Household appliances: 4-quarter investment strategy taking into account the valuation and earnings – washing machines, LCD TV – Network Appliance Industry-hc360 HC
Large
White
Still super-distribution. Basic logic is: Pak electric domestic demand strong (peak sales of up to 50%), foreign demand in the warmer; and industry structure is very solid, Gree, Midea, Haier share in their respective areas of strength continued to increase, leading companies
Sell
Income with certain guarantees; in leading enterprises continue to increase market share, brand more focused context, leading the company's control of the terminal capacity is very strong, raw material price increases, cost pressures will lead companies to transfer out, and in the process of raw material prices decline , the leading company will control the end-product prices decline, eventually the decrease in prices of end products is much smaller than the decrease in prices of raw materials, thereby significantly improve gross margin, while
Home Appliances
Relatively low margin sales, its net profit is very sensitive to changes on the margin, which is the leading home appliance company's sales revenue this year, but net profit surged down the most important reason, the future can also promote the leading home appliance company's profitability steadily, we that the appliance is to determine the company's future earnings, if the macroeconomic and gradually to improve, still have much room for profit; but the leading home appliance company's valuation is not high, in 2009 only 18 times PE. Taking into account the uncertainties and potential profit growth, the valuation of 18 times the level of course, can also be under the super-distribution.
2
Washing machine
Companies can actively participate in various investment logic. Washing machine industry demand is relatively stable in 2009 extended domestic market since the washing machine before the fast growth of 1-year increase of 10.7% in July, exports decreased slightly, the overall situation better. Industry structure, the company is made as of the most influential brand, market-first name, second-tier brands in the United States and the system (including the Little Swan, Rongshida),
Matsushita
So the basic pattern of clear and very orderly competition with each other to form the company's gross margin levels are high, earnings ability. Hefei key investment target
Sanyo
, Enterprise conditions are good, technology accumulation, brand reputation, the level of production technology are good, in 2008 the new leader took office, forge ahead, research, production and marketing a comprehensive reform, the future will continue the rapid growth of earnings of three consecutive 50% annual compound growth; Little Swan in the United States of support, step by step integration in place, will usher in combining endogenous and extension of a large increase in leaps and bounds, larger space for future growth, the market value of at least double.
Black
Industry operating environment continued to improve since the fourth quarter of 2008, panel reversed a long-term shortage situation, domestic TV manufacturers the right to speak with the panel makers increase; panel prices diving, the cause
LCD
Television prices of diving machine, and thus a large number of active demand; flat-panel television on the one hand speed up the spread in the city, while the rapid development of the 34 markets, domestic brand TV companies began to show edge channels, greatly weakening the home appliance chain Gome, Suning and other status, plus on the domestic brand market more flexible and higher levels of the supply chain, pulling away from the home appliance chain, the domestic brands in 34 markets far more than foreign brands, domestic brands market share is expected to gradually improve, Hisense TV will become the largest beneficiaries. Shenzhen Konka and TCL CRT sales shrink in place when there are investment opportunities.
Frequent appliance related policies, on the whole, beneficial home appliance manufacturer, but the specific results vary, remains to be seen.
Secondary market has shown at least some policy passivation. The current market environment, relevant policies are favorable of course frequent, but more important is the overall macroeconomic warming, businesses to enhance their core competitiveness.
I am an expert from Chinese Manufacturers, usually analyzes all kind of industries situation, such as chemical glow sticks , children’s place mats.
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