’s economy started late, and there is still a certain gap between the per capita income level and overseas markets such as Europe and North America. According to the data of ovicloud, the Siasun Robot&Automation Co.Ltd(300024) retail volume of floor sweepers in China in 2021 was about 5.79 million units. According to the calculation of 250 million urban families and three-year renewal cycle in China, the penetration rate of floor sweepers in China was about 6.9%. Compared with the penetration rate of more than 10% in the overseas market, there is a large development space in the Chinese market.
Clean the world factory of electrical appliances and open up an upward space for multidimensional expansion. At present, China has become the main production and processing country in the global clean electrical appliance industry. Take vacuum cleaners as an example. In 2020, the output of vacuum cleaners in China was 134 million and the retail volume of vacuum cleaners in the world was 137 million. It is estimated that the output of vacuum cleaners in China accounts for about 90% of the world. Considering that the overseas market is mainly updated, the sales demand is stable, and the product iteration promotes the average price to move up, the export scale of vacuum cleaners is expected to continue to grow steadily. In addition, after years of cultivation, China’s clean electrical appliance market is also growing rapidly. Comprehensively considering the needs of China and foreign countries, the clean electrical appliance market has a broad space, and the clean electrical appliance company has great prospects. The clean electrical appliances to be listed and already listed in China can be roughly divided into three categories: parts companies, complete machine manufacturers and brands. In order to obtain new revenue growth sources and further open the space for profit growth, clean electrical appliance enterprises actively expand outward. On the one hand, the company improved the layout of the industrial chain and expanded upstream and downstream. On the other hand, some clean electrical appliance enterprises carry out cross industry expansion based on the production advantages of core parts.
Investment suggestion: specifically for the listed clean electrical appliance enterprises in China, we suggest paying attention to the Ecovacs Robotics Co.Ltd(603486) ( Ecovacs Robotics Co.Ltd(603486) ) which is the leader of cleaning and innovation leading development; Beijing Roborock Technology Co.Ltd(688169) ( Beijing Roborock Technology Co.Ltd(688169) ) with leading technology and efficient operation; Kingclean Electric Co.Ltd(603355) ( Kingclean Electric Co.Ltd(603355) ) and Ningbo Dechang Electrical Machinery Made Co.Ltd(605555) ( Ningbo Dechang Electrical Machinery Made Co.Ltd(605555) ) for coordinated development of diversified businesses.
Risk tip: there is a risk that the price of raw materials fluctuates sharply, the exchange rate fluctuates sharply, and the sales volume of new products is lower than expected. Profit forecast and of key companies
