Key investment points
2023&2024Q1 The growth rate of net profit attributable to the parent company of the household appliance industry is higher than the growth rate of operating revenue. In 2023, the household appliance (Shenwan) industry will achieve operating revenue of 1499.327 billion yuan, up 6.77% year on year; The net profit attributable to the parent company was 111.682 billion yuan, up 13.75% year on year. In the first quarter of 2024, the operating revenue will reach 372.964 billion yuan, with a year-on-year growth of 8.05%; The net profit attributable to the parent company was 26.242 billion yuan, up 10.67% year on year.
Policies promote the development of household appliances industry
On March 13, 2024, the State Council issued the Action Plan for Promoting Large scale Equipment Renewal and Consumer Goods Trade in, to support home appliance sales enterprises to jointly produce enterprises and recycling enterprises to carry out trade in promotions.
On May 17, 2024, the People's Bank of China issued a number of notices, explicitly abolishing the lower limit of the national housing loan interest rate, reducing the down payment ratio of housing loans and the interest rate of provident fund loans, and introducing affordable housing refinancing. The adjustment of the central bank's housing loan policy this time is conducive to reducing the down payment burden and cost of residents, enhancing the ability and willingness to purchase houses, and is expected to boost the growth expectation of the household appliance market.
In April 2024, the export amount of household appliances increased by 17.80% year on year. According to the data of the General Administration of Customs, the total export of household appliances in April 2024 was 63.249 billion yuan, an increase of 17.80% year on year; From January to April 2024, the cumulative export of household appliances reached 221.684 billion yuan, up 16.40% year on year. By category, in April 2024, the export value of electric fans, air conditioners, refrigerators, washing machines, vacuum cleaners, microwave ovens and LCD TVs increased by 29.10%, 10.80%, 23.70%, 12.60%, 9.30%, 5.30% and 28.50% year on year respectively; From January to April 2024, the cumulative export amount of electric fans, air conditioners, refrigerators, washing machines, vacuum cleaners, microwave ovens and LCD TVs increased by 22.20%, 7.00%, 30.40%, 21.80%, 17.60%, 6.20% and 14.90% year on year respectively.
Investment advice
The fundamentals of the household appliance industry have improved, the export data has increased, the policy encourages the exchange of old appliances for new appliances, and the intensive introduction of real estate policies is conducive to the medium and long-term development of the household appliance industry.
1) For white household appliances, it is suggested to focus on Haier Zhijia, Midea Group and Gree Electric; 2) For small household appliances, it is suggested to focus on Stone Technology and Supor;
3) For kitchen and bathroom appliances, it is suggested to pay attention to boss appliances.
Risk warning
Price fluctuation risk of raw materials; Risk that exports are not as expected; Downstream real estate sales less than expected risk; New product development is not as risky as expected.
