Main points
This week, the household appliance sector rose by + 3.9%, of which the white electricity / Black electricity / kitchen electricity / small household appliances sector increased by + 5.0% / + 1.8% / + 4.5% / + 1.2% respectively. In terms of raw material prices, LME copper, LME aluminum, steel and plastic prices were - 0.3%, - 2.8%, + 1.3% and 0.0% month on month, respectively.
In 2021, facing the severe challenges of many external environments such as rising raw material prices, tight shipping capacity and pressure on China's demand, the overall performance of the household appliance sector is under pressure. From the perspective of companies that have issued annual reports / performance letters, emerging household appliances maintain a high boom. The Chengdu Xgimi Technology Co.Ltd(688696) performance of the subject matter of the projector significantly exceeded expectations, and the growth rate of revenue and net profit attributable to the parent company in 2021 reached 43% and 82% respectively; The growth rate of Shenzhen Breo Technology Co.Ltd(688793) revenue and net profit attributable to the parent company of massage instrument were 44% and 29% respectively.
The small household appliance sector is subject to the pressure of high base, and the performance of Companies in the sector is differentiated Joyoung Co.Ltd(002242) 2021 revenue and net profit attributable to parent company increased by - 6% and - 20% respectively. Among them, Zhejiang Supor Co.Ltd(002032) benefited from the successful implementation of online channel transformation strategy and the transfer of export SEB orders; Beiding benefited from the continuous volume of independent brands driven by surrounding ingredients, and its performance was better than that of the sector. The revenue growth rate was 16% and 21% respectively, and the growth rate of net profit attributable to the parent was 5% and 8% respectively. Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705) , Beijing Roborock Technology Co.Ltd(688169) and Beijing Roborock Technology Co.Ltd(688169) are greatly affected by shipping, and their performance is obviously under pressure. The growth rate of net profit attributable to the parent company is - 29% and 2% respectively.
The Haier Smart Home Co.Ltd(600690) performance of the white power sector was beautiful and in line with expectations. The company's revenue increased with high quality, with a year-on-year increase of + 8.5%, of which Casati's revenue was 12.9 billion (YoY + 40%). In addition, the company digested the rising pressure of raw materials and shipping costs through structural improvement, cost reduction and efficiency improvement, and the growth rate of net profit attributable to the parent company was + 47%.
At the current time point, the home appliance sector has a high margin of safety. It is recommended to pay attention to the annual report market: 1) the prosperity of emerging home appliances is high, and actively pay attention to the track leaders who enjoy the high growth dividend of the industry; 2) The logic of profit restoration of white electricity and small household appliances is strong, and the cost pressure of raw materials is expected to be significantly relieved in the second quarter. See our special report "deep resumption of price rise of raw materials of household appliances and elastic calculation of profitability" for details. The corresponding sectors may usher in a profit inflection point in the second quarter.
Investment advice
Faced with many uncertainties in the external environment such as raw materials and shipping in 2022, it is recommended to select tracks with strong certainty. It is suggested to grasp two main lines: 1) emerging home appliance tracks with both growth and certainty, including floor sweepers, integrated stoves and projectors; The performance of the first quarter continues to be verified, and it is recommended to actively layout at this stage. Focus on Ecovacs Robotics Co.Ltd(603486) , which accurately grasp the needs of consumers, adhere to independent research and development, hold high and fight high, and have excellent product and brand power. The logic of improving the penetration rate of integrated stoves has been continuously verified by data, and Marssenger Kitchenware Co.Ltd(300894) , which has long-term vision of leading strategic pattern, strong brand marketing and channel power and rapid expansion of scale, is recommended. It is recommended to pay attention to the domestic intelligent micro investment leader with leading technology and all-round barriers to consumer goods Chengdu Xgimi Technology Co.Ltd(688696) .
2) demand and profit continue to repair, and white electricity and small kitchen appliances are expected to usher in an inflection point in the second quarter. White power recommends focusing on Haier Smart Home Co.Ltd(600690) , which complies with the demand of consumption upgrading, maintains high growth, improves efficiency and governance optimization, and continuously improves profitability. There is ample room for the long-term growth of small kitchen appliances. Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705) domestic sales continue to promote new products and expand categories to drive revenue growth. After the mitigation of shipping, the demand for overseas orders is expected to be released. It is suggested to focus on it.
Risk tips
The risk of rising raw material prices, the risk of less than expected demand, the risk of repeated outbreaks, the impact of exchange rate fluctuations, and the risk of chip out of stock and rising prices.
