Yesterday, the two cities rebounded in an all-round way, with individual stocks rising or falling, and the 'make money effect' regaining strength. One of the highlights of the market was the reversal of the previous decline in the appliance sector.
In general, as a durable consumer product, the home appliance industry has strong development stability, especially in the 3rd and 4th markets. From the accelerated trend of consumer upgrades and the growth logic of individual stocks, there are still large investment opportunities in the sector outlook. .
Appliances plate grabbed again
From yesterday's rally in Shanghai and Shenzhen, the sentiments of the two cities seem to have been released in the recent two-day rally. In the context of the recent weakness of the FBMACE, the strong sector is once again facing 'shuffle'. Afterwards, the value of the home appliance sector was re-emphasized by the market.
Even in the yesterday’s market, where the sector was up and down, as of the close, the appliance sector still held the top spot with a 3.65% gain, which was 0.80% of the food and beverages in the second place. This has not been seen for a long time. The uptrend has also made the market look back again. Of course, the contrarian interpretation of the sector is inseparable from the re-gathering of funds on the sector. Wind data shows that in terms of the net inflow of main capital, the household appliances industry yesterday took up 964 million yuan. 28 second-tier industries in the SWS are second only to the non-ferrous metal sector, which shows that the funds in the market yesterday favored the sector.
Recalling the previous callback of the home appliance sector, it can be described as 'step by step'. The sector’s “darling” from the previous funds has become an 'abandoned' overnight. With the recent index differentiation and callback, the 'monetary effect' has been persistently biased. The weak market conditions have made household appliances, food and beverages, etc., sectors with larger gains in the early stage become targets of funds for profit taking. Due to sentiment, in the stock market, investors' operations to “catch up and sell” are also similar. Make household appliances as a whole have a larger adjustment than other sectors.
However, the characteristics of the home appliance industry itself determine that its expectation of 'explosive' growth is unrealistic, and it is more likely that there will be sustained industry growth. Since last year, the industry has been 'a ride away' until the beginning of the year. The long-term correction, valuation has declined. Analysts pointed out that the logic behind the strong continuity of the household appliances sector is the improvement of spending power. Statistics show that in 2017 China’s household appliance market reached 1.7 trillion yuan, a year-on-year increase of 9.8%. When standing at the moment, the appliance sector is still at a new starting point for a long period of time.
The fundamentals have not changed
CSC Securities said that in the previous period, due to the pessimistic expectations of the owner’s electrical appliances, the pessimistic expectations of the sector were easing to a certain extent.
However, compared with the current situation, the agency is still more optimistic about the quality of the leading stocks within the sector. The agency pointed out that for leading companies, the competitive landscape, industrial chain advantage is still a key factor in the success of follow-up performance continues. At the same time, The recent valuation callback has also led to a significant increase in the value of the allocation of the leading players in the sector. The steady performance of the sector, the blue-chip leader in household appliances with comparatively advantageous valuations, and the stable growth performance in the future will still meet the requirements for the allocation of long-term funds.
Recently, the National Bureau of Statistics released retail sales data for consumer goods. In March 2018, the total retail sales of social consumer goods was 2999.4 billion yuan, a nominal increase of 10.1% year-on-year. Among them, retail sales of household appliances and audio-visual equipment in March rose by 74.6 billion yuan, a year-on-year increase of 15.4%.
According to the data, Tianfeng Securities commented that the current small home appliances industry benefited from significant consumer upgrades. On the one hand, the rural market performed outstandingly; on the other hand, online channels grew at a rapid rate. The data shows that the small household appliance market in rural areas is in terms of categories and possessions. There is still vast room for improvement, and at the same time, due to the continuous warming of the bottom for many months, black power has recovered.
However, from the transaction point of view, Northeast Securities pointed out that before the home appliance sector had double valuations and performance of the 'Davis double click', due to the current home appliance segment performance and valuation has reached a historical high degree of match, and Due to the rising cost of raw materials and other factors, the agency expects that the sector's valuation will continue to rise in 2018. It is expected that the market will continue to diverge. The major market outlook is expected to be driven by individual stocks whose performance exceeds expectations.