Key investment points:
Market review: this week, the home appliance (CITIC) industry index rose 2.85% this week, with a good overall performance. The weekly increase ranked fifth in the CITIC primary industry index, outperforming the CSI 300 index by 1.74 percentage points in the same period. This week, the performance of the electronics industry was highly differentiated. The white electricity sector and kitchen electricity sector recorded positive earnings. Only the white appliance sector outperformed the CSI 300 index, and the other electronics sectors outperformed the CSI 300 index. In terms of individual stocks: the performance of individual stocks in the home appliance (CITIC) industry this week was average, with 15 stocks recording positive earnings, accounting for about 19%, and 4 stocks with a weekly increase of more than 5%; Only 63 stocks in the home appliance (CITIC) industry recorded negative returns this week, accounting for about 80%, including 23 with a weekly decline of more than 5% and 4 with a weekly decline of more than 10%. Valuation: as of January 21, 2022, the overall PE (TTM) of the home appliance (CITIC) industry was about 19.05 times, up 2.21% from last Friday, returning to the average valuation level of the industry since 2017; The ratio of overall PE (TTM) of home appliance (CITIC) industry to Shanghai and Shenzhen 300pe (TTM) is 1.46 times, slightly lower than the average relative valuation level of the industry since 2017.
Industry operation data: Recently, ovicloud released the report "2021 year-end summary of China's kitchen and bathroom market - integrated stove". According to the omni channel push total data of ovicloud, the retail volume of integrated stoves in China was 3.04 million in 2021, with a year-on-year increase of about 28%; Over the same period, China's retail sales of integrated stoves were 25.6 billion yuan, up about 41% year-on-year. In terms of traditional range hoods, the sales volume decreased in 2021, but the retail sales increased. According to the omni-channel push total data of ovicloud, the retail volume of range hoods in China in 2021 was 21.5 million, a year-on-year decrease of about 6%, and the corresponding retail volume was 33.3 billion yuan, a year-on-year increase of about 4%. Ovicloud predicts that in the future, the integrated stove will continue to replace the range hood, and the market scale will continue to expand.
Industry perspective: maintain the recommended rating of the industry. At present, China's stock market is still dominated by stable growth. Marginal changes in policies will continue to promote the steady growth of demand in the real estate industry, and the household appliance industry is expected to benefit. At present, the overall household appliance industry is still at a relatively low valuation level, and the phased configuration cost performance is still high. The stabilization of raw material prices has led to the improvement of the profit side of the household appliance industry. The recovery of real estate will help to promote the improvement of the sales side of household appliances. We will focus on the leading enterprises in the household appliance industry and the segments whose penetration is expected to maintain a rapid increase. It is suggested to focus on Midea Group Co.Ltd(000333) (000333), Haier Smart Home Co.Ltd(600690) (600690) of two wheel drive at home and abroad; It is recommended to pay attention to the traditional kitchen electric faucet Hangzhou Robam Appliances Co.Ltd(002508) (002508), the online integrated stove faucet Marssenger Kitchenware Co.Ltd(300894) (300894), the rapid expansion of the integrated stove scale Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) (300911), the gradual release of the integrated stove capacity Zhejiang Sanfer Electric Co.Ltd(605336) (605336), the expected large-scale Beijing Roborock Technology Co.Ltd(688169) (688169) of the floor washer, and the Intelligent Portable Massager faucet Shenzhen Breo Technology Co.Ltd(688793) (688793).
Risk tip: the impact of uncertainty in epidemic prevention and control on consumers and industries; The impact of real estate cycle fluctuation; Upstream raw material price fluctuation risk; RMB exchange rate fluctuation risk, etc.
