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Guan Leiming

Technical Director | Java

Home appliance sector: a beacon of hope for a counter-trend rise

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1. Introduction: Staying against the tide

Recently, the stock market has been volatile, but the home appliance sector has shown unique resilience amid the market turmoil. Although the impact of inflation and rising interest rates has become increasingly prominent, the home appliance industry has shown a remarkable rebound. This is not a coincidence, but is due to the strong growth momentum and solid market position of the home appliance industry itself.

2. Rising against the tide: the growth engine of the home appliance sector

Why can the home appliance sector remain strong despite the rising trend? The answer lies in its unique growth momentum:

  • Global consumer demand growth: Consumer demand at home and abroad continues to be released, especially in the European and American markets. As the destocking effect gradually subsides, demand has rebounded, becoming a new growth engine for the home appliance industry.
  • Technological innovation drives: Breakthroughs in new battery technologies and the rapid development of smart homes, green environmental protection and other fields have brought new opportunities and development space to the home appliance sector.
  • Leading Enterprises Contribution: Leading companies in the home appliance industry, such as Midea Group, Gree Electric Appliances, Hisense Home Appliances, etc., continue to inject vitality into the market with their strong R&D capabilities and market expansion capabilities.

3. Leading enterprises: driving the development of the home appliance industry

Leading companies play an important role in the market and drive the development of the entire industry:

  • Lepu Medical: By focusing on the medical and health field, Lepu Medical continues to explore new technologies and products to bring users a more convenient lifestyle.
  • Stone Technology: With its innovative technology and strong R&D capabilities, Stone Technology occupies an important position in the global market and will continue to promote the development of the home appliance industry.
  • Midea Group: As a leading company in the home appliance industry, Midea Group has always adhered to the business philosophy of "pursuing excellence and serving the public" and continuously expanded its global market.

4. P/E analysis: The advantages of a low P/E ratio

The price-to-earnings ratio of the home appliance sector is generally in a low range, reflecting its potential investment value:

  • Industry as a whole: The rolling P/E ratio of the home appliance industry is 12.59 times (as of the close of August 26), which is superior to the industry average (the 10-year percentile value is 10.78%).
  • Company Differentiation: Companies with price-to-earnings ratios below the industry average, such as Oriental Electric Heating, Gree Electric Appliances and Changhong Huayi, have active market performance and are worthy of attention.

5. Low P/E companies: worth watching in the future

In addition to the leading enterprises, some low P/E companies also show great potential:

  • Oriental Electric Heating: With its professional technology and high-quality products focused on the electrical appliance field, Dongfang Electric Heating occupies an important position in the market.
  • Gree Electric Appliances: Gree Electric's strength in the market cannot be underestimated. Its continuously innovative products and services have won the recognition and trust of consumers.
  • Changhong Huayi: Changhong Huayi focuses on high-end home appliances and continues to attract users with its strong brand power and technological advantages.

6. Investment Advice: Prudent Investment Approach

When choosing an investment direction, investors need to make assessments based on their own risk tolerance and market analysis to avoid blindly following the trend.

7. Looking to the future: unlimited possibilities for the home appliance sector

The future of the home appliance sector is full of infinite possibilities. With the continuous advancement of technology and the growth of consumer demand, the home appliance industry will continue to maintain a positive development trend and bring more returns to investors.

8. Java development and home appliance industry: Fusion technology promotes the future

The application of Java development technology in the field of financial technology can help us better analyze market data, predict trends, and make smarter investment decisions.

2024-08-27