In the first half of 2020, the overall operation was under pressure, and Q2 recovered quickly. Income side: affected by the epidemic, the income of the 2020H1 home appliance industry declined seriously; the suppressed consumer demand of Q2 was released in 2020, and the income of various industries accelerated recovery. Profit end: the decline of the profit end of the 2020H1 industry as a whole is greater than that of the revenue side; 2020 Q2 industries accelerate the recovery, and the profit recovery of small household appliances is the fastest. Gross margin end: 2020H1 industry-wide gross profit margin has declined to a certain extent compared with the same period last year, of which White Power has the largest decline; in 2020, the gross profit margin of more than Q2 sub-sectors increased year-on-year. Period rate: in the first half of 2020, household appliance enterprises control expenses, and sales, management, research and development fluctuate to varying degrees.
Subdivision plate: large household appliances are affected, small household appliances are booming. 1) White electricity: the marginal improvement of Q2 is significant. At the income and profit end, affected by the epidemic, the Q1 revenue and profits of the white power enterprises decreased greatly, but Q2 accelerated its recovery, of whichHaier Smart HomeVs.MideaThe income side performed prominently, and Midea Q2 net profit growth became positive. Profitability, the white power enterprises due to greater promotion efforts, so Q2 gross profit margin is still declining. Future outlook: real estate completion and sales recovery drive white power enterprises to pick up in the second half of the year; from the perspective of advance collection, it is expected that white power enterprises will also usher in a rebound in revenue. 2) Kitchen electricity: the completion of the real estate leads to the recovery. On the revenue and profit side, the epidemic led to a serious decline in income and net profit in the first half of the year, but thanks to the gradual recovery of Q2 after the completion of real estate, the decline in income narrowed in the same period, of whichBoss Electric ApplianceThanks to the project channel to take the lead in the recovery, driving Q2 revenue and net profit improvement. Profitability, 2020H1 overall plate gross profit margin decline, Q2 decline narrowed. As the engineering channel with low gross margin is the first to recover, the change of product structure of each enterprise further reduces its gross profit margin. Outlook for the future: in terms of traditional kitchen electricity, the completion of the project will lead to a pick-up in sales, and the engineering end will continue to improve; integrated kitchen enterprises will strengthen their multi-channel layout and constantly infiltrate the market. 3) Lighting and civil electricians: the Q2 market is gradually recovering. Revenue and profit side: 2020H1 plate revenue decline is larger, Q2 accelerated improvement. Among themOpp lightingAndBull Group2020Q2 ushered in a significant recovery. In terms of profitability, the overall gross profit margin of 2020H1 and Q2 increased, of which the improvement of Q2 gross profit margin of Opu Lighting benefited from the cost dividend brought about by the decline in raw material prices. Outlook for the future: with the epidemic under control, offline retail accelerated recovery, lighting and civil electrical sector enterprises will accelerate recovery. 4) small household appliances: continuous high scene demeanor. On the revenue and profit side, the sales of small household appliances were better in the first half of 2020, and the overall recovery of the industry was faster, and Q2 accelerated, among which long-tail brands performed prominently. In terms of profitability, the gross profit margin of the small home appliance industry has declined slightly, and Q2 has accelerated significantly. In the first half of 2020, small household appliance companiesSuperiorForeign gross profit margin rose year-on-year. Follow-up outlook: the proportion of online channels in the small home appliance industry will be further improved, and the marketing strategy will become younger; in addition, the leader of small household appliances will begin to comply with the trend of the times, and the investment in small items will be increased.
An enterprise that pays attention to change. Each household appliance enterprise mainly carries on the reform from the channel and digital transformation. 1) Channel: Midea carried out level-by-level reduction reform; Haier Smart Home carried out the whole process reform and interests straightening out.Gree electric applianceCarry on the reform on the channel to realize the coordinated development online and offline. 2) Digital transformation: Midea adopts comprehensive digital and comprehensive intelligent transformation; Haier Smart Home carries out digital transformation to further improve the growth rate.
Investment advice. We suggest that attention should be paid to Haier Smart Home, Midea and Gree Electric Appliances in White Power (opening a new chapter in channel reform) and small household appliances.Jiuyang sharesAnd Supor, as well as the boss of kitchen electricity, electrician and lighting sector,Zhejiang MeidaThe investment value of Bull Group and Opal Lighting.
Risk hints: the epidemic affects the export of household appliances; the risk of exchange rate fluctuation; the risk of fluctuation of raw material prices.