| Air conditioning | | | | White |
| , Refrigerator, washing machine and other white | | | | Valuation of the company relative to the historical |
| Home Appliances | | | | perspective has been a significant discount (white |
| Second-quarter domestic sales growth slowed, | | | | valuation relative to the market valuation of 0.86 |
| because of the following points: in the first quarter is | | | | times the historical average multiple of 0.91 times), |
| expected to slightly positive air conditioning dealers, | | | | we believe that there is underestimation of the value, |
| delivery volume higher; air conditioning sales | | | | not much room down is the safer side defensive |
| accounting for the higher rainfall south ones, on the | | | | industry configuration. If the real estate of the |
| air conditioning sales have a negative impact; inflation | | | | second half in line with our expectations, that is an |
| inhibition of terminal economic environment consumer | | | | area of real estate sales down 10%, corresponding |
| demand, and the weather is not very strong | | | | to 2.5% decline in air conditioning demand, then sales |
| correlation | | | | growth will be better than market expectations, the |
| Refrigerator | | | | industry will rebound in the best catalyst for the |
| , | | | | valuation. |
| Washing machine | | | | Our four key tracking performance of the company's |
| And other large home appliances sales in May also | | | | mid-year report is still good growth: expected Gree, |
| found a sharp slowdown in growth. | | | | Supor, Midea and Haier's revenue growth was 30%, |
| Industry will enhance the advantage of the plight of | | | | 35%, 50%, 25 %; net profit growth of 100%, 35%, |
| the brand market position. (1) 34 Market growth is | | | | 30% and 35%. |
| still good growth in 12, with 34 network advantage | | | | Investment case |
| of the brand will continue to benefit. (2) The industry | | | | Investment rating and valuation |
| needs to end and cost-side pressures will promote | | | | The short term, our industry's rating to "neutral." |
| the survival of the fittest. Market hot for many small | | | | Encounter the second quarter, "cool summer" |
| and medium born brand is being phased out, industry | | | | weather blow, industry growth is slowing down, while |
| growth is still the best brand Gree, Haier, Midea brand | | | | the economic slowdown, demand for various types |
| this line. (3) growth of high-end products well, but the | | | | of home appliances significant signs of slowing. |
| growth of foreign brands than domestic brands, why | | | | White according to the history of valuation, we |
| not? Cost pressures, the foreign brands trying to | | | | believe that valuation than the market currently white |
| pass through price increases cost pressures, but the | | | | overall valuation discount level is already lower than |
| economic downturn affecting the demand | | | | the historical average (white valuation relative to the |
| experience, pass the conductivity weaker, while the | | | | market valuation of 0.86 times the historical average |
| relative advantage of a price advantage of domestic | | | | multiple of 0.91 times), the valuation is safer. If |
| brands is made for better performance. | | | | growth in the second half of the industry trends |
| Steady growth the first half. Although the May trade | | | | better than the second quarter, the valuation will |
| data disclosed by a wide margin decline, but the first | | | | rebound. |
| 5 months of comprehensive point of view, the | | | | Key assumptions point |
| growth rate remained relatively stable. In addition to | | | | Assumptions within the real estate sales on the |
| air conditioning, the total sales of home appliances | | | | impact of air conditioning lagged half a year, and |
| continues to maintain growth above 20% growth. Air | | | | decoration-driven air-conditioning demand of new |
| conditioning factors by short-term weather a | | | | homes accounted for 25%; export growth is |
| temporary downturn. Although the air conditioning | | | | consistent with the first half; products on schedule to |
| because of the weather factors that causes low | | | | achieve structural adjustment to the pressure of |
| growth in the short term the situation there, but the | | | | rising costs for raw materials pass . |
| view from the price movements of air conditioning | | | | Different from the general public's understanding |
| products, 1-May, the average rose nearly 5%, still | | | | Market may think: in the first half of the growth |
| continue to optimize the product structure. Improve | | | | trend is likely to mean that white industry growth |
| the energy efficiency of air conditioning industry is | | | | inflection point, a serious slowdown in growth will be |
| facing the industry upgrade. | | | | the trend, and the real estate industry's negative |
| Valuation discount relative to the market has been | | | | impact on the air conditioning will be larger, interim |
| low by historical standards. From a valuation | | | | results will be lower than the industry expected. |
| perspective, the current | | | | |