1. Report Background: Washing Machine Shipment Data for January-June 2012
In June 2012, the total sales volume of washing machines in the industry was 3.82 million units, which was basically the same as the same period of last year.
Of which, 2.02 million units were sold domestically, a sharp drop of 12.1% year-on-year and 1.8 million units exported, a year-on-year increase of 18.1%.
In June, Haier’s washing machine achieved a total sales volume of 830,000 units, an increase of 6.5% year-on-year, and a market share of 21.8%, an increase of 1.3%. The Department of the United States sold 50 units in June, a year-on-year drop of 36.3, with a market share of 13.2%. Hefei Sanyo achieved sales of 220,000 units in June, down 5.9% year-on-year, and the market share was 5.6%.
In the first half of 2012, the total shipments of the washing machine industry totaled 26.94 million units, an increase of 1.9% year-on-year; of these, domestic sales totaled 16.87 million units, which represented a year-on-year decline of 4.9% and exports of 10.07 million units, a year-on-year increase of 15.8%.
In the first half of the year, Haier achieved a total of 6.35 million units of sales, an increase of 6.9% year-on-year, and a market share of 23.6%, up 1.1 percentage points. In the first half of the year, Midea's total sales volume was 3.82 million units, a decrease of 34.8% year-on-year and a market share of 14.2%. Hefei Sanyo total sales of 1.48 million units, an increase of 10.5% year-on-year, the market share of 5.5%, an increase of 0.4 percentage points year-on-year.
2. Our analysis and judgment
(1) Short-term pressure on the growth of the washing machine industry. Since 2012, due to the impact of the macro economy and high base, the domestic demand for washing machines has been weak and sales have been sluggish, but exports have maintained a relatively high growth, mainly from the popularity of washing machines in developing countries such as the Middle East and North Africa. In the first half of the year, the overall washing machine industry maintained a moderate growth. The future growth of the washing machine industry is under pressure: 1) The economic situation is uncertain; 2) The popularity of washing machines has been high for many years, so it is difficult to increase the penetration rate significantly. In the future, the sales subject will rely more on updating demand, and the industry will maintain stable growth over the long term. 3) After the policy was withdrawn, the effect of the new policy was not obvious. At present, the inventory of washing machines has reached the point. With the advent of the peak season in the second half of the year, it is expected that the decline rate of the industry will gradually narrow.
(b) The industry structure has changed. The shrinking strategy of the United States and channel adjustments have caused a decline in the market share of washing machines. Haier and Hefei Sanyo to seize the opportunity, with a strong product competitiveness to seize the market share has improved. The short-term US market share has declined, but the company's operations are steadily advancing along the direction of transformation.
(3) The lack of demand led to the decline in the prices of bulk raw materials and the increase in industry profitability. Since 2012, the economic downturn has brought about sluggish demand and the prices of major raw materials have gradually dropped. In July 2012, the LME copper price fell back to around US$7,500, while the Brent crude oil hovered at US$100/bbl.
The fall in raw material prices is conducive to the recovery of profitability of home appliance companies.
3. Investment Advice
The industry's demand is not strong, accelerating the integration of internal companies in the industry. The market share of leading enterprises has increased significantly, giving the industry a “carefully recommended†rating. After July, the effect of home appliance policies gradually emerged. Haier and Hefei Sanyo’s high-end products accounted for a relatively high proportion. The high-efficiency and energy-saving technologies were well-prepared, the products were highly competitive, and the benefits were more obvious, giving a “recommended†rating. With the strategic adjustment of the United States in place, the Little Swan gradually maintains its market share and the decline rate gradually narrows. The policy subsidy brings the company higher performance flexibility and gives it a “carefully recommended†rating.
4. Risk Warning: Policies to stimulate lower-than-expected downstream demand.
In June 2012, the total sales volume of washing machines in the industry was 3.82 million units, which was basically the same as the same period of last year.
Of which, 2.02 million units were sold domestically, a sharp drop of 12.1% year-on-year and 1.8 million units exported, a year-on-year increase of 18.1%.
In June, Haier’s washing machine achieved a total sales volume of 830,000 units, an increase of 6.5% year-on-year, and a market share of 21.8%, an increase of 1.3%. The Department of the United States sold 50 units in June, a year-on-year drop of 36.3, with a market share of 13.2%. Hefei Sanyo achieved sales of 220,000 units in June, down 5.9% year-on-year, and the market share was 5.6%.
In the first half of 2012, the total shipments of the washing machine industry totaled 26.94 million units, an increase of 1.9% year-on-year; of these, domestic sales totaled 16.87 million units, which represented a year-on-year decline of 4.9% and exports of 10.07 million units, a year-on-year increase of 15.8%.
In the first half of the year, Haier achieved a total of 6.35 million units of sales, an increase of 6.9% year-on-year, and a market share of 23.6%, up 1.1 percentage points. In the first half of the year, Midea's total sales volume was 3.82 million units, a decrease of 34.8% year-on-year and a market share of 14.2%. Hefei Sanyo total sales of 1.48 million units, an increase of 10.5% year-on-year, the market share of 5.5%, an increase of 0.4 percentage points year-on-year.
2. Our analysis and judgment
(1) Short-term pressure on the growth of the washing machine industry. Since 2012, due to the impact of the macro economy and high base, the domestic demand for washing machines has been weak and sales have been sluggish, but exports have maintained a relatively high growth, mainly from the popularity of washing machines in developing countries such as the Middle East and North Africa. In the first half of the year, the overall washing machine industry maintained a moderate growth. The future growth of the washing machine industry is under pressure: 1) The economic situation is uncertain; 2) The popularity of washing machines has been high for many years, so it is difficult to increase the penetration rate significantly. In the future, the sales subject will rely more on updating demand, and the industry will maintain stable growth over the long term. 3) After the policy was withdrawn, the effect of the new policy was not obvious. At present, the inventory of washing machines has reached the point. With the advent of the peak season in the second half of the year, it is expected that the decline rate of the industry will gradually narrow.
(b) The industry structure has changed. The shrinking strategy of the United States and channel adjustments have caused a decline in the market share of washing machines. Haier and Hefei Sanyo to seize the opportunity, with a strong product competitiveness to seize the market share has improved. The short-term US market share has declined, but the company's operations are steadily advancing along the direction of transformation.
(3) The lack of demand led to the decline in the prices of bulk raw materials and the increase in industry profitability. Since 2012, the economic downturn has brought about sluggish demand and the prices of major raw materials have gradually dropped. In July 2012, the LME copper price fell back to around US$7,500, while the Brent crude oil hovered at US$100/bbl.
The fall in raw material prices is conducive to the recovery of profitability of home appliance companies.
3. Investment Advice
The industry's demand is not strong, accelerating the integration of internal companies in the industry. The market share of leading enterprises has increased significantly, giving the industry a “carefully recommended†rating. After July, the effect of home appliance policies gradually emerged. Haier and Hefei Sanyo’s high-end products accounted for a relatively high proportion. The high-efficiency and energy-saving technologies were well-prepared, the products were highly competitive, and the benefits were more obvious, giving a “recommended†rating. With the strategic adjustment of the United States in place, the Little Swan gradually maintains its market share and the decline rate gradually narrows. The policy subsidy brings the company higher performance flexibility and gives it a “carefully recommended†rating.
4. Risk Warning: Policies to stimulate lower-than-expected downstream demand.
Shenzhen Isource lighting Co., Ltd , https://www.isourceled.com