Industry information
Weekly appliance industry: industry downturn, highly hard to find
2017-12-23 08:53:40

Last week appliances market review 

     Last week appliances sector performance is still relatively sluggish, industry revenue 0%, 0.8% weaker than the Shanghai Composite Index. From the case since the beginning of the year, the Shanghai Composite Index close to home appliances and plate movements, the relative income is not obvious, the whole little hot industry, performance is relatively stable, the index is relatively stable trend. 

     Structural point of view, a strong trend of small home appliances segment, while the traditional white and black appliances appliance trend is weak, which is also associated with the four major home appliances segment in August sales data coincide with poor backgrounds. 

     Individual stocks last week, the three best-performing stocks were Haili Metal, Zhejiang, the United States and Japan Tempur shares in more than 9%. Traditional leading home appliance Gree, Midea Group, Qingdao Haier rose 1.2%, respectively, - 1.3% and 1.6%, the first two movements is poor, while Qingdao Haier in Shanghai and Hong Kong through the concept is still relatively strong. 

     The latest industry data and reviews 

     Online industry data released in August four appliances, air-conditioning sales growth decline, refrigerator, washing machine sales of negative growth, the industry as a whole continues to show a recession. Large short-term absolute return sector probability is small, but the defense value outstanding. We recommend investors focus on outlook cautious appliances sector. 

     Air Conditioning: weaker domestic demand dragged down air conditioning sales. Air conditioning in August total sales rose 4.54%, lower than the growth rate of total sales in fiscal year 5.35%, domestic sales is mainly due to weaker sales fell, and in August domestic sales up only 8.77%, lower than the previous August's 17.35 percent. High base last year and this year's market downturn in demand is the root cause of declining growth trend. Exports down 5.22 percent year on year in August, compared with the previous eight months narrowed. 

     Ice Wash: sluggish domestic demand, sales continued negative growth. The performance of internal and external air conditioning needs Instead, refrigerator export market continues rosy, rose 13.9 percent in August, but domestic appetite, before August fell 3.7%, a slight increase of 0.9% overall. Washing machine is all negative growth in export, the former co-fell 2.1% in August. 

     LCD TV: sales began to improve. Although the January to August this year, domestic shipments of LCD TVs cumulative 29,574,000 units, down 5.9%, but in August the domestic LCD TV shipments grew 10.9%, continuing the positive growth trend in July, exports still remain high . 

     Investment advice: industry downturn, highly hard to find 

     Short-term absolute returns home appliances segment probability is small, but the value of outstanding defense sector. We recommend investors focus on cautious outlook, especially stable performance, relatively high valuations white and small appliances worth grasp. 

     1) round of appliances overall or not, ranked third, or even less than the Shanghai Composite Index 

     2) sector as a whole is extremely low valuations, are at historically low absolute relative 

     3) the overall profitability of the plate prominent, ROE and profit growth are at the forefront of 

     4) Evidence: home appliances segment stronger defense capability. 

     5) Evidence: peak season, October significant excess returns. 

     Risk Warning: Industry appetite, A shares systemic risk