Author|Ding Zhenyu, Editor|Gu Jinfeng
Source: Jufeng Investment Advisory, Good Stock Application
Since the beginning of this year, the performance of the home appliance sector has been eye-catching, with Hisense Home Appliances, Haier Smart Home, Midea Group, Gree Electric Appliances, etc. rising sharply, many of which have doubled their stocks.
The beautiful performance of the stock price of household appliances is not unrelated to the increase in the fund's holdings. As a representative of stable earnings and stable dividends, the home appliance sector is highly defensive, which is particularly outstanding during the market changes at the beginning of the year. Since 2023, the level of the fund's heavy position in household appliances has continued to rise, and 2024Q1 is close to the average level since 2017. Pay attention to Jufeng Investment Advisor (jfinfo)/good stock application, and the analysis and research report of the leading target of "Institutional Research and Selection" is waiting for you to get!
Judging from the fund data of the first quarterly report: the proportion of the white electricity sector in the overall heavy position market value of household appliances in 2024Q1 is 71%, +15.6pcts month-on-month, and the heavy stocks are still concentrated in a few leading targets, Midea Group/Haier Smart Home/Gree Electric Appliances/Hisense Home Appliances The market value of the heavy position reached 176/85/63/2.1 billion yuan respectively, respectively, compared with 23Q4 +53%/+45%/+72%/+129%; In 2024Q1, the home appliance parts sector accounted for the second largest proportion of the overall market value of home appliances, with a month-on-month increase of -13.1pcts to 12%, of which the market value of Sanhua Intelligent Control/DunAn Environment's heavy position was 5.2/700 million yuan, respectively, compared with 23Q4 -42%/-39%. The market value of the fund's heavy positions in small household appliances, kitchen and bathroom appliances, and black electricity accounted for -2.7/+0.8/-1.1pct month-on-month respectively, of which the market value of Roborock/Hisense Video/Robam Appliances/Feike Electrical Appliances was 33/32/4/300 million yuan.
Before 2017, Robam Appliances used to be a high-growth representative in the home appliance sector, and at the beginning of 2018, because of the slowdown in performance growth, the stock price fell by nearly two-thirds in 10 months. Since then, the stock price has rebounded from shocks, reaching the second highest level in history in 2021. At present, the company's share price is still 80% upside from its 2021 high.
From the perspective of performance: the company's earnings are stable, and the first quarter of 2023 and 2024 will hit a new high this year!
In 2023, Robam Appliances will achieve revenue of 11.20 billion yuan, a year-on-year increase of 9.1%, and net profit attributable to the parent company of 1.73 billion yuan, a year-on-year increase of 10.2%. In 2024Q1, the company achieved revenue of 2.24 billion, a year-on-year increase of 2.1%, and net profit attributable to the parent company was 400 million, a year-on-year increase of 2.5%. In 2023, the company's total dividend ratio will be about 55%, and the shareholder return plan for 2024-2026 is expected to pay dividends twice a year, and the dividend ratio will steadily increase compared with 2023, effectively consolidating investor confidence.
The company's cash distribution amount is 5.16 times the total amount of funds raised, ranking 66th among all A-shares, far higher than the market average!
In the real estate is still in a downward cycle, the company's performance is still achieving positive growth, the company's ability to resist risks can be seen, and the future of continuous high dividends is expected to enhance the company's value.
From a technical point of view, the company's share price has broken through the downward channel formed since June 2021, and in the short term, with the help of performance growth and the market heat of the home appliance sector, it will continue to expand upward.
However, there are certain concerns in the market about the continuous growth of Robam Appliances' performance: while achieving year-on-year growth in revenue and net profit, in 2023, in the online and offline market share performance of major product categories including range hoods, gas stoves, disinfection cabinets, embedded all-in-one machines, built-in electric ovens and built-in electric steamers, the market share of half of Robam Appliances products will decline compared with the same period in 2022.
However, looking at this data optimistically, it can show that the kitchen appliance market still has a lot of room for development. If the real estate market stabilizes in the future, the company's cost performance will be more prominent.
(Author: Ding Zhenyu Practicing Certificate: A0680613040001)
Disclaimer: The above content is for reference only and does not constitute specific operation advice, and you shall operate at your own risk and profit and loss