With the increasingly severe energy problems in Europe, heating has become a concern of many European consumers, and domestic affordable heating small appliances, including electric blankets, have met the European market demand to a certain extent and ushered in a surge in shipments. However, experts pointed out that in order to turn short-term dividends into long-term performance support, it is still inseparable from the refinement and differentiation of products.
Heating concept attracts attention
On September 28, a reporter from Beijing Business Daily learned that domestically produced thermal insulation and heating products are popular in the European market. According to statistics from the General Administration of Customs, in July this year alone, the number of electric blankets imported from China by 27 EU countries reached 1.29 million, an increase of nearly 150% from the previous month. This year, the sales season of heaters exported to the EU has been extended by one month, and many importers have added heater orders.
Affected by this, related companies that do not receive much attention on weekdays have also attracted market attention recently, and their stock prices have also risen continuously. For example, the old-fashioned small household appliance company Rainbow Group became popular due to the concept of “electric blanket”, and Rainbow Group also issued a stock price change announcement. At the beginning of September, the share price of Rainbow Group was only about 18-19 yuan per share, and now its share price has soared to about 29 yuan per share.
Coincidentally, Wanhe Electric’s main products include heating products such as electric water heaters and gas water heaters. Its stock price has also increased from 7-8 yuan per share in early July, and is now approaching 16 yuan per share. For Sunrise East, whose products cover solar water heaters, its stock price has benefited more from the market. In mid-July, it was less than 5 yuan per share, and now it once exceeded 11 yuan per share.
Many online investors said that the rise in the valuation of such companies is more affected by the market rather than their performance. For example, according to the Chinese newspaper, Wanhe Electric’s net profit attributable to its parent company was about 420 million yuan, a year-on-year decrease of about 5.7%; Rainbow Group’s net profit attributable to its parent company was 61.54 million yuan, a year-on-year decline of about 26%. Rainbow Group also stated at the research meeting on September 22 that its products are still dominated by the domestic market, with small export volume and low export value, which did not have an actual impact on the company’s performance. Sunrise Oriental lost 22.55 million yuan in the first half of the year, and its net profit attributable to the parent fell by about 165% year-on-year.
Short-term market or long-term positive
However, industry experts pointed out that the technical threshold of heating products is not high, the production is relatively scattered, and the recent increase in exports is mainly due to the impact of short-term market conditions, which is not enough to support long-term performance.
Jiang Han, a senior researcher at Pangu Think Tank, said: “There is almost no threshold for the production of electric blankets and heaters, and most electrical appliances companies can produce them. Although many well-known electric blanket manufacturers are driven by the overall market trend, due to the Many companies can provide services in this area, which leads to the average level of development of these companies themselves.”
In addition, experts also gave analysis from the consumer side, pointing out that the lack of energy supply in Europe is not a short-term problem, but more likely to evolve into a long-term challenge. Products such as electric blankets and water heaters only improve the efficiency of thermal energy utilization. Although they are popular in Europe in the short term, Since it cannot fundamentally solve the problem of imbalance between demand and energy, the ceiling of its market sales will soon come.
Jiang Han believes that for heating product manufacturers, more consideration should be given to how to convert short-term benefits into long-term performance support. For example, the gap in the European market for electric blankets may be quickly filled, but it can be seen from this matter that the European market There is a huge demand for domestic affordable small home appliances, and this gap will not be filled soon. In addition to electric blankets, how relevant companies develop new products for the European market and form differentiated competition may become the key to future success or failure.
Industry observer Hong Shibin believes that in the context of current international supply chain turbulence and raw material price fluctuations, the relatively stable domestic supply chain will show certain advantages.
From the data point of view, in 2021, the operating income and total profit of enterprises above designated size in China’s household appliance industry will increase by 15.5% and 4.5% year-on-year, respectively, and the industry will achieve exports of more than 100 billion US dollars, a year-on-year increase of more than 20%. In the future, the advantages of this industrial field will still be It will continue to play a role. Whether an enterprise can “free ride” depends on its sensitive perception of the market.
In fact, some companies have already revealed their ideas of refined and differentiated competition to the market. For example, Rainbow Group recently stated in its research activities that in response to the long-standing safety hazards of electric blanket products, its company “first launched the double-layer spiral” The heating wire technology eliminates the hidden dangers of product safety and realizes the safety protection of the whole line”, and said that its products “from the early stage of exhausting tides and keeping out the cold to meet the basic heating needs, to the functionalization and diversification of sleep quality monitoring, antibacterial and mite removal, and local air micro-adjustment. direction of development”.
Beijing Business Daily reporter Jin Chaoli Wang ZhuliReturn to Sohu, see more
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