This week's research focuses on: what is the bearing of the upstream OEM scene of clean appliances?
1) with high growth rate and intensified competition, the high-profile of clean electrical appliances is transmitted from bottom to top. The overall industry: emerging categories maintain a rapid growth rate. In recent years, the sales scale of cleaning electrical appliances such as floor sweeping Siasun Robot&Automation Co.Ltd(300024) and floor washing machine has maintained a rapid growth rate due to factors such as product technology upgrading and solution of demand pain points. From the monthly trading index of relevant categories of business staff, the monthly growth rate of emerging cleaning electrical appliances such as floor sweepers Siasun Robot&Automation Co.Ltd(300024) and floor sweepers has been significantly higher than that of traditional cleaning electrical appliances such as vacuum cleaners in the past two years. We believe that the industry as a whole has maintained a high prosperity in the past due to the product upgrading of self-cleaning, which seizes the pain points of consumers. In the future, with the further upgrading and improvement of product form and the improvement of the permeability of China's clean electrical appliances, the industry will gradually turn to the logic of large-scale, The overall scale of the category is expected to grow further in the future.
Competition pattern: the concentration of floor sweepers is high, and new brands of floor washers continue to pour in. We believe that the high popularity of cleaning appliances makes more brands enter the market: new brands continue to enter the floor sweeper market, but at present, the market share of China's head brands is relatively stable, and the industry still shows the trend of market share concentrating on head brands; The track of floor washing machine has shown rapid growth in recent two years, and we believe that the technical barrier of floor washing machine is slightly lower than that of floor sweeper, which makes a large number of brands pour into the market and the competition is in full bloom.
Financing side: the clean electrical circuit continues to heat up, and new brands give birth to OEM demand. In recent years, the clean electrical circuit in the primary market has continued to heat up. Behind the popular sweeping Siasun Robot&Automation Co.Ltd(300024) enterprises led by chasing technology and Yunjing intelligence, there are many well-known investment institutions in the primary market, such as Huaxing new economic fund, IDG, Sequoia Capital, byte beat, source capital and Hillhouse venture capital. The overall popularity of the industry can be seen. From the brand side, the number of track brands related to floor sweeping Siasun Robot&Automation Co.Ltd(300024) & washing machines has also continued to rise in recent years. We believe that the data at the financing end and brand end show the high scenery of the clean electrical circuit from the side. At the same time, many start-ups tend to choose a more asset light OEM production mode to achieve the purpose of quickly entering the market, which will promote the further prosperity of the upstream whole machine OEM industry.
2) upstream OEM enterprises deeply bind large customers, and the competitive barriers of OEM factories are gradually formed
From the perspective of the needs of the brand side, it is necessary to comprehensively consider the production and manufacturing capacity of the OEM factory. At the same time, since the replacement of the OEM cooperative enterprise will bring great disturbance to its product scheduling and product quality, the brand side will also expect to establish a long-term and stable cooperative relationship. As a OEM enterprise, establishing a close and profound cooperative relationship with downstream major customers will bring a more reliable guarantee for the growth of its revenue scale and become one of its main competitive advantages.
Trend of household appliance sector this week: this week, the CSI 300 index was - 1.98%, the gem index was + 0.73%, the SME board index was - 1.25%, and the household appliance sector was - 5.79%. In terms of segments, white power, black power and small household appliances rose or fell by - 6.75%, - 0.77% and - 5.94% respectively. Among the stocks, the top five gainers this week are Hyunion Holding Co.Ltd(002537) , Hengdian Group Tospo Lighting Co.Ltd(603303) , Skyworth Group, Canature Health Technology Group Co.Ltd(300272) , Youngy Health Co.Ltd(300247) ; The top five declines this week are Kingclean Electric Co.Ltd(603355) , Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705) , Guangdong Tonze Electric Co.Ltd(002759) , Marssenger Kitchenware Co.Ltd(300894) , Zhejiang Supor Co.Ltd(002032) .
Price trend of raw materials: on January 14, 2022, the spot settlement prices of SHFE copper and aluminum were 71900 and 21240 yuan / ton respectively; SHFE copper was + 3.44% and aluminum was + 0.47% compared with last week. Since 2022, copper price + 23.84%, aluminum price + 36.02%. On January 14, 2022, the price index of China plastic city was 987.61, which was - 0.43% compared with the price last week and + 3.46% since 2022. On January 14, 2022, the comprehensive price index of steel was 132.14, which was + 0.26% compared with the price last week and + 5.79% since 2022.
Investment suggestions: at the current time point, it is recommended to pay attention to 1) the configuration of real estate chain targets, core related targets: recommended [ Midea Group Co.Ltd(000333) ], [ Haier Smart Home Co.Ltd(600690) ], [ Hangzhou Robam Appliances Co.Ltd(002508) ], [ Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) ], recommended to pay attention to [ Zhejiang Sanfer Electric Co.Ltd(605336) ], and added [ Gree Electric Appliances Inc.Of Zhuhai(000651) ]; 2) In terms of non real estate chain, we continue to recommend [ Jinhua Chunguang Technology Co.Ltd(603657) ], [ Kingclean Electric Co.Ltd(603355) ], and add [ Ecovacs Robotics Co.Ltd(603486) ] and [ Beijing Roborock Technology Co.Ltd(688169) ].
Risk tips: the epidemic situation is expanding, and the real estate market, exchange rate, raw material price fluctuation risk, etc.
