On the evening of February 26, Boss Electric released the 2017 Annual Results Express, which had less than expected market growth in FY17. On February 27, the Express Morning Express led to a chain reaction in which Boss Appliances Co. Ltd dropped to the limit.
In China's home appliance industry, kitchen appliances have been the market segments with steady growth and promising prospects. As a leading appliance manufacturer in the kitchen and electric appliance industry, to a certain extent, it plays a 'barometer' of industry operation and market sentiment. Role in the kitchen appliance industry benchmarking boss appliance slowdown and the resulting stock limit, it means the kitchen appliance industry is about to usher in the turning point?
Performance less than expected boss electrical shift
According to the release of the boss electrical 2017 Annual Results Express, 2017 boss electrical operating income 6.999 billion yuan, an increase of 20.78%, operating profit of 1.616 billion yuan, an increase of 21.11%, net profit attributable to parent company of 1.45 billion yuan , An increase of 20.18% over the same period of last year.
Although Boss Electric revenue and profits in 2017 still maintained a substantial growth rate, but this result is obviously slightly less than in the past.In the 2012-2016 five years, Boss appliances have maintained rapid growth, the fifth The annual revenue growth rate was 27.96%, 35.21%, 35.24%, 26.58% and 27.56% respectively, while its profit growth was 43.34%, 43.87%, 48.95%, 44.58% and 45.32% respectively, both of which exceeded 40% In the first three quarters of 2017, the revenue growth and profit growth of owner appliances were 25.15% and 36.95% respectively.
Contrary to past performance, the capital markets are clearly not satisfied with the performance of Boss Appliances in 2017. On February 27, after dragged down by its disappointing performance, Boss Appliances Limited dropped its limit after the opening bell.
Wang Gang, the deputy general manager and board secretary of the boss, said in the telephone exchange conference on February 26 that the boss's electrical appliance business situation mainly refers to the first and second tier cities since the second half of 2016, while the boss positions the high-end appliances in the first and second tier markets He said further that the current needs of the kitchen industry showed '28 open', that is, 80% for the new demand, 20% for the update needs, so the boss appliances Affected by real estate.
In addition, the sharp rise in raw material prices, e-commerce channel product prices led to slow growth online, 85 million channel costs deductions, the channel invested a lot of resources, but ineffective and brand investment efforts increased over the same period last year more than 46 million tax revenue Return and other factors, but also have an impact on the performance of the boss electrical growth.
In response to the current market conditions, Boss Appliances lowered its growth expectation and lowered the expectation of revenue and profit growth in the next five years to around 20%. '20% is the bottom line,' Wang emphasized.
Electricity market has huge potential Appliance is still optimistic about the boss
As China's kitchen and electrical industry leading enterprises, the boss has been leading the electrical kitchen appliances industry, the rapid development of the boss electrical appliances in the past few years, the size of China's kitchen electrical industry all the way soared, almost equal to billions of gates. Expected, does it mean the kitchen and electric appliance industry will soon bid farewell to the era of high growth?
'In the long run, the boss's judgment on the development of kitchen appliances still holds that China is in the middle stage of development of the kitchen appliance industry and will have long-term development and will need to lay the foundation for long-term development.' 'Wang Gang said in his opinion, he wants to maintain a reasonable increase Speed, the most important point is driven by the channel to promote the promotion of products and technologies, product technology to promote there are two main points, namely, the update of the traditional category itself and the introduction of new categories.To this end, the boss appliances for the traditional categories will be introduced every year New models, and in the new category, the boss plans to launch electrical appliances according to market needs such as cleaning sinks. 'Chinese people's kitchen will certainly be more and more diverse, this trend extends down the kitchen must have something to do. '
In fact, kitchen electrical appliances are still the most promising sub-sectors in the growth of China's home appliance industry currently.According to the data calculated by China Yokang, in 2017, the kitchen and electric appliances market in China and the traditional kitchen appliances continue to maintain steady growth, with range hoods, The sales volume of gas stoves and disinfection cabinet increased by 12.8%, 11.5% and 8.8% respectively over the same period of last year. Some emerging products maintained the momentum of rapid growth. For example, the market size of dishwashers reached 4.33 billion yuan, an increase of 119% Kitchen scale market reached 6.57 billion yuan, an increase of 38.1%.
In many industry insiders view, under the control of the real estate, the kitchen appliances market will inevitably be divided.A securities firm appliance industry analysts said that since the kitchen is still a typical real estate after the cycle of industry, in 2018 a second and second line Market demand and market will certainly be 34 lines differentiation, 34 lines demand is better, a relatively large pressure on the second and second line.
Wang Gang said the owner of the sub-brand fame positioning in the three or four line cities, so the boss plan to increase electrical appliances in the three or four lines every year 400-500 stores to encourage the rapid growth of well-known brand in the next 2-3 years to do 10 A billion or so scale to the third and fourth tier cities to expand.
The aforesaid securities firm admitted frankly that as the kitchen and electrical appliance industry itself has plenty of room to grow and the competitive landscape is very good, he is still very optimistic about the performance growth of the boss electrical appliances over 20% in the next three to five years.
On the 27th of February, a number of securities brokerage agencies announced their efforts to open up the electrical appliances of the boss, and CSC said that as the leading enterprise in kitchen electrical appliances, the boss electrical appliances still have a strong brand influence. The expansion of the product categories in the future is in line with the 34 Essence Securities said the pressure from the sinking line market will become the main driving force for revenue growth.Ensurance said that the boss of the electrical stage of the pressure, but the company's outstanding competitiveness in the long run can still maintain the industry-leading position.
Zuo Yi-ku, general manager of Yikang Brand Center that even if the real estate market down may have a certain drag on the growth of the boss appliances in 2018, but can not be ruled out in the process of sinking channels, the blue-chip industry and the future of leading enterprises Growth and market share will be further laid and expanded, so the future growth of the boss appliances still hold a good position.