The Price Of Raw Materials Has Risen Significantly, And The Kitchen Electricity Market In The First Half Of The Year

Intern Huang Kaixin reports from Guangzhou

Recently, vantage shares (002035. SZ) and boss electric appliances (002508. SZ) have released the first half of the year's performance.

According to the report, vantage's revenue from January to June this year was 2.659 billion yuan, up 59.46% year on year; The net profit attributable to shareholders of listed companies was 239 million yuan, up 45.42% year on year; The net profit attributable to shareholders of the listed company after deducting non recurring profit and loss was 227 million yuan, up 51.75% year on year.

In contrast, the boss of electrical appliances in the rise, although slightly inferior, but compared with the same period last year, the overall performance is still very eye-catching.

The financial report disclosed that in the first half of the year, boss electric appliances recorded revenue of 4.326 billion yuan, up 34.72% year on year; The net profit attributable to shareholders of listed companies was 790 million yuan, up 29.08% year on year; The net profit attributable to the shareholders of the listed company after deducting non recurring profit and loss was 746 million yuan, with a year-on-year increase of 35.38%.

In fact, the kitchen and sanitation industry in the first half of the year has been warmer. According to AVC data, in the first half of 2021, the overall scale of kitchen and bathroom market (including range hood, gas stove, disinfection cabinet, dishwasher, embedded, integrated stove, electric heating and burning heat) reached 72.6 billion, with a year-on-year increase of 25.8%, including 29.5 billion yuan in the first quarter, up 67% year-on-year, and 43 billion yuan in the second quarter, with a year-on-year growth of 8%.

According to the analysis of industry insiders, since the first quarter of last year was in the early stage of the outbreak of the epidemic, the market scale of the kitchen and electric industry decreased greatly, resulting in a small base, and the market began to improve gradually in the second quarter, so the growth rate of the industry in the first quarter of this year was relatively large. In addition, in the post epidemic era, consumers tend to consume enjoyment products and value preservation products. The long service life and small replacement demand of durable goods such as kitchen appliances are also one of the reasons for the small increase in the second quarter.

Outstanding export performance

Specific to the performance of various channels, vantage's channels with a large increase in the first half of the year are new retail channels, online channels and overseas channels.

According to its financial report, the operating revenue of vantage's new retail channel was 103 million yuan, up 153.24% year-on-year; Online channel business revenue was 807 million yuan, up 65.53% year on year; The business income of overseas channels was 407 million yuan, up 131.05% year on year.

Prior to that, pan Ye Jianghua, President of vantage, said in an interview with the 21st century economic reporter that export business driving was an important factor in the company's performance in the first half of the year. Due to the influence of foreign epidemic situation, many orders are transferred to China, and Vantage is also one of the enterprises enjoying the export dividend.

In the first half of the year, the overseas sales channel performance of boss electric appliance also increased significantly. The data shows that during the reporting period, the company's overseas business income was 23.7119 million yuan, accounting for only 0.55% of the total operating revenue, but increased by 120.35% year on year. The East China market is still the main market of boss electric appliances, contributing 2.055 billion yuan of revenue in the first half of the year, accounting for 47.50% of the total revenue.

The rise of raw material price leads to the decline of gross profit rate

From the situation of each major category, the gross profit margin of the main categories of the two kitchen electric enterprises declined in the first half of the year. Among them, the gross profit rate of the cigarette maker of boss electric appliances was 58.2% in the first half of the year, down 0.21% year-on-year; In the first half of the year, the gross profits of vantage's cigarette machines, cookers and water heaters were 999 million yuan, 651 million yuan and 511 million yuan, respectively, down 0.45%, 3.36% and 4.99% year-on-year.

Among them, the rising price of raw materials is the main reason for the decline of gross profit rate. Boss Electric said that the company's main raw materials are stainless steel, cold-rolled sheet, copper, glass and so on. Since the fourth quarter of last year, the prices of main raw materials have risen sharply, exerting certain pressure on the company's operating performance. "If the prices of main raw materials remain high or continue to rise in the second half of 2021, it will have a greater impact on the company's operating performance," said boss electric

And vantage said in the financial report that steel, glass and other raw materials accounted for a high proportion of the main business costs. During the reporting period, the prosperity of the raw material industry continued to rise. In order to cope with the risk of rising prices of raw materials, the company conducted pressure through supply chain, cooperation with industrial chain, and establishment of strategic partnership with key material suppliers. At the same time, through the improvement of production process, reduce product material consumption, improve production efficiency and capacity, to dilute fixed costs.

Driven by the price of raw materials, the average prices of all kinds of kitchen and bathroom products showed a certain upward trend. According to the total data pushed by AVC, the average price of the whole channel of the lampblack machine rose 11% from January to June, 12% of the stove was up, 16% of the disinfection cabinet was up, 13% was up for dishwasher, 1% for embedded single function machine, 3% for embedded composite machine, 11% for integrated cooker, 2% for electric water heater and 7% for gas heater.

In addition, the growing proportion of online is also one of the reasons for the decline of average kitchen and bathroom prices. Taking the average price of embedded composite machine as an example, according to AVC statistics, in the "618 promotion" of three years in 2019, 2020 and 2021, the average price of embedded composite machine top 5 brands continues to decline. Among them, the boss's average price decreased from 7310 yuan in 2019 to 5083 yuan, while vantage's average price was relatively stable, and the fluctuation range remained around 100 yuan. The average price of Fangtai dropped the largest from 9916 yuan to 5989 yuan.

Generally speaking, although the top brands in the kitchen industry performed well in the short-term recovery market in the first half of the year, the overall performance of small and medium-sized brands was still mediocre. The industry expects that under the background of last year's high base, growth in the second half of the year will still face greater pressure, and the whole year will basically present a rhythm trend of high before and low after.