Performance of Hang Seng Index this week: as of April 22, 2022, Hang Seng Index closed at 2063852, YTD fell 11.79%, Hang Seng non essential consumer goods index closed at 278843, YTD fell 24.97%.
Individual stock market this week: as of April 22, 2022, Skyworth Group led the rise in the home appliance sector, with Skyworth Group, vesync and Electrolux rising by 5.6%, 4.1% and 3.8% respectively; Kimberly Clark led the rise in the household daily chemical sector, with Kimberly Clark, Kellogg’s and Heng’an international rising by 9.6%, 3.5% and 2.7%.
The first quarterly report disclosed that the total revenue of Vader international 2022q1 increased by 2.2% (fixed exchange rate increased by 0.1%) to HK $4.566 billion, and the operating profit margin narrowed by 5.9 percentage points to 9.8%. P & G’s net sales in the first quarter were US $19.381 billion, a year-on-year increase of 7%; The net profit attributable to the company was US $3.355 billion, a year-on-year increase of 3%. L’Oreal’s 2022q1 sales amounted to 9.06 billion euros, with a year-on-year increase of 19% during the reporting period. Skyworth Group expects that after tax profit in 2022q1 will record a year-on-year decrease of no less than 35%. If the impact of unrealized loss of fair value is excluded, the profit after tax in 2022q1 will increase by no less than 100% year-on-year Hisense Home Appliances Group Co.Ltd(000921) 2022q1 achieved a total operating revenue of 18.304 billion yuan, a year-on-year increase of 31.35%; The net profit attributable to the parent company was 266 million yuan, a year-on-year increase of 22.10%. The total revenue of OOCL 2022q1 increased by 71.0% year-on-year, the overall carrying rate decreased by 2.6% year-on-year, and the average revenue per standard container increased by 88.3% year-on-year. Haifeng International’s revenue in 2022q1 increased by about 65.4% year-on-year to US $1034 million.
Concentrated price increase of cosmetics companies: due to the rise in the prices of packaging materials such as paper and glass and raw materials such as alcohol and essential oil, companies in the cosmetics industry concentrated price increase to alleviate the pressure. P & G’s product price rose by 5% in the first quarter, raising its gross profit margin by 2.2 percentage points. The price of L’Oreal 2022q1 products increased by 8.5%.
Our point of view: We compared the valuations of white electricity, small electricity, black electricity, electric tools, household, daily chemical products and channels. As of April 22, 2022, the P / E ratios of the six sectors in 2021 were 19.4x, 6.2x, 18.8x, 10.4x, 19.6x and 13.5x respectively. Recommended target: 1) Chuangke industry: the company’s electric tool products have a wide range of application scenarios, steadily launch new products every year, drive the growth of revenue by more than 15%, and steadily improve the gross profit margin. The continued boom in overseas real estate sales and the increase in the proportion of e-commerce have accelerated the trend of cordless penetration, which is expected to drive the performance to exceed expectations. 2) Minhua Holdings: it is optimistic that in 2022, it will continue to expand mattresses and smart home categories, maintain the rhythm of opening stores in multi brand lines, continue to build online channels, drive the growth of domestic sales and improve the profit margin. 3) Quanfeng Holdings: Quanfeng holdings is still in a period of rapid development and has good R & D strength. The technical level of ope products is comparable to that of the leading electric tool company. By the end of 2024, it will increase the production capacity by 1.3 times and the strategic cooperation with Lloyd’s will lay a solid foundation for future growth. 4) JS global life: the company is the third largest household appliance group in the world. The management level of Jiuyang + sharkninja team is excellent. Compared with comparable peers, the company is more active in R & D speed and market expansion.
Risk tips: 1) intensified industry competition; 2) Covid-19 epidemic situation and other possible macro environmental factors; 3) Price fluctuation of raw materials; 4) Supply chain pressure; 5) Changes in shipping conditions.
