After the crash, the valuation of the home appliance sector began to enter the investment zone. Recently, a number of brokerages released a research report that the appliance sector as a whole has been at the bottom of valuations, while the white sector valuation is second only to financial services. Although there is currently no increase in catalysts, it already has investment value.
Exports fell
The economic downturn in Europe and the United States once increased the market’s pessimistic expectation on home appliance exports. However, some brokers believe that the major home appliance companies actually export to Europe and the United States account for less than 30% of the total exports, contributing the company’s profits to less than 10%, and this need not worry too much.
The GF Securities report pointed out that from the perspective of the three major white power companies, the export percentages of Gree, Midea, and Haier in 2010 were 17%, 28%, and 10%, respectively. Among them, exports to Europe and the United States accounted for less than 30% of exports, exports of Europe and the United States contributed to corporate profits accounted for less than 10% of export contribution company profits. In recent years, the three major white power companies have stepped up the pace of internationalization and have gradually expanded their market share in developing countries. The share of developing countries with a large population will continue to increase, and the economic downturn in Europe and the United States will have limited impact on company performance.
As for the slowdown in sales growth of large-scale chain stores, the market expects that GF Securities believes that, in fact, Gree, Midea, and other leading white-power companies account for about 10% of the company’s total revenue through sales of large-scale chains. The major chains are mainly concentrated in the first and second-tier cities, and the sales growth sources of Dabaidian are more from the growth of the third and fourth-tier markets. The growth of the two companies is not directly comparable.
According to the 2011 semi-annual report, Gree and Midea's revenue increased by 60% and 59%, respectively, while Gome and Suning increased by 20% and 23% respectively over the same period. It was verified that the revenue growth of the leading white-chip companies mainly came from the rapid growth of self-built channel revenue.
Air-conditioning sub-sector or still stand out
Benefiting from the high growth of the air-conditioning industry, the growth of Gree Electric Appliances and Midea Electric Appliances led the growth of the Whiteboard segment by 46% in the first half of the year, which is significantly faster than other sub-sectors. Most securities companies judge that the air-conditioning sub-sector will still stand out in the second half of the year.
The Shanghai Securities Report pointed out that the rapid growth of domestic air conditioners in the first half of the year was mainly due to the strong domestic demand in the tertiary and tertiary markets and the recovery of European and American economies and the growth of exports in emerging markets. In the second half of the year, the preferential policies for home appliances to the countryside in the home appliance replacement sector and in the sector area will soon expire, but the impact of air-conditioning on the expiration of preferential policies will be minimal, and the home air-conditioning industry will maintain a relatively high degree of prosperity.
GF Securities also insists that the pattern of white electricity industry is stable, and the air-conditioner market, Gree and Midea, together account for more than 60% of the domestic market share. Under the dual oligopoly, the industry has a good ecology. Leading companies have strong cost transfer ability, and the future pattern will be strong. Hengqiang.
According to data from Everbright Securities, the current valuation of the home appliance sector has fallen to a lower position, the overall dynamic valuation is only 16 times. The valuation of white boards is second only to financial services, so Everbright Securities believes that the home appliance sector is already at the bottom and has investment value.
In fact, many brokers believe that the sharp adjustment of the previous stock price offers a good opportunity for buying in the medium to long term. GF Securities believes that the negative expectations of the household appliance industry are fully digested, and the current estimate reflects a low level of expectations. Gree scaled down to 10 times, the United States 13 times, Haier 9 times, the investment value highlights, and can gradually intervene in the long-term layout.
Dongxing Securities proposes to follow two home appliance stock selection logics: first, select high-growth air-conditioning industries, such as Gree Electric Appliances, Midea Electric Appliances, and Sanhua Co., Ltd.; Second, select the leading companies in the industry to maintain the fierce competition in the industry. Even to increase market share, the ability to control costs is also stronger than competitors, and profitability is stable, such as Hisense Electric, Boss Electric, Wanhe Electric, and Supor.
Exports fell
The economic downturn in Europe and the United States once increased the market’s pessimistic expectation on home appliance exports. However, some brokers believe that the major home appliance companies actually export to Europe and the United States account for less than 30% of the total exports, contributing the company’s profits to less than 10%, and this need not worry too much.
The GF Securities report pointed out that from the perspective of the three major white power companies, the export percentages of Gree, Midea, and Haier in 2010 were 17%, 28%, and 10%, respectively. Among them, exports to Europe and the United States accounted for less than 30% of exports, exports of Europe and the United States contributed to corporate profits accounted for less than 10% of export contribution company profits. In recent years, the three major white power companies have stepped up the pace of internationalization and have gradually expanded their market share in developing countries. The share of developing countries with a large population will continue to increase, and the economic downturn in Europe and the United States will have limited impact on company performance.
As for the slowdown in sales growth of large-scale chain stores, the market expects that GF Securities believes that, in fact, Gree, Midea, and other leading white-power companies account for about 10% of the company’s total revenue through sales of large-scale chains. The major chains are mainly concentrated in the first and second-tier cities, and the sales growth sources of Dabaidian are more from the growth of the third and fourth-tier markets. The growth of the two companies is not directly comparable.
According to the 2011 semi-annual report, Gree and Midea's revenue increased by 60% and 59%, respectively, while Gome and Suning increased by 20% and 23% respectively over the same period. It was verified that the revenue growth of the leading white-chip companies mainly came from the rapid growth of self-built channel revenue.
Air-conditioning sub-sector or still stand out
Benefiting from the high growth of the air-conditioning industry, the growth of Gree Electric Appliances and Midea Electric Appliances led the growth of the Whiteboard segment by 46% in the first half of the year, which is significantly faster than other sub-sectors. Most securities companies judge that the air-conditioning sub-sector will still stand out in the second half of the year.
The Shanghai Securities Report pointed out that the rapid growth of domestic air conditioners in the first half of the year was mainly due to the strong domestic demand in the tertiary and tertiary markets and the recovery of European and American economies and the growth of exports in emerging markets. In the second half of the year, the preferential policies for home appliances to the countryside in the home appliance replacement sector and in the sector area will soon expire, but the impact of air-conditioning on the expiration of preferential policies will be minimal, and the home air-conditioning industry will maintain a relatively high degree of prosperity.
GF Securities also insists that the pattern of white electricity industry is stable, and the air-conditioner market, Gree and Midea, together account for more than 60% of the domestic market share. Under the dual oligopoly, the industry has a good ecology. Leading companies have strong cost transfer ability, and the future pattern will be strong. Hengqiang.
According to data from Everbright Securities, the current valuation of the home appliance sector has fallen to a lower position, the overall dynamic valuation is only 16 times. The valuation of white boards is second only to financial services, so Everbright Securities believes that the home appliance sector is already at the bottom and has investment value.
In fact, many brokers believe that the sharp adjustment of the previous stock price offers a good opportunity for buying in the medium to long term. GF Securities believes that the negative expectations of the household appliance industry are fully digested, and the current estimate reflects a low level of expectations. Gree scaled down to 10 times, the United States 13 times, Haier 9 times, the investment value highlights, and can gradually intervene in the long-term layout.
Dongxing Securities proposes to follow two home appliance stock selection logics: first, select high-growth air-conditioning industries, such as Gree Electric Appliances, Midea Electric Appliances, and Sanhua Co., Ltd.; Second, select the leading companies in the industry to maintain the fierce competition in the industry. Even to increase market share, the ability to control costs is also stronger than competitors, and profitability is stable, such as Hisense Electric, Boss Electric, Wanhe Electric, and Supor.
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