Fund position increase, the performance of China Daily News exceeds expectations, hidden opportunities in small household appliances sector

 Fund position increase, the performance of China Daily News exceeds expectations, hidden opportunities in small household appliances sector

Another small appliance leader, Supors share price has also reached a record high.

Everbright Securities Analysts such as Jinxing said that in the short term, changes in the prosperity of small kitchen appliances are crucial to the rise and fall of its share price. From the recovery progress of offline catering and the growth of takeout, as well as the side verification of online retail of rice / flour / coarse cereals and convenient fast food, people still eat out cautiously in the second quarter, and most families still cook at home frequently, which makes the demand for innovative kitchen appliances still high.

Multi functional cooking boxes, electric lunch boxes, bread machines, sandwich machines, tableware disinfection cabinets and other innovative categories have become black horse, and sales continue to rise.

In the medium and long term, Everbright Securities suggests paying attention to high-quality companies that can create their own alpha in the business cycle.

Everbright Securities takes the target of small household appliances with the above performance exceeding expectations as an example: the systematic advantages of bear electric in the supply chain, R & D and brand are not very obvious, but they do exist and are in continuous iteration; the business model of Xinbaos manufacturing business and brand business advancing hand in hand and spiraling upward has entered a positive cycle; SUPOR can better grasp the cost performance requirements of new categories We also have good resource endowment in multi product line R & D and multi brand operation.

It is recommended to pay attention to Xinbao, Jiuyang, Supor and Xiaoxiong, and to Feike.

In addition, public funds are also continuing to increase positions in small appliances. As of July 23, 2020, the data of the top ten heavy positions of public funds in the second quarter of this year have been fully disclosed. The proportion of household appliances increased significantly from 26.3% to 62.3% in the small sector. SUPOR, Xinbao shares, Jiuyang shares, bear electric appliances heavy position shareholding ratio slightly increased.

Zhang Lichong, an analyst at Anxin securities, said the internal logic of the increase may be: 1) although the domestic epidemic situation eased in the second quarter, it still had a certain impact, and consumers demand for food and beverage at home was higher than that in the same period of last year. 2) Small household appliances online consumption habits have been strengthened, irreversible. 3) The online operation of small appliance companies is becoming more and more mature. The new small household appliances are popular with young consumers because of their high appearance and novel functions. The marketing methods are mature, and the content marketing models such as MCN with goods and little red book can effectively enhance the brand influence and promote sales.

Source of this article: Financial Association Author: Wei La editor | Wang Tianyong responsible editor: Zhong Qiming_ NF5619