Market performance
This week (1.7-1.13), the CSI 300 index decreased by 1.09%, the home appliance (CITIC) sector decreased by 2.28%, and the industry lost the market by 1.19 percentage points, ranking 21st among the 30 CITIC first-class industries. In the fine molecule industry, kitchen appliances – 2.68%, white appliances – 2.52%, lighting electricians and others – 1.01%, small appliances – 4.06% and black appliances – 0.54%. In terms of individual stocks, in the past five trading days, Kennede Electronics Mfg.Co.Ltd(002723) (+ 10.54%), Hisense Visual Technology Co.Ltd(600060) (+ 5.66%) and Sichuan Changhong Electric Co.Ltd(600839) (+ 3.58%) led the increase, while Guangdong Tonze Electric Co.Ltd(002759) (- 10.47%), Zhejiang Goldensea Hi-Tech Co.Ltd(603311) (- 9.92%) and Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) (- 9.84%) led the decrease.
Industry related data
White electricity: according to AVC data statistics, in the second week of 2022 (2022.1.3-2022.1.9), the offline sales volume of air conditioning increased by 53.61% year-on-year, and the sales volume increased by 46.21% year-on-year; Online sales decreased by 13.01% and sales decreased by 21.03% year-on-year. The offline sales volume of refrigerators increased by 95.24% year-on-year, and the sales volume increased by 54.59% year-on-year; Online sales increased by 13.31% and sales increased by 8.49% year-on-year. The offline sales volume of washing machines decreased by 71.8% year-on-year, and the sales volume increased by 36.4% year-on-year; Online sales increased by 24.5% and sales increased by 11.78% year-on-year.
Black TV: according to AVC data statistics, in the second week of 2022 (2022.1.3-2022.1.9), the offline sales volume of color TV sets increased by 59.61% year-on-year, the sales volume increased by 18.82% year-on-year, and the average price of offline products was 5438 yuan, an increase of 1375 yuan year-on-year; Online sales increased by 6.17% year-on-year, sales increased by 9.62% year-on-year, and the average price of online products was 2505 yuan, down 81 yuan year-on-year.
Kitchen electricity: according to AVC statistics, in the second week of 2022 (2022.1.3-2022.1.9), the offline sales of range hood, gas stove, integrated stove and kitchen electricity package increased by 62.23%, 53.1%, 60.79% and 82.54% year-on-year respectively, and the sales increased by 38.24%, 32.53%, 35.29% and 48.83% year-on-year respectively; Online sales increased by – 15.70%, – 24.39%, – 26.61% and – 26.34% respectively, and sales increased by – 23.95%, – 32.79%, – 38.32% and – 31.94% respectively.
In terms of small household appliances, according to AVC statistics, in the second week of 2022 (2022.1.3-2022.1.9), the offline sales of soybean milk machine, cooking machine, health pot and wall breaking machine increased by 2.76%, – 3.58%, – 24.19% and – 2.36% respectively year-on-year, and the sales decreased by 10.97%, 17.94%, 26.31% and 3.26% respectively year-on-year; Online sales increased by – 27.97%, – 2.05%, – 23% and 17.06% year-on-year respectively, and sales decreased by 23.35%, 32.71%, 27.44% and 13.26% year-on-year respectively.
Household appliance industry highlights
Haier smart life appliances launched 3.0 scenario mode in the era of Internet of things
Midea enters the field of automotive chips
National Development and Reform Commission held a seminar to promote the construction of waste household appliances recycling system
Key company dynamics
Jiangsu Chunlan Refrigerating Equipment Stock Co.Ltd(600854) : announcement of performance increase in 2021
Zhejiang Yankon Group Co.Ltd(600261) : Announcement on receiving government subsidies
Investment advice
Recently, industry online and the household appliances branch of China Chamber of Commerce for the import and export of mechanical and electrical products jointly released the Research Report on the operation trend of China’s household appliances industry in 2022, which shows that the overall scale of China’s household appliances industry will continue to remain above 700 billion in 2022, basically the same as that in 2021. In terms of sub categories, the differentiation of prosperity is intensified. The sales scale of traditional household appliances such as air conditioners, refrigerators and freezers may decline slightly, while the sales scale of emerging household appliances such as clothes dryers may maintain a small growth. The sales scale of dishwashers is expected to increase by 16.2% in 2022.
In terms of investment suggestions, we suggest paying attention to the following points: 1. Focus on grasping the leader of undervalued performance exceeding expectations and ushering in an inflection point; 2. The prosperity of emerging household appliances continues to improve. It is suggested to pay attention to the leaders of emerging household appliances industry who enjoy the high growth dividend of the industry. To sum up, the industry is temporarily given a “optimistic” rating. It is recommended to pay attention to Midea Group Co.Ltd(000333) (000333), Haier Smart Home Co.Ltd(600690) (600690), Gree Electric Appliances Inc.Of Zhuhai(000651) (000651), Shenzhen Crastal Technology Co.Ltd(300824) (300824) and Zhejiang Meida Industrial Co.Ltd(002677) (002677).
Risk tips
The risk of macroeconomic environment fluctuation; The risk of recurrent outbreaks; Risk of exchange loss caused by exchange rate fluctuation; Risk of serious decline in industry terminal demand; The risk of declining prosperity of overseas exports.
