On June 3, Oriental Fortune Securities Research Institute released the 2019 semi-annual investment strategy research report for the home appliance industry.

The research report believes that the marginal improvement of real estate in the second half of 2019 will be clearer, which is expected to drive kitchen appliance companies to achieve performance recovery.

The research report pointed out that the correlation between kitchen appliances and real estate is still high. As the trend of fine decoration increases, the influence of real estate may increase. It believes that kitchen appliances still have great growth potential.

Growth There are two reasons:

1) From the perspective of ownership, the penetration rate of traditional cigarette stoves still has room for improvement. As of 2017, the number of range hoods per 100 households in urban areas was 73.74, and the number of range hoods per 100 households in rural areas was 2. 0.42 units. If calculated based on one unit per household, there is still room for improvement in urban ownership from the theoretical saturation value. The rural market has broad prospects, and the growth space of kitchen appliances is worth looking forward to in the long term;

2) From a category perspective, the continued expansion trend of new products is irreversible. New products such as embedded kitchen appliances and dishwashers are still in their infancy in first- and second-tier cities. Compared with the penetration rate of emerging kitchen appliances in developed countries, there is still a lot of room for growth.