Social zero data: retail sales of household appliances and audio-visual equipment grew by 8.9% in June compared with the same period last year. According to the data, retail sales of consumer goods in June 2021 increased by 12.1% (- 0.3pct) compared with the same month last year, and retail sales of consumer goods above the quota of household appliances and audio-visual equipment increased by 8.9% (+ 5.8pct). (note: the figures in parentheses are the month-on-month change in the growth rate of the current month compared with the previous month)

The growth rate of the completed area of commercial housing rebounded, and the real estate data continued to pick up. According to the data, in June 2021, the sales area of commercial housing increased by 6.7% (- 4.5pct) compared with the same period last year, the new construction area of commercial housing increased by 3.4% (+ 6.3pct), and the completed area of commercial housing increased by 63.2% (+ 54.6pct) compared with the same period last year. In June 2021 compared with June 2019, the sales area of commercial housing increased by 11% compared with the same period last year, the newly started area of commercial housing increased by 6% year-on-year, and the completed area of commercial housing increased by 56% compared with the same period last year. The positive growth of commercial residential sales area in June is expected to lead to a further pick-up in white electricity and kitchen electricity sales.

White electricity: the export of air conditioners continues to grow steadily. Shipments: production of 15.28 million air conditioners, YoY-12.2% (January-June 86.53 million, YoY+14.9%); sales of 16.5 million units, YoY-3.9%, increased by 8.7% compared with 2019 (January-June 86.37 million, YoY+13.6%). Of these, 10.36 million units were sold domestically, with an increase of 0.3 per cent in YoY-11.6%, compared to 2019 (44.62 million in January-June, YoY+12.0%); 6.15 million were exported, and YoY+12.9%, increased by 26.7 per cent compared to 2019 (41.76 million in January-June, YoY+15.3%).

Average price: air conditioning: online YoY+16.8%, offline YoY+6.3%; refrigerator: online YoY+19.9%, offline YoY+13.7%; washing machine: online YoY+14.3%, offline YoY+9.7%.

Small household appliances: the online boom continues to be high, and the performance of clean small household appliances is eye-catching. According to the data of Owei Cloud Network, the cumulative online retail sales of various categories from January to June in 2021, small household appliances continue to grow at a high level. Among them, the cleaning appliance YoY+42%, floor sweeping robot YoY+39%, health pot YoY+24%. Specifically, according to the Amoy data, the sales monitoring caliber of the whole network (Taobao + Tmall + Tmall supermarket + Tmall International), June 2021 small home appliances YoY+6.29%, Supor small home appliances YoY+9.90%, Jiuyang YoY-17.11%, Covos YoY+87.66%, stone technology YoY+104.93%, bear appliances YoY+1.57%, Mofei YoY-28.07%.

Kitchen electricity: online and offline sales performance is eye-catching. According to the monitoring data of OviCloud Network, the cumulative retail sales of various categories from January to June 2021: disinfection cabinet: online YoY-7%, offline YoY-5%;

Range hood: online YoY+27%, offline YoY+19%; gas stove: online YoY+20%, offline YoY+12%.

Investment suggestion: the marginal improvement of domestic sales of air conditioners in June, and the continuous high-scene demeanor of small household appliances. In view of this, we suggest to continue to pay attention to the big power leaders with significant competitiveness: Haier Zhijia, Midea, Boss Electric Appliances, and the small home appliance leaders with more room for growth and good growth: JS Global Life.

Risk tips: rising prices of raw materials; sharp fluctuations in the exchange rate; weakening demand in the industry; deterioration of the competition pattern in the industry.