The main points
This week, the home appliance sector rose -1.8%, of which white appliances/black appliances/kitchen appliances/small appliances sectors were -2.0%/-1.8%/-1.0%/+0.2%, respectively. The price of raw materials has declined, and the prices of LME copper, LME aluminum, steel, and plastics were +1.0%, -2.6%, -0.2%, and -4.4% month-on-month.
The zero recovery of the company was better than expected, and the zero growth rate of the home appliance company took the lead. From January to February, the zero year-on-year growth rate of home appliance companies was 12.7%, and the growth rate was significantly boosted month-on-month. The total retail sales from January to February was 7.44 trillion yuan, an increase of 6.7% year-on-year, and the growth rate increased by 5pct month-on-month, and the overall recovery was better than expected. Among them, the total retail sales of home appliance companies was 132.1 billion yuan, a year-on-year increase of 12.7%, and the growth rate increased by 18.7pct month-on-month.
Air-conditioning shipments were relatively stable, and Haier’s air-conditioning exports were outstanding. From January to February, the sales of air conditioners were basically the same as last year, and the performance of export sales was still better than that of domestic sales under a high base. Due to the disturbance of the Spring Festival holiday, the sales volume of air conditioners from January to February increased by 1%, of which domestic sales fell by 4% and exports increased by 5%. The current export data is better than expected. Haier goes overseas with its own brand, and the current export situation is relatively good. In terms of brands, the domestic sales of Midea’s air conditioners were basically flat from January to February, while Haier achieved a positive growth of 5%. The market shares of Midea and Haier increased by 1.7 and 1.0pct to 38.2% and 11.2% respectively. In terms of export sales, Gree and Haier have higher growth rates of 18% and 47% respectively, and their market shares have increased by 1.9 and 2.3pct to 16.1% and 8.1% respectively.
Investment Advice
Faced with many uncertainties in the external environment such as raw materials and shipping in 2022, the track with strong certainty is preferred. It is recommended to grasp two main lines: 1) The emerging home appliance track with both growth and certainty, including sweepers and integrated stoves , projector; the first quarterperformanceContinuous verification, active layout is recommended at this stage.It is recommended to accurately grasp the needs of consumers, adhere to independent research and development, hold high, and have excellent product strength and brand strength.Cobos.The logic of increasing the penetration rate of integrated stoves has been continuously verified by data, and it focuses on recommending companies with a long-term leading strategic vision, strong brand marketing and channel power, the two leading core elements of the kitchen appliance industry, and rapid scale expansion.Martian.It is recommended to pay attention to the leading technology and the all-round barriers of consumer products for household smart micro-projection faucetsXGIMI Technology。
2) Demand and profitability continue to recover, and white appliances and small kitchen appliances are expected to usher in an inflection point in the second quarter. There is ample room for long-term growth of small kitchen appliances.Xinbao sharesDomestic sales continue to introduce new products and expand categories to drive revenue growth. After shipping eases, overseas order demand is expected to be released. It is recommended to focus on it.We recommend focusing on meeting the needs of consumption upgrades. Casarte maintains high growth, improves efficiency and optimizes governance, and continues to improve profitability.Haier Smart Home。
risk warning
The risk of rising raw material prices, the risk of less than expected demand, the risk of repeated epidemics, the impact of exchange rate fluctuations, and the risk of chip shortages and price increases.
(Article Source:Sinolink Securities）