Zhitong Financial APP learned that China Securities released a research report saying that the disclosure of the annual report and the first quarterly report was completed, the white power industry achieved outstanding growth, the overall revenue side achieved steady growth, the gross profit margin increased, the expense ratio was stable, and the net profit growth rate in 23 years hit a new high after the epidemic. Decompose the revenue drivers: In 23 years, the growth rate of domestic and foreign sales of white goods by category and division was relatively balanced, and the overseas growth rate of Chinese enterprises far exceeded that of foreign counterparts. On the one hand, the industry's performance is stable, with both the hope of going overseas and the catalyst of the short-term domestic trade-in policy, on the other hand, the dividend yield is relatively considerable, and the comprehensive attractiveness of the white power sector has been significantly enhanced.
Q1: Where are the revenue growth drivers coming from?
The growth of the air conditioning industry mainly depends on domestic sales, the domestic demand for ice washing is relatively stable, and the growth mainly depends on export sales. In 23 years, the growth rate of domestic and foreign sales was balanced, but the export sales accelerated significantly in the second half of the year.
Q2: What is the difference between the performance of first-line white goods and second-line white goods?
The revenue and profit of second-tier white electricity are higher than those of first-tier, and the proportion of CR3 is declining. The reasons behind it are not only the easing of competition under the pursuit of profitability by the leaders, but also the gains brought by the strengthening of change under the learning effect of the second-tier targets.
Q3: What is the performance of overseas revenue?
In recent years, the overseas growth rate of China's white power enterprises has continued to be higher than that of overseas friends, and the competitiveness has been continuously strengthened. Midea's all-round overseas landing from organizational structure to functional lines, Haier gives full play to its brand advantages and cultivates intensively; Hisense accelerates the promotion of its overseas own brand influence and deepens localization construction; Meiling's domestic manufacturing power spills over, and overseas finds another way.
Q4: What are the changes in domestic channels and how are high-end brands performing?
Midea's main DTC transformation, Haier vigorously promotes scenario-based sales, Hisense continues to build its own store system, Gree promotes channel flattening, and the growth rate of high-end brands has picked up.
Q5: Which company has the strongest R&D investment?
Midea Group's R&D investment continues to grow, and it still maintains the highest R&D investment in the industry, while Haier has increased its investment in R&D in recent years, and since 2021, the R&D expense ratio has maintained the highest level in the industry.
Q6: How to break down the reasons behind the rise in profitability?
In terms of net profit margin, the listed white power has achieved positive changes for 9 consecutive quarters, mainly driven by the increase in gross profit margin, and the reasons behind it are: 1) the overall stable cost of raw materials, 2) the competitive landscape is better, and the demands of leading enterprises are more in profit improvement.
Q7: What are the reasons behind the cash flow differentiation of white electricity?
Q1 Midea's cash flow is good, and the decline in cash flow of Gree and Hisense home appliances is mainly due to the decrease in the cash ratio of goods sold, but it is still at a healthy level.
Q8: Is there room for improvement in the follow-up dividend rate?
The net cash flow from operating activities of the company is basically more than double the net profit, and the monetary funds on the books are abundant; in the short term, the company does not have significant capital expenditure, and the dividend rate is expected to continue to rise.
Q9: How to predict the impact of trade-in activities?
The government set up the stage, the enterprise sang, and the marketing expenses that originally needed to be publicized were saved because of the unified publicity at the national and provincial government levels. Enterprises can convert some of the savings in marketing expenses into direct consumption subsidies. Midea and Gree's trade-in subsidies will not affect their profit margins.
Q10: How is the recent performance of the white power sector attributed?
What do you think about the follow-up?The rise in the sector in 2024 will be accompanied by a double increase in valuation and performance. The performance of the white power industry is stable, not only with the hope of going overseas, but also with the catalysis of the short-term domestic trade-in policy, and the attraction of dividend yields. In 2024, although the valuation will expand, the valuation improvement of first-line targets will be relatively limited, and there will be no significant overvaluation, and there will still be opportunities in the future.