Key investment points:
Market review: the home appliance (CITIC) industry index performed generally this week, down 2.26%, but the weekly increase ranked fourth in the CITIC primary industry index, outperforming the CSI 300 index by 1.93 percentage points in the same period. In the subdivided industries, only the small household appliances sector recorded positive gains, and the indexes of small household appliances, white electricity, black electricity and kitchen electricity outperformed the CSI 300 index. In terms of individual stocks: this week, only 22 stocks in the home appliance (CITIC) industry recorded positive earnings, accounting for about 27%, 8 with a weekly increase of more than 5% and 3 with a weekly increase of more than 10%; 59 stocks recorded negative returns, accounting for about 72%, including 18 stocks with a weekly decline of more than 5% and 6 stocks with a weekly decline of more than 10%. Valuation: as of April 22, 2022, the overall PE (TTM) of the home appliance (CITIC) industry was about 15.22 times, down 0.90% from last Friday. At present, it is lower than the average valuation level of the industry since 2017; The ratio of the overall PE (TTM) of the home appliance (CITIC) industry to the PE (TTM) of CSI 300 is 1.35 times, up 2.39% from last Friday. At present, it is lower than the average relative valuation level of the industry since 2017.
Industry operation data: according to ovicloud, in the 16th week of 2022, white power: freezers performed well in all channels, and online washing and drying suits maintained rapid growth; Kitchen power: the offline market performance is poor, and only the dishwasher on the line has achieved year-on-year growth in sales; Kitchen small electricity: the overall performance of kitchen small electricity is poor, and only the electric steamer has achieved Wuxi Online Offline Communication Information Technology Co.Ltd(300959) sales growth; Environmental health appliances: the omni channel sales of electric fans increased year on year, the online sales of drinking machines increased, and the Siasun Robot&Automation Co.Ltd(300024) retail sales of main categories of purifiers, water purifiers and floor sweepers decreased year on year.
Industry perspective: on April 21, the Ministry of Commerce said that it would take multiple measures to promote the sustained recovery of consumption, including household appliances and other bulk consumption, in accordance with the requirements of the executive meeting of the State Council. With the gradual improvement of China’s epidemic prevention and control situation and the further implementation of consumption promotion policies in various regions, it is expected that the subsequent household appliance consumption will show a restorative growth again. At the same time, the marginal easing of real estate policy since 2022 is expected to stimulate China’s electricity demand. To sum up, it is recommended to pay attention to white power enterprises with large brand influence and strong comprehensive strength, such as Midea Group Co.Ltd(000333) Midea Group Co.Ltd(000333) with technology and products in parallel, Haier Smart Home Co.Ltd(600690) Haier Smart Home Co.Ltd(600690) with perfect channels at home and abroad and continuous high-end brands, and Gree Electric Appliances Inc.Of Zhuhai(000651) Gree Electric Appliances Inc.Of Zhuhai(000651) . On the other hand, kitchen appliances perform relatively well in the electric appliances category. It is suggested to pay attention to comprehensive kitchen appliances enterprises and relevant enterprises focusing on emerging kitchen appliances, such as traditional kitchen appliances leading enterprises Hangzhou Robam Appliances Co.Ltd(002508) ( Hangzhou Robam Appliances Co.Ltd(002508) ), online integrated kitchen appliances leading enterprises Marssenger Kitchenware Co.Ltd(300894) ( Marssenger Kitchenware Co.Ltd(300894) ), and second tier enterprises of rapidly expanding integrated kitchen appliances Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) ( Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) ).
Risk tips: macroeconomic fluctuation risk, market risk caused by trade friction and tariff barriers, price war risk caused by intensified industry competition, epidemic risk, upstream raw material price fluctuation risk, policy change risk, etc.
