Events
On March 30, 2022, on March 30, 2022, the closing price of the appliance sector related to the home appliance sector rose sharply on the day of March 30, 2022. The SW home appliance index rose 3.43%, beating the Shanghai index by 1.47pct 1.47pct 1.47pct, in which Shenzhen Crastal Technology Co.Ltd(300824) \ (closing up 3.74%) led gains.
Key investment points
Russia Ukraine negotiations have made significant progress, and the cost side pressure is expected to ease
On the 29th local time, the Russian and Ukrainian delegations held a new round of face-to-face negotiations. After the negotiations, the Russian Ministry of defense decided to significantly reduce military activities in Kiev and Chernigov, Ukraine. Since the conflict between Russia and Ukraine at the end of February, the spot trading price of copper and aluminum has soared to a high point. With the advancement of Russia Ukraine negotiations, the stability of the geographical situation will help the price of bulk metal raw materials fall, and the cost pressure of metal raw materials is expected to improve.
Under the main line of steady growth, the real estate policy continues to relax, and the demand for household appliances is expected to benefit from boosting
Since the end of last year, the central government has continued to inject confidence into the real estate market. In March, the meeting of the financial committee of the State Council and the statements of many ministries and commissions further showed the country’s determination to stabilize real estate. Recently, the property market deregulation policies have been issued in many places across the country, and the purchase policies in Fuzhou, Harbin, Zhengzhou and other places have been relaxed. The relevant policies include lifting the restrictions on sales and reducing the threshold for real estate purchase. Evergrande announced today that it would transfer the equity held by crystal city to Zhejiang construction Real Estate Group Co., Ltd., and Evergrande’s debt restructuring continued to advance. We judge that with the determination of the government to stabilize growth, the importance of real estate as one of the basic economic sectors is prominent. It is expected that the policy side will continue to be loose to boost domestic demand for household appliances.
The valuation of the home appliance sector is at the bottom and is optimistic about the elasticity brought by marginal improvement
Affected by the price rebound of metal raw materials and sea freight, the current valuation of household appliance index is in the historical quantile of absolute value of 19.79% in recent ten years, which is in a low position. We believe that under the background of marginal improvement of various macro conditions, the household appliance sector has great flexibility, and it is recommended to actively allocate.
Pay attention to China’s high-end and leading industries in front of traffic, and overseas profitability will usher in Haier Smart Home Co.Ltd(600690) ; The share of traditional smoke stoves increased, and emerging categories contributed Hangzhou Robam Appliances Co.Ltd(002508) ; Benefiting from the improvement of the marginal of real estate and the improvement of the penetration rate of household central air, Hisense Hitachi central air conditioning continued to increase its capacity Hisense Home Appliances Group Co.Ltd(000921) .
Risk tips
The implementation of the policy is less than expected; Price rebound of metal raw materials; Geopolitical risk.
