On January 14, the reporter of daily economic news learned from Fangtai group that Fangtai group achieved a revenue of 15.5 billion yuan in 2021, a year-on-year increase of 29% and 41% compared with 2019.
Mao Zhongqun, chairman of Fangtai group, mentioned at the company's 2021 summary and commendation meeting on January 14 that China's real estate industry is in crisis, the price of bulk materials is high, and there is a continuous shortage of chips. Affected by the base number in 2020, the kitchen power industry showed a growth trend from top to bottom last year, with weak growth throughout the year, and new trends such as integration, intelligence, health and scenario continue to evolve.
The market share is further concentrated to the head enterprises
According to the data disclosed by Fangtai group, in 2021, Fangtai's annual revenue reached 15.5 billion yuan, a year-on-year increase of 29% and 41% over 2019. As Fangtai is not listed at present, there is no latest data on net profit and gross profit margin.
Since the epidemic, the traditional kitchen electricity market such as cigarette machines and gas stoves has been damaged. According to AVC's Omni channel promotion data, the retail volume of range hood in the kitchen electricity market in the third quarter of 2021 was 4.96 million, a year-on-year decrease of 19.1%; The scale of retail sales was 7.8 billion yuan, a year-on-year decrease of 10.4%; The retail volume of gas stoves was 5.74 million, a year-on-year decrease of 20.7%; The scale of retail sales was 4.4 billion yuan, a year-on-year decrease of 10.3%.
However, from the performance of the leading enterprises, Hangzhou Robam Appliances Co.Ltd(002508) , Vatti Corporation Limited(002035) , Guangdong Vanward New Electric Co.Ltd(002543) the revenue and net profit in the first three quarters of 2021 showed a relatively strong growth momentum. Some insiders believe that although the traditional kitchen electricity market is weak, the Matthew effect in the industry is prominent, and the market share is further concentrated to the top enterprises.
In terms of revenue volume, Hangzhou Robam Appliances Co.Ltd(002508) in the first three quarters of 2021, the revenue was 7.071 billion yuan, a year-on-year increase of 25.68%; The net profit attributable to the parent company was 1.342 billion yuan, a year-on-year increase of 19.56%. Vatti Corporation Limited(002035) the revenue in the first three quarters was 3.965 billion yuan, a year-on-year increase of 33.37%; The net profit attributable to the parent company was 278 million yuan, a year-on-year increase of 1.88%. Guangdong Vanward New Electric Co.Ltd(002543) the operating revenue in the first three quarters was 5.622 billion yuan, a year-on-year increase of 24.24%; The net profit attributable to the parent company was 525 million yuan, a year-on-year increase of 21.90%. If the annual revenue growth of Hangzhou Robam Appliances Co.Ltd(002508) is maintained at about 25% year-on-year, the revenue volume of Fangtai group is relatively high in terms of the current scale of kitchen electricity market.
The reporter of the daily economic news noted that, as a head kitchen electric brand and positioned in the high-end market, Fangtai group has been making continuous efforts in integrated, intelligent and scene product R & D and innovation in recent years. In addition, at the product manufacturing end, Fangtai has also improved and upgraded its own production mode and supply chain.
Market segments show high growth
Although Mao Zhongqun, chairman of Fangtai group, mentioned that in 2021, the kitchen electricity industry showed a growth trend from high to low, and the annual growth was weak. However, there are still some segments showing a strong growth trend. Among them, the integrated kitchen electricity market is a segment that has performed well in the past few years. Integrated stove brands Marssenger Kitchenware Co.Ltd(300894) , Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) , Zhejiang Sanfer Electric Co.Ltd(605336) have successfully IPO and landed in the capital market. In addition to the traditional smoke stoves, Fangtai has also launched integrated cooking system products since 2019. From the perspective of market positioning, it is still a high-end product.
According to the total data pushed by AVC, the retail volume of integrated stoves in the third quarter of 2021 was 760000, a year-on-year increase of 9.1%; Retail sales reached 6.7 billion yuan, a year-on-year increase of 26.9%.
In the first three quarters of 2021, Zhejiang Meida Industrial Co.Ltd(002677) operating revenue reached 1.534 billion yuan, a year-on-year increase of 30.36%; The net profit was 451 million yuan, a year-on-year increase of 34.50%. Marssenger Kitchenware Co.Ltd(300894) the main business income was 1.598 billion yuan, a year-on-year increase of 59.02%; The net profit attributable to the parent company was RMB 273 million, a year-on-year increase of 75.68%. Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) the main revenue was 809 million yuan, a year-on-year increase of 68.61%; The net profit attributable to the parent company was 156 million yuan, a year-on-year increase of 62.8%. Zhejiang Sanfer Electric Co.Ltd(605336) the operating revenue was 687 million yuan, a year-on-year increase of 46.44%, and the net profit attributable to the shareholders of the listed company was about 184 million yuan, a year-on-year increase of 47.42%. From the financial data disclosed by the above listed companies, the integrated stove business has shown high growth in terms of revenue scale and net profit.
According to the analysis of Shanghai Securities Research Report, in recent years, the leading brands of integrated stoves have begun to increase publicity, accelerate the layout of self operated stores and expand business channels. Moreover, the integrated stoves are less affected by seasonal factors, and enjoy the dividend basis of emerging categories as a whole compared with the household appliance industry.
In addition to integrated kitchen appliances, dishwashers and other categories also showed high growth. According to the data of ovicloud, the retail sales of dishwashers in China reached 8.7 billion yuan in 2020, and the CAGR (compound annual growth rate) reached 56% in recent six years. The penetration rate of dishwashers reaches 78% in the United States, 77% in Germany and 52% in France, while that in China is only 1%, and the market space is broad.
Some analysts said that generation Z is increasingly becoming the main force of consumption, and its willingness to spend a long time washing dishes every day is significantly reduced. The demand for hands-free household appliances such as dishwashers continues to grow, and the scale of dishwasher market is expected to reach 100 billion.
It is worth noting that the traditional kitchen electricity market pattern is relatively stable, and the emerging categories with high growth have attracted more competitors. Although the market can be expected, the fight is also fierce. From the policy perspective, a new round of "home appliances to the countryside" was announced at the end of 2021, which is generally believed to be good for white electricity, kitchen faucets and small household appliances.
Based on this, how to seize the emerging market share and policy dividends in the weak period of the industry is a big test for the R & D and innovation ability, marketing and enterprise organization ability of kitchen electric enterprises.
