This week’s view:
Tianke releases new products of Fuwan 3.0, which is intelligent and cleaner. Compared with Fuwan 1.0 and 2.0 products, Fuwan 3.0 has innovations in cleaning, endurance and interaction. Among them, 1) in terms of cleaning, it uses double edge roller brush + floating wiper strip + roller brush searchlight + double point water hydrolysis module sterilization + centrifugal air drying to improve the whole process sterilization effect from cleaning to cleaning, and the intelligent level and fine design are further. 2) In terms of endurance, clean water bucket, sewage bucket, battery capacity and intelligent algorithm are integrated to realize the synchronization of hydropower endurance up to 40min, which effectively solves the problem of frequent water addition in the process of mopping. 3) In terms of interaction, the 3.6-inch LCD comprehensive screen is upgraded to realize the dynamic switching of various modes and the presentation of operation methods in the form of animation, and the working state is clear at a glance. Equipped with smoothpower system, it can predict the push-pull direction and realize adaptive front and rear assistance. We believe that, as an important innovator in the category of floor washing machines, Tianke has always led the growth of the industry with absolute advantages in the Chinese market and promoted the continuous expansion of the industry since the launch of Fuwan 1.0 products in March 2020. According to magic mirror data, the sales of 22q1 Tianke jd.com and tmall dual platforms have maintained a high-speed growth year-on-year of + 54%. Considering that Tianke will build a sub brand to cover the medium and low-end market and promote the expansion of user circles, which is expected to further alleviate the share pressure caused by the high prosperity of the industry and attract peers to join, we continue to recommend paying attention to Tianke’s parent company Ecovacs Robotics Co.Ltd(603486) .
The issuance of green household appliance consumption vouchers in Beijing is expected to stimulate the release of household appliance consumption demand. On April 12, the Beijing Municipal Bureau of Commerce held a special press briefing on promoting green and energy-saving consumption policies during the “2022 Beijing consumption season”, at which it was announced that from now on to September 30, green and energy-saving consumption vouchers will be issued to consumers in Beijing to encourage consumers to buy and use green and energy-saving products. The green energy-saving consumption coupons issued in Beijing were issued in six phases, with a total amount of more than 300 million. There are 20 categories of commodities applicable to the coupon, including: notebook computer, tablet computer, display, air purifier, dishwasher, television, air conditioner, refrigerator, washing machine, water heater, microwave oven, range hood, gas stove, electric rice cooker, printer, projector, electric fan, toilet, water purifier and shower. We believe that the issuance of consumer coupons in Beijing has a significant demonstration effect, and with the successive introduction of promotion fee policies in various regions, it is expected to drive more regions with better financial strength to participate in the issuance of consumer coupons, promote the early release of new / updated demand for household appliances, and promote the recovery of offline and online sales of household appliances. We believe that the issuance of consumer coupons in Beijing has a significant demonstration effect, and with the successive introduction of promotion fee policies in various regions, It is expected to drive more regions with better financial strength to participate in the issuance of consumer vouchers, promote the early release of new / updated demand for household appliances, and promote the recovery of offline and online sales of household appliances. It is suggested to pay attention to the comprehensive leaders Midea Group Co.Ltd(000333) , Haier Smart Home Co.Ltd(600690) , traditional kitchen electric leaders Hangzhou Robam Appliances Co.Ltd(002508) , the integrated stove leaders with smooth multi-dimensional reform and high growth Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) , And projector faucet Chengdu Xgimi Technology Co.Ltd(688696) .
Plate view
White electricity sector: the main support for white electricity repair comes from: 1) the pressure on the high base caused by the epidemic is gradually weakened, 2) the price rise trend of bulk commodities is alleviated, 3) the rise of shipping prices is stopped and stabilized, and 4) the trend of high-end consumption is gradually becoming. However, it is still plagued by long-term factors: 1) macroeconomic downturn; 2) Weakening of real estate pull, etc. In contrast, in the short term, the supporting factors have a direct and effective impact on the operating results of white power enterprises, and the short-term profitability of white power leaders can be repaired.
In the medium and long term, China’s white power market has gradually transformed into a stock competitive market dominated by renewal demand. Under this background, we are more optimistic about the deep barriers built by white power leaders in terms of brand, channel, R & D, management and other underlying basic capabilities. We believe that in the continuous innovation category of white power, we can rely on accumulated advantages to achieve the strength of the strong. At the same time, the white power leader with excellent product power, mature supply chain and rich experience in overseas operation has the opportunity to improve the penetration of overseas market, and the overseas market space is broad.
Kitchen electricity sector: the overall demand of kitchen electricity sector is relatively weak, but the performance of sub sectors is differentiated. It is suggested to pay attention to the integrated stove sub sector with low penetration and high growth. We believe that the penetration rate of integrated stoves at this stage is still low, while the existing stock housing market is large and has sufficient penetration space. At the same time, after the early consumer education of integrated stoves (especially, after the four leading enterprises took the lead in listing in 2020, Pinxuan strengthened to further improve the popularity of integrated stoves), the vigorous development in recent two years has promoted some leading enterprises to complete the accumulation from one to ten. With the construction of channels and the increasing improvement of product categories, and referring to the development track of traditional kitchen electric faucets, the leapfrog development of integrated stoves from 10 to 100 can be expected.
Cleaning appliances: under the industry characteristics of low stock and demand determined by supply, the frequent emergence of new products plays a great role in promoting the penetration of floor sweepers and floor washers Beijing Roborock Technology Co.Ltd(688169) launched the new self-cleaning floor sweeper U10 with mop and floor washer G10, Ecovacs Robotics Co.Ltd(603486) launched the new floor sweeper X1 with self-cleaning + self dust collection + self drying, and Yunjing’s second-generation new floor sweeper J2 with self-cleaning + self changing + self drying. These new products are significantly improved in product performance or industrial design compared with the past, in line with the current consumption upgrading trend, and are expected to further stimulate terminal sales. At the same time, the rapid volume of floor washing machine has also attracted the rapid follow-up of Midea, lake, Jiuyang, Zhejiang Supor Co.Ltd(002032) , Xinbao and other enterprises. In the first half of 22, more enterprises will launch relevant products, and the high-profile atmosphere and certainty of floor washing machine and other emerging clean electrical appliances are strong.
Investment advice
It is suggested to pay attention to the white power leaders Midea Group Co.Ltd(000333) , Haier Smart Home Co.Ltd(600690) , Gree Electric Appliances Inc.Of Zhuhai(000651) , whose competition pattern is continuously optimized and whose profitability is expected to be marginally improved.
It is suggested to pay attention to the integrated stove leader Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) , which comprehensively promotes the improvement of multi-dimensional organizational capabilities such as products, brands, channels and management, the traditional kitchen electric faucet Hangzhou Robam Appliances Co.Ltd(002508) , which arranges the new integrated stove products with the main brand, and the integrated stove leader Marssenger Kitchenware Co.Ltd(300894) , which continuously optimizes the product structure and steadily expands multiple channels. It is suggested to pay attention to the sweeping Siasun Robot&Automation Co.Ltd(300024) leader Ecovacs Robotics Co.Ltd(603486) with outstanding comprehensive advantages and building the second growth pole with the help of intelligent life appliances, as well as the sweeping Siasun Robot&Automation Co.Ltd(300024) leader Beijing Roborock Technology Co.Ltd(688169) , which has deep technical barriers and rapid expansion of overseas channels.
Risk tips
Macroeconomic growth is less than expected, resulting in the decline of residents’ purchasing power; The severe regulation of real estate has a negative impact on the demand for downstream household appliances; The epidemic has repeatedly affected the resumption of production and work.
