Major issues in the lighting industry Comments: Government forced procurement to send energy-saving lighting Dongfeng
Hu Yali -
Stronger than the market (maintained)
Matters: Yesterday, the listed companies in the lighting market rose sharply. Zhejiang Sunshine (600261) opened higher and went faster, Foshan Lighting (Market Forum) rose 9.31%, and Snowlight (Market Forum) rose to close at 6.69%. On the same day, Xinhuanet reprinted the Chinese government website to report the “Notice of the State Council on Establishing a Government's System of Compulsory Purchasing Energy-Saving Productsâ€. The attached “Government Procurement List of Energy-Saving Products†shows that the relevant companies that passed the product certification as early as March 15, 2006 have the above-mentioned Three lighting companies (Snow Wright used the original name as Nanhai Huaxing Optoelectronics Industrial Co., Ltd.).
The promotion of government procurement of energy-saving products has accelerated and deepened. The government procurement list of energy-saving products benefits the industry's energy-saving products including home appliances, office electronics, energy-saving electric light sources, power equipment and sanitary ware. Sub-industry leaders such as fluorescent lamps (energy-saving lamps) in the air-conditioning and electric light source industries in the home appliance industry can obviously benefit.
Investment suggestion: The policy guidelines and implementation progress of mandatory procurement by governments at all levels can be closely followed.
The energy-saving lighting industry has a long business cycle. The government's compulsory procurement is expected to promote the demand upgrading of the mass consumer market and promote industrial concentration. The listed companies are all high-quality companies in the industry. We maintain the rating of the lighting industry “stronger than the marketâ€.
In the absence of clear orders to increase the performance of the company, we recommend investing in the industry leaders, and pay attention to the companies involved in the list of compulsory procurement products. Maintain a Buy rating on Gree Electric Appliances (0.15 and 1.68 yuan in 2007 and 2008 respectively, target price of 50 yuan) and Qingdao Haier (Market Forum) overweight rating (EPS and EPS of 0.56 and 0.73 respectively in 07 and 08) Yuan, the price range is 22-25 yuan). In the medium-term strategy report, we mentioned that the performance of Zhejiang Sunshine, the leader of the energy-saving lamp industry, has a large seasonal fluctuation and the information opacity has caused the valuation discount. There is no obvious improvement in the recent tracking. It is expected that the performance release rate will still be lower than expected, but the industry growth trend and The company's competitiveness is clear, the valuation attractiveness is significant, and Zhejiang Sunshine's overweight rating is maintained (EPS in 2007 and 2008 is 0.67 and 0.85 yuan respectively, and the price range is 25-30 yuan).
Risk factors:
The competition pattern of the lighting industry has not been quickly concentrated in large enterprises, the price transmission mechanism is not smooth, and the industry profit margin is at a low level caused by price competition.
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