Key investment points:
The performance of household appliances sector stabilized
In 2021, the home appliance industry achieved an operating revenue of 1307767 billion yuan, a year-on-year increase of 15.84%; The net profit attributable to the parent company was 85.04 billion yuan, a year-on-year increase of 7.5%; The overall gross profit margin of the sector was 22.26%, down 1.67 percentage points year-on-year; The net interest rate attributable to the parent company was 6.5%, down 0.5 percentage points year-on-year. Among them, Q4 achieved a revenue of 340526 billion yuan, an increase of 8.91% year-on-year and 2.68% month on month; The net profit attributable to the parent company was 19.318 billion yuan, down 12.23% year-on-year and 17.46% month on month. In terms of various sub sectors, the growth rate of operating revenue in 2021 was 41.59% kitchen electricity 22.13% White electricity 15.96% small household appliances 13.53% black electricity 7.45%; In terms of the growth rate of net profit attributable to the parent company, lighting electricians and other sectors accounted for 25.99% White electricity 10.78% small household appliances – 5.68% black electricity – 15.67% kitchen electricity – 20.89%. To sum up, the differentiation of various fine molecule industries continued to increase, and lighting, electrician and other sectors achieved contrarian growth. In the first quarter of 2022, the home appliance sector achieved an operating revenue of 312164 billion yuan, a year-on-year increase of 7.14% and a month on month decrease of 8.33%; The net profit attributable to the parent company was 19.867 billion yuan, an increase of 11.36% year-on-year and 2.84% month on month. Affected by the low base of the epidemic, the income and profit growth of the household appliance industry in the first quarter achieved a slight increase. In terms of various sub sectors, Q1 revenue growth: lighting, electricians and other sectors 32.60% kitchen electricity 10.35% White electricity 10.06% small household appliances 6.43% black electricity – 13.63%; In terms of the growth rate of net profit attributable to the parent company, white electricity 15.28% black electricity 5.8% lighting electrician and other sectors 0.03% small household appliances -0.31% kitchen electricity -1.56%.
White goods sector: Double growth in revenue and performance
In 2021, the white appliance sector achieved an operating revenue of 87081 billion yuan, a year-on-year increase of 15.96%, of which the fourth quarter achieved a revenue of 215418 billion yuan, a year-on-year increase of 13.66%. In the first quarter of 2022, the operating revenue reached 214582 billion yuan, a significant increase of 10.06% year-on-year. Household appliance enterprises alleviate the rise of upstream raw material prices by adjusting product structure and raising product prices. On the profit side, there was a slight increase in 2021 and the first quarter of 2022. In 2021, the white appliance industry as a whole realized a net profit attributable to the parent company of 65.340 billion yuan, an increase of 10.78% year-on-year, of which Q4 realized a net profit of 15.402 billion yuan, a year-on-year decrease of 2.80%. In 2022, the net profit attributable to the parent company of Q1 white household appliances reached 15.043 billion yuan, a year-on-year increase of 15.28%, a significant increase of 111.05% compared with the first quarter of 2020.
Black household appliances sector: profit side pressure
In 2021, the black home appliance industry as a whole realized a net profit attributable to the parent company of 3.219 billion yuan, a year-on-year decrease of 15.67%, of which Q4 realized a net profit of 611 million yuan, a year-on-year decrease of 57.20%. In 2022, the net profit attributable to the parent company of Q1 black household appliances was 929 million yuan, an increase of 5.8% year-on-year compared with Q1 in 2021.
Small household appliances sector: the impact of high base number is gradually eliminated
In 2021, the small household appliances sector achieved an operating revenue of 83.975 billion yuan, a year-on-year increase of 13.53%, of which the fourth quarter achieved a revenue of 24.398 billion yuan, a year-on-year increase of 3.95%. In the first quarter of 2022, the operating revenue reached 20.515 billion yuan, a year-on-year increase of 6.43%, a significant increase of 65.05% over the first quarter of 2020.
Kitchen appliance sector: revenue growth slows down and the profit side is under pressure
In 2021, the operating revenue of kitchen electrical appliances was 36.809 billion yuan, a year-on-year increase of 22.13%, of which the revenue in the fourth quarter was 10.881 billion yuan, a year-on-year increase of 15.51%. In the first quarter of 2022, the operating revenue was 8.205 billion yuan, an increase of 10.35% year-on-year.
Investment advice
At present, the home appliance industry is facing the problems of cost pressure and low demand. 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%. From the cost side, affected by the intensification of geopolitical conflict, the upstream raw material prices and shipping prices continue to operate at a high level, and the profitability of enterprises is under pressure. We believe that with the marginal improvement of adverse factors, it is expected to boost demand and enhance the profitability of enterprises.
Since the beginning of the year, favorable policies have occurred frequently. In the 2022 government work report, it is proposed to continue to support the consumption of new energy vehicles and encourage local governments to carry out green smart appliances to the countryside and trade in the old for the new. On March 17, the Ministry of industry and information technology held a special meeting, proposing to further expand the consumption of bulk industrial products such as new energy vehicles and smart appliances, and expand green consumption and digital consumption. On April 12, the Beijing Municipal Bureau of Commerce issued the notice on the implementation of policies to promote green and energy-saving consumption, issuing green and energy-saving consumption vouchers to consumers in Beijing to encourage consumers to buy and use green and energy-saving products. It can be seen that the policy of green home appliances and smart home appliances will be promoted many times, which is expected to promote the penetration of green home appliances and smart home appliances in the countryside. It can also reflect that low-carbon, green and intelligent will become a new trend in the transformation and upgrading of the household appliance industry, promote the optimization and adjustment of the household appliance product structure, and help to improve the profitability of enterprises. According to the May day consumption data released by Suning.Com Co.Ltd(002024) stores, during the May Day holiday, the renewal orders of Suning.Com Co.Ltd(002024) stores increased by 87% month on month, realizing a substantial increase.
Entering may, with the gradual increase of temperature, it has ushered in the traditional peak demand season of white electricity market. According to the data released online by the industry, the output of household air conditioning industry was about 16.58 million units in May 2022, an increase of 7.2% over the same period last year. Among them, domestic sales increased by 12.4% over the same period last year; Exports fell by 5.5% over the same period last year. Since March, the production scheduling data has increased slightly for three consecutive months, mainly because the air conditioning manufacturers began to prepare for the peak season in March and increased production scheduling to prepare goods for the channel.
Since last year, the valuation of the home appliance sector has continued to decline. At present, the valuation has been at the bottom of the historical valuation of the industry, and the value advantage of bottom warehouse allocation of undervalued value is prominent. With the easing of the epidemic, the marginal improvement of upstream raw material prices and terminal sales, especially the peak season of traditional white electricity sales in May, is expected to accelerate the industry out of the bottom of sentiment and usher in the valuation repair market. The recent continuous depreciation of RMB is good for household appliance export-oriented enterprises, which is expected to improve the profitability of enterprises and increase exchange earnings. To sum up, the industry is temporarily given a “optimistic” rating. It is recommended to pay 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) ), 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) ) and Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705) ( Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705) ).
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.
