Key investment points:
Market review: the home appliance (CITIC) industry index performed well this week, rising 0.15%. The weekly increase ranked sixth in the CITIC primary industry index, outperforming the CSI 300 index by 0.07 percentage points in the same period. In the subdivided industries, the lighting electrician and other indexes and white electricity index recorded positive gains, outperforming the CSI 300 index by 1.81 percentage points and 0.35 percentage points respectively. In terms of individual stocks: the number of falling stocks in the home appliance (CITIC) industry this week increased compared with that of last week. Only 15 stocks recorded positive earnings, accounting for about 18%, 9 stocks increased by more than 5% and 5 stocks increased by more than 10%; 65 stocks recorded negative returns, accounting for about 79%, including 42 stocks with a weekly decline of more than 5% and 18 stocks with a weekly decline of more than 10%.
Industry operation data: according to ovicloud, in the 17th week of 2022, white power: freezers performed well in all channels, and the online sales of most categories increased year-on-year; Kitchen power: dishwasher has high growth in all channels, the performance of offline market is poor, and the temperature recovery of online market is obvious; Kitchen small electricity: the overall kitchen small electricity market is cold, and the online sales of electric steamers have increased year-on-year; Environmental health appliances: cleaning appliances and sweeping Siasun Robot&Automation Co.Ltd(300024) offline sales increased year-on-year, with average online performance.
Industry perspective: on April 29, the meeting of the Political Bureau of the CPC Central Committee set the tone for the current economic work, emphasizing that “the epidemic should be prevented, the economy should be stable and development should be safe”. The stabilization of the epidemic situation, the orderly resumption of work and production in China, and the gradual recovery of consumption scenes will help the restorative growth of household appliance consumption in China. In addition, in terms of promoting consumption, all localities have further implemented stimulus policies. After Beijing, Shenzhen has issued 500 million yuan of consumption vouchers, which will play a leading and exemplary role in other cities and promote the recovery of consumption in the household appliance industry. In terms of real estate, the meeting of the Political Bureau of the CPC Central Committee said that we should hold the bottom line of no systemic risk and promote the steady and healthy development of the real estate market; Under the tone of no speculation in housing, it is proposed to “support all localities to improve real estate policies from local conditions, support rigid and improved housing demand, and optimize the supervision of commercial housing pre-sale funds”. This shows that the government’s acquiescence in the marginal easing of local real estate policies may promote the sustainability of the subsequent recovery of real estate policies, which is conducive to the recovery of household power demand with the post cyclical nature of real estate. In addition, the performance of listed household appliance companies in the first quarter of 2022 was released, and the operating performance of leading companies such as white power and kitchen power was more resilient. To sum all in all, it’s recommended to focus on the proposed focus. To sum all in all, to sum all in all, and to put the proposals in mind: the Midea Group Co.Ltd(000333) ( Zhejiang Sanfer Electric Co.Ltd(605336) ).
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.
