Qingdao Haier (600690): Promotion of cost-effective products April-May washing machine, refrigerator online retail improvement

Qingdao Haier (600690): Promotion of cost-effective products April-May washing machine, refrigerator online retail improvement
The company’s recent situation Aowei Cloud Network monitors China’s home appliance retail market. Comment on Haier ‘s performance from April to May: 1) From April to May, Haier released more cost-effective products online.April / May Haier’s online retail sales respectively replaced (washing machine) 40.5% / 34.9%, (refrigerator) 28.9% / 17.6%.2) The growth of Haier’s washing machines and refrigerators is mainly driven by the increase in average prices and 北京夜网 changes in strategy.3) Haier’s air-conditioning line continues to lose market share.However, Oakes was reported by Gree as a false standard energy efficiency, which may lead to changes in the market structure. The demand for air conditioners was weak in May, and the demand for refrigerators and washing machines was stable: 1) The air conditioner market entered a recession cycle in July 2018.From May to June 2018, air-conditioning retail sales exceeded expectations and this year exceeded the high base.In May, the air-conditioning online / offline retail market was changed to +13.1% /-19.1%, overall market returns.2) From January to May 2019, the retail market for washing machines and refrigerators is almost flat, and the online / offline retail markets are separated by (washing machines) +16% /-2% and (refrigerators) 12.2%深圳桑拿网 /-6.8%.Affected by the May Day promotion, the washing machine and refrigerator offline markets performed significantly better in May than in April, but in total, the market has changed significantly. Market price competition is within a reasonable range: 1) The rapid growth of market value demand has led to the online growth of the home appliance market, offline penetration, and average online retail price substitution.2) Online brands need to face Internet brands, and market competition is fiercer.The average online retail prices of washing machines, refrigerators, and air conditioners fell by 2 in May.6%, 5.4%, 2.1%, if you consider the gradual reduction of 4ppt, the average online retail price will fall within a reasonable range.3) In the offline market, leading companies pay more attention to consumption upgrades and the replacement of accumulated sales.The average offline transaction prices for washing machines, refrigerators, and air conditioners increased by 9 in May.4%, 11.2%, 2.6%. It is estimated to maintain 2019/20 EPS forecast1.32 yuan / 1.51 yuan.Maintain recommendation level and maintain A-share target price of 20.25 yuan (15x / 14x 2019 / 20e P / E, 24% increase space); maintain the D-share target price of 1.57 euros (10x / 9x 2019 / 20e P / E, up 60%); the company’s current A shares correspond to 12x / 11x 2019 / 20e P / E, and D shares correspond to 6x / 5×2019 / 20e P / E. Risk Market demand fluctuation risk.