The performance of the three household appliance giants has declined: the epidemic affects the future demand of offline sales or picks up.

SMM News: as of today, except for three companies in Shanghai and Shenzhen stock markets that failed to disclose on schedule, the other 3986 companies have issued semi-annual reports for 2020, and the three giants Midea, Gree and Haier have also disclosed their interim results one after another.

The results show that Midea's revenue in the first half of the year was 139.067 billion yuan, down 9.56 percent from the same period last year; net profit was 13.928 billion yuan, down 8.29 percent from the same period last year; and basic earnings per share was 2.01 yuan.

According to its semi-annual report, in the first half of 2020, the total network sales of the United States exceeded 43 billion yuan, an increase of more than 30 percent over the same period last year, accounting for 49 percent of domestic sales, ranking first in the whole net. and has maintained the first industry position in the category of household appliances in the mainstream e-commerce platform for eight years in a row.

Gree's revenue in the first half of the year was 69.502 billion yuan, down 28.57% from the same period last year; net profit was 6.362 billion yuan, down 53.73% from the same period last year; and basic earnings per share was 1.06 yuan. The company intends to distribute a cash dividend of 10 yuan (including tax) to all shareholders for every 10 shares.

For the first half of 2020, the company's main business income decreased by 40.35% compared with the same period last year, which was mainly due to the restriction of terminal market sales and installation activities and the weakening of terminal consumer demand in the air-conditioning industry during the novel coronavirus epidemic.

With regard to the performance of Midea and Gree, Tianfeng Securities believes that under the sudden epidemic, Midea's business strategy has been rapidly adjusted to take the lead in ensuring exports. In the first half of this year, priority was given to export sales, and domestic sales were greatly affected and recovered, and online was better than offline. Therefore, the significant industry opportunities in the first half of the year lie in export and online, and the early layout of export and online manufacturers performed better in the China report.

Another giant, Haier Zhijia, made a net profit of 2.78 billion yuan in the first half, down 45.02% from the same period last year. On July 31, it announced that it would privatize Haier Electric with more than 40 billion yuan, making A-share and H-share listed companies "two in one". Haier Zhijia believes that after its privatization of Haier Electric Appliances, the two sides will gain synergy.

The decline in the collective performance of home appliance giants is caused by the characteristics of large volume, complex installation, strong dependence on offline channels and so on. According to data released by the China Household Appliances Research Institute and the National Household Appliance Industry Information Center, the domestic market retail volume of the home appliance industry in the first half of the year was 336.52 billion yuan, down 18.4% from the same period last year. Dragged down by the market in the first quarter, cumulative sales of air conditioning motors fell 17.0 per cent in the first half of 2020 compared with the same Under the influence of the epidemic, the domestic market rebounded significantly in the second quarter, while export sales were obviously under pressure in the second quarter.

However, Haitong Securities believes that after the first half of the year, industry demand has been basically affected by the epidemic in the short term, and the follow-up is optimistic about the industry repair brought about by the recovery of demand.

From the Aowei weekly data, home appliances since the third quarter of the cumulative growth rate across the board, white electricity and kitchen electricity is particularly obvious. Investment in real estate sales also increased sharply in July. According to historical data, completion was released in the fourth quarter. Huaan Securities said that it maintained the judgment of the completion and restoration of real estate throughout the year and continued to pay attention to the role of the home appliance sector in the real estate post-cycle industrial chain.

With regard to the prospects of the three white power giants in the second half of the year, Tianfeng Securities believes that the recovery of industry demand or inventory digestion (such as air conditioners) will drive the prosperity of the white power industry up, and in the second half of the year may see the continuation of Midea's advantage in shipments, and is expected to continue to lead the overall sales champion from the perspective of the whole year. Continue to recommend Midea and Haier Zhijia. It is suggested that at the same time, we can follow the actions of Gree Electric Appliances in the channel reform.

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