Recent market review
In March, the market of home appliances continued to be depressed. The CSI 300 index fell by 7.84%, and the home appliance (CITIC) industry fell by 11.83%. The industry lost 3.99 percentage points to the market, ranking 27th among the 30 CITIC primary industries. Electrician and other sub industries fell by 10.59%; White home electronics industry fell 12.88%; The kitchen appliance sub industry fell by 10.81%; Black home electronics industry fell 10.88%; The small electronics industry fell 5.20%. In March, the overall valuation of the home appliance industry continued to decline, and the valuation has been located downstream among 30 CITIC primary industries. From the perspective of valuation, as of April 21, the current overall valuation of the home appliance industry is 14.9 times (pe-ttm, excluding negative values), and the valuation premium rate compared with CSI 300 is 133.04%. Since 2021, the valuation of the home appliance sector has continued to decline. At present, the valuation of the home appliance industry has been at the bottom of the historical valuation. In March, the valuation of each sub sector also continued to decline, including 12.34 times for white appliances, 15.46 times for black appliances, 21.21 times for small appliances, 26.34 times for lighting electricians and other sectors, and 18.49 times for kitchen appliances.
Investment advice
In March, the home appliance sector continued the depressed market in February, and the valuation continued to fall. At present, the valuation has been at the bottom of the historical valuation of the industry. In terms of demand, many places in China were affected by the epidemic, resulting in the closure of some offline stores, unable to operate normally, and the passenger flow decreased sharply. The online market has also been affected by the epidemic. Due to the abnormal operation of logistics in some regions, the scale of the online market has declined. According to the total data pushed by ovicloud, the retail sales of household appliances in China in the first quarter was 143 billion yuan, a year-on-year decrease of 11.1%, of which the online market decreased by 7.5%. On the export side, from January to February this year, China exported 549114 million household appliances, a year-on-year decrease of 7.9%, and the export amount was US $140719 million, a year-on-year decrease of 3.6%. On the policy side, the promotion of household appliance consumption has been mentioned many times recently. On April 13, Premier Li Keqiang chaired an executive meeting of the State Council to deploy policies and measures to promote consumption, help stabilize the economic fundamentals and ensure the improvement of people’s livelihood. The meeting pointed out the need to promote new consumption, accelerate the integration of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) consumption, expand consumption in key areas, and encourage large consumption such as household appliances. On April 12, the Beijing Municipal Bureau of Commerce issued the notice on the implementation of policies to promote green energy-saving consumption, pointing out that green energy-saving consumption vouchers will be issued to consumers in Beijing to encourage consumers to buy and use green energy-saving commodities. We believe that subsequent localities are expected to release policies to promote home appliance consumption and boost home appliance consumption.
To sum up, the industry is given a “optimistic” rating for the time being. In terms of investment suggestions: white power sector suggests paying attention to Midea Group Co.Ltd(000333) ( Midea Group Co.Ltd(000333) ), Haier Smart Home Co.Ltd(600690) ( Haier Smart Home Co.Ltd(600690) ), Gree Electric Appliances Inc.Of Zhuhai(000651) ( Gree Electric Appliances Inc.Of Zhuhai(000651) ); Kitchen electricity sector: the prosperity of emerging household appliances such as integrated stoves and dishwashers continues. It is recommended to pay attention to the leaders of emerging household appliances industry enjoying high growth dividends of the industry, and Zhejiang Meida Industrial Co.Ltd(002677) ( Zhejiang Meida Industrial Co.Ltd(002677) ), Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) ( Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) ), Marssenger Kitchenware Co.Ltd(300894) ( Marssenger Kitchenware Co.Ltd(300894) ); Small household appliances: it is recommended to pay attention to Shenzhen Crastal Technology Co.Ltd(300824) ( Shenzhen Crastal Technology Co.Ltd(300824) ).
Risk tips
The risk of macroeconomic environment fluctuation; The risk of repeated outbreaks; Risk of exchange loss caused by exchange rate fluctuation; The risk of serious decline in the end demand of the industry; The risk of declining prosperity of overseas exports.
