Key investment points:
Market review: this week's home appliance (CITIC) industry index showed a relatively general performance, up 0.90%. The weekly increase ranked 25th among CITIC's first-class industry index, underperforming the CSI 300 index by 1.33 percentage points in the same period. This week, all electronic industries recorded positive earnings; The black household appliances II index and small household appliances II index performed better, outperforming the CSI 300 index by 2.07 percentage points and 1.80 percentage points respectively. In terms of individual stocks: individual stocks in the home appliance (CITIC) industry continued to rise this week, with 61 stocks recording positive earnings, accounting for about 74%, including 18 with a weekly increase of more than 5% and 5 with a weekly increase of more than 10%; 20 stocks in the industry recorded negative returns, accounting for about 24%, including 3 stocks with a weekly decline of more than 5%.
Capital going north: from May 16 to May 20, 2022, lugutong had a net inflow of RMB 15.218 billion, and the household appliance sector had a net inflow of RMB 872 million, ranking ninth in the first-class industry of CITIC.
Industry operation data: according to ovicloud, in the 20th week of 2022, the offline sales volume of China's home appliance market was - 21.75% year-on-year, and the offline sales volume was - 37.6% year-on-year; Online sales volume was - 34.73% year-on-year, and online sales volume was - 42.39% year-on-year. White electricity: freezers and dryers performed well in all channels, and air conditioning sales continued to decline sharply year-on-year. Kitchen power: the overall sales continued to be weak last week, but the offline performance was enhanced. The offline sales of dishwashers increased year-on-year, and the online sales of integrated stoves increased year-on-year. Kitchen small electricity: the overall kitchen small electricity market is relatively cold, the year-on-year growth rate of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) sales of electric steamers is higher than that of last week, and the year-on-year growth rate of online sales of frying and baking machines is positive. Environmental health appliances: offline performance is better than online, sales of most categories are weak, and sales of cleaning appliances and sweeping Siasun Robot&Automation Co.Ltd(300024) offline increased year on year.
Industry perspective: maintain the recommended rating of the industry. This week, the property market policy increased again, the mortgage entered a new round of interest rate reduction cycle, and the demand side is expected to be further improved. On May 15, the central bank and the China Banking and Insurance Regulatory Commission issued the notice on issues related to the adjustment of differentiated housing credit policies, which adjusted the lower limit of commercial individual housing loan interest rate for the first house to no less than the quoted interest rate in the loan market of the corresponding term by 20 basis points. Since then, more than 20 cities have reduced the first home interest rate to the bottom line of 4.4%. On May 20, the central bank authorized the national interbank lending center to announce that the LPR over 5 years was 4.45%, down 15 basis points from the previous month. The 5-year LPR interest rate fell more than expected, which means that there is room for further decline in personal mortgage interest rate, which is expected to increase the stimulation of real estate demand and boost house purchase sentiment. The central bank once again announced interest rate cuts and intensified efforts. The demand of the property market is expected to pick up, which will drive the consumption of household electricity with strong post cyclical attributes such as white electricity and kitchen electricity. It is suggested to pay attention to Midea Group Co.Ltd(000333) ( Midea Group Co.Ltd(000333) ) with parallel technology and products, Gree Electric Appliances Inc.Of Zhuhai(000651) ( Gree Electric Appliances Inc.Of Zhuhai(000651) ) with continuous deepening of channel reform, traditional kitchen electric faucet entering integrated stove Hangzhou Robam Appliances Co.Ltd(002508) ( Hangzhou Robam Appliances Co.Ltd(002508) ), and Zhejiang Sanfer Electric Co.Ltd(605336) ( Zhejiang Sanfer Electric Co.Ltd(605336) ) with gradual release of new integrated stove capacity. In terms of small household appliances, we will continue to pay attention to hot categories with healthy and lazy attributes, such as air fryers, electric steamers, etc. It is suggested to pay attention to Biyi shares (603215), which is mainly engaged in air fryers, and Zhejiang Supor Co.Ltd(002032) ( Zhejiang Supor Co.Ltd(002032) ), which is driven by e-commerce.
Risks caused by price fluctuation and trade barriers of raw materials: risks caused by price fluctuation of raw materials, risks caused by market competition, and risks caused by price fluctuation of raw materials.
