Consumption upgrade is conducive to the home appliance industry

Release Time:

2018-04-24 19:44

The home grid purchase market continues to heat up, and the stimulus to home appliance consumption is becoming more and more obvious. According to the "2017 House Purchase Market Analysis Report", in 2017, my country's B2C house purchase market reached 49.9 billion billion yuan, an increase of 6.27 year-on-year; the penetration rate of online shopping in the home appliance industry hit a record high, reaching 6.26. The three major e-commerce platforms in the home grid purchase market have formed a relatively stable market structure. JD.com, Tmall and Suning are competing, leaving little room for other platforms.

Home appliance consumption upgrade is entering the outbreak period, high-end, health is the focus of attention. The past three years have been the budding and cultivation period of consumption upgrading, and the next 3-5 years will officially enter the growth and outbreak period of consumption upgrading. Large household appliances represented by air conditioners, refrigerators and washing machines are on sale and continue to develop in the "big" direction. Not only the scale and capacity are getting larger and larger, but as the product structure changes, the unit price of each customer has also risen sharply. GFK China data show that the unit price of air conditioners rose from 788 yuan in 2 years to 2016 yuan in 2017. The unit price of washing machines (online) rose from 2 yuan to 945 yuan. The unit price of refrigerators (online) rose from 1 yuan to 273 yuan. The enhancement of user health awareness has pushed up the willingness to consume, and health considerations have become an important indicator for users to purchase home appliances. According to GFK China, the growth rate of online retail sales of water purifiers rose from 1.418 percent in the previous year to 782.1980 percent in one year; retail sales of electric toothbrushes rose 11 percent year-on-year, of which online retail sales rose 0 percent; and online retail sales of purifiers rose from 37.5 percent to 2017.92 percent year-on-year.

In 2018, the sales growth rate of air conditioning categories in the white goods industry is likely to decline. After the 2017 valuation increase, there is limited room for overall valuation improvement in the future and segmentation will continue. The 2018 home appliance index may show a pattern of "high before and low after.

In terms of valuation, the current price-to-earnings ratio of the home appliance industry is about 22.33, a 4.300 per cent premium to the CSI 57 index, which is at the median level. At present, the valuation of the home appliance sector is moderate, and the performance in 2018 is expected to grow steadily, which still has investment value. It is recommended to pay attention to the steady growth of white electricity, cycle improvement of black electricity, rapid growth of LED lighting. Specific targets can focus on Gree Electric, Midea Group, Hisense Electric, TCL Group, Op Lighting, Sanxiong Aurora, etc. Ping An Securities