(Original title: Hisense Home Appliances repurchased A shares, and H shares soared nearly 20% in response)
January 3 Financial Associated Press news (Editor Hu Jiarong)Today, Hisense Home Appliances (00921.HK) shares soared due to the positive impact of the A-share repurchase. As of noon, the company was up 18% to HK$10.16.
Note: Hisense home appliances H-share performance
According to the announcement of Hisense Home Appliances’ A shares, it plans to repurchase the company’s A shares through centralized bidding operations. The proposed repurchase amount is not more than 199 million yuan and not less than 99 million yuan; number does not exceed 11.7 million shares; the shares repurchased this time will be used for employee stock ownership plans.
At the same time, Hisense announced the 2022 A-share restricted share incentive (draft) plan. The number of restricted shares to be allocated is 29.618 million shares, 3.28% of the total amount, and 2, 17% of the total share capital of the company.
The concession price of restricted shares in this incentive plan is 6.64 yuan per share. The total number of incentive objects granted by the incentive plan is 596, including middle managers and basic personnel who worked in the company (including subsidiary holding companies, the same as below) when the company announced the incentive plan.
Affected by the above announcement, Hisense Home Appliances A shares rose 10.02% to 14.49 yuan.
Note: Hisense Home Appliances A-share trend
Real estate data should boost and catalyze demand for appliances
In addition to the good yield, the recovery of the real estate market has relaunched the demand for household appliances. GF Securities has previously emphasized that major appliances belong to the post-cycle real estate category, and improving real estate data is expected to drive improvement in demand for major appliances. The real estate sector exerts a strong driving effect on the sales of major appliances: according to calculations, the correlation between kitchen appliances is around 70% and that of white goods is around 30%.
Reviewing the story, the sales volume of major appliances has a certain correlation with the completion of real estate. The match rate of kitchen appliances is high, and the correlation with completion is better and slightly early; the match rate with cover rigidity of air conditioners in household appliances is relatively high, and the correlation with the completion is also Wash over ice. In the first three quarters of 2022, domestic sales of major appliances have been under pressure. If the housing market recovers in 23 years, sales of major appliances are expected to gradually improve.
Judging from the current market performance, the valuation of the major home appliance companies is still relatively cheap, and the improvement in real estate data is expected to drive the recovery of its valuation. At present, the valuation of home appliances and kitchen appliances is still at a historically low position, and the cost performance is excellent. Looking back on history, bottoming out in real estate data may help major appliance firms recover in valuation. If real estate data picks up under policy stimulus, the valuation of home appliance and kitchen appliance companies should be reset.
