标题：Gree Electric AppliancesAC sector still faced destocking pressure in January~February
发布日期：2016-03-22 14:56:59
内容： What's new In addition to Gree’s acquisition of Yinlong Energy: 1) the company saw domestic AC shipments slide -32% YoYover January~February 2016; 2) its cooperation with Suning under negotiation; 3) launched a high-end rice cooker withspokesperson, Ms. Dong Mingzhu; and, 4) launch of Dong Mingzhu’s “We media”. Comments AC shipments. 1) ChinaIOL: January~February domestic AC shipments -30% YoY to 5.16mn units (vs. Gree’s -32%YoY); exports +4% YoY to 9.31mn units (vs. Gree’s +6% YoY); and, 2) sector to face further destocking pressure in1H16. Considering the Summer peak season and 2015’s stagnant property sales, we expect the sector’s destocking toend in 2H16. Gree’s cooperation with home appliance chain channels. Following its long-term focus on exclusive store salesdue to Gome & Suning’s high channel expenses, Gree started to join hands with Gome in 2014 amid the changingmarket environment; Gree’s cooperation with Suning is also now under negotiation in 2016. As the AC market matures,Gree hopes to expand its sales network and market share, while Gome and Suning hope to strengthen their profitabilityby introducing excellent brands. Launch of high-end rice cooker. 1) On March 8, Gree held a campaign in Beijing to promote its high-end ricecookers; 2) with consumption upgrading underway in China’s rice cooker market, many domestic brands are seeking tosurpass Japanese brands by launching high-end products; and, 3) the press conference was held during the TwoSessions, which Dong Mingzhu attended as an NPC Member, and also featured famous Chinese finance writer, WuXiaobei, who detailed Chinese consumers’ love of Japanese-branded electronic toilet lids and high-end rice cookers.The launch of “We media” builds a communication platform for Chinese entrepreneurs; and, Dong Mingzhu hasbeen the spokesperson since 2014. Valuation and recommendation We maintain our 2015/16/17 EPS forecasts of Rmb2.30/2.48/2.69. We reiterate our BUY rating and TP ofRmb27.60, implying 12x 2015e P/E. Risks Volatility in market demand.
发布日期：2016-03-22 14:56:59
内容： What's new In addition to Gree’s acquisition of Yinlong Energy: 1) the company saw domestic AC shipments slide -32% YoYover January~February 2016; 2) its cooperation with Suning under negotiation; 3) launched a high-end rice cooker withspokesperson, Ms. Dong Mingzhu; and, 4) launch of Dong Mingzhu’s “We media”. Comments AC shipments. 1) ChinaIOL: January~February domestic AC shipments -30% YoY to 5.16mn units (vs. Gree’s -32%YoY); exports +4% YoY to 9.31mn units (vs. Gree’s +6% YoY); and, 2) sector to face further destocking pressure in1H16. Considering the Summer peak season and 2015’s stagnant property sales, we expect the sector’s destocking toend in 2H16. Gree’s cooperation with home appliance chain channels. Following its long-term focus on exclusive store salesdue to Gome & Suning’s high channel expenses, Gree started to join hands with Gome in 2014 amid the changingmarket environment; Gree’s cooperation with Suning is also now under negotiation in 2016. As the AC market matures,Gree hopes to expand its sales network and market share, while Gome and Suning hope to strengthen their profitabilityby introducing excellent brands. Launch of high-end rice cooker. 1) On March 8, Gree held a campaign in Beijing to promote its high-end ricecookers; 2) with consumption upgrading underway in China’s rice cooker market, many domestic brands are seeking tosurpass Japanese brands by launching high-end products; and, 3) the press conference was held during the TwoSessions, which Dong Mingzhu attended as an NPC Member, and also featured famous Chinese finance writer, WuXiaobei, who detailed Chinese consumers’ love of Japanese-branded electronic toilet lids and high-end rice cookers.The launch of “We media” builds a communication platform for Chinese entrepreneurs; and, Dong Mingzhu hasbeen the spokesperson since 2014. Valuation and recommendation We maintain our 2015/16/17 EPS forecasts of Rmb2.30/2.48/2.69. We reiterate our BUY rating and TP ofRmb27.60, implying 12x 2015e P/E. Risks Volatility in market demand.
