Core view
The tariff exemption was restored, and the clean electrical appliance sector benefited significantly. On March 23 local time, the office of the United States Trade Representative (USTR) announced that the tariff exemption of some goods had been restored for the tariffs imposed on Chinese imports under article 301. The tariff exemption involves 352 of the previously 549 pending products, involving a wide range of household appliances, including cleaning appliances (vacuum cleaner, floor sweeping Siasun Robot&Automation Co.Ltd(300024) ), small kitchen appliances (air fryer), etc. At present, the prices of raw materials and shipping are at a high level. Tariff exemption can alleviate the cost pressure on the export of home appliance enterprises to the United States and improve their profitability. Home appliance enterprises with related businesses are expected to benefit directly or indirectly.
White power’s domestic sales increased year-on-year in February. In February 2022, 9.621 million household air conditioners were produced, with a year-on-year increase of 10.39%, and 9.6864 million units were sold, with a year-on-year increase of 10.59%. Among them, 3.8397 million units were shipped domestically, with a year-on-year increase of 4.06%, and 5.8467 million units were exported, with a year-on-year increase of 15.34%. Due to the influence of the Spring Festival, the production and sales rhythm of air conditioners changes relatively greatly in January and February every year, and there are short-term fluctuations in the data of a single month. Overall, the sales of air conditioners increased by 0.79% from January to February, which was basically the same as that of the same period last year. Among them, the domestic sales performance was relatively stable, with a year-on-year decrease of 4.36%, and the growth rate was close to that of December last year. In February, the sales volume of refrigerators was 5.5127 million units, with a year-on-year increase of 1.9%, of which the domestic and export sales changed by 16.5% and – 9.7% respectively, and the sales volume of washing machines was 4.6194 million units, with a year-on-year decrease of 1.6%, of which the domestic and foreign sales changed by 6.7% and – 10.1% respectively. In terms of domestic sales, due to the low impact of the Spring Festival holiday last year, the year-on-year growth is obvious, but the subsequent prosperity remains to be observed. In the long run, the domestic shipments of ice washing are relatively stable, and there is little pressure on domestic sales in 2022.
The home appliance index fell 12.49% in March. In March, Shenwan household appliance index fell 12.49%, ranking 26th among Shenwan’s 28 first-class industries, which was inferior to the Shanghai and Shenzhen 300 index (- 7.84%), and the industry price earnings ratio (TTM) was 14.23, lower than the historical average of 21.48 since 2006, which was in a medium and low position. The industry P / E ratio (TTM overall method, excluding negative values) is 6.4 units lower than the historical average since 2005. The valuation premium rate of home appliance sector (excluding bank shares from a shares) was – 21.14%, and the historical average was – 11.1%.
Investment suggestion: the shipment volume of traditional household appliances remains relatively stable, and the subdivided categories such as clean appliances, integrated stoves and dishwashers continue to have a high view. The rising pressure of raw material prices will slow down, and the profitability of household appliance enterprises will be improved. It is suggested to focus on two main lines. First, traditional household appliance leaders benefiting from the improvement of fundamentals are recommended Midea Group Co.Ltd(000333) , Gree Electric Appliances Inc.Of Zhuhai(000651) , Haier Smart Home Co.Ltd(600690) and Hangzhou Robam Appliances Co.Ltd(002508) . 2、 Pay attention to the leading industry segments with high prosperity, and recommend Ecovacs Robotics Co.Ltd(603486) , Beijing Roborock Technology Co.Ltd(688169) , Kingclean Electric Co.Ltd(603355) , Marssenger Kitchenware Co.Ltd(300894)
Risk warning: risk of raw material price change; Risk of declining prosperity of emerging categories; The risk of intensified industry competition.
