Why are home appliance stocks keen to invest in photovoltaic energy storage industry?
From the perspective of household appliance enterprises, choosing to invest in photovoltaic energy storage industry is more likely to see the development prospects and potential market demand in this field. Compared with the traditional household electrical appliances industry, photovoltaic energy storage is in a period of accelerated expansion. Household electrical appliances enterprises are deeply deploying photovoltaic energy storage, which can not only further enhance the scale of enterprise revenue, but also share the policy dividend and market dividend of photovoltaic energy storage industry. In this view, this is a good business.
Some home appliance giants have the title of "cash cow". In the face of the huge annual cash flow, for listed companies, they should either increase dividend distribution to enhance their own investment attraction, or increase investment layout to pave the way for the development and expansion of enterprises in the future.
From the perspective of the acquisition action and investment layout of household appliance enterprises in recent years, they prefer the sunrise industry at the growth stage. Their choice of photovoltaic energy storage industry also meets this condition. At least in the future, it is still full of imagination. In addition, depending on the technical and manufacturing foundation accumulated by the household appliance giant for a long time, it can play a better integration effect in photovoltaic energy storage and other fields, enabling its own products.
After years of rapid development, the development of the household appliance industry began to show signs of differentiation, and the entire industry entered the process of accelerating the survival of the fittest. In the face of fierce market competition and market demand saturation, appliance giants are also actively considering the issue of transformation and development.
Taking Gree Electric as an example, since 2017, the revenue and net profit have been almost at the bottleneck. From the perspective of listed companies, to maintain the investment attractiveness of enterprises, in addition to the performance growth of listed companies, it can also achieve the purpose of improving the stock attractiveness by improving the dividend ratio, increasing the share repurchase and cancellation efforts, etc. Not only Gree, but also many household appliance enterprises are faced with the problem of slowing down the growth of revenue and profit more or less.
To open the bottleneck of enterprise revenue growth and open a new profit breakthrough, we need to increase market research and development, and find a better breakthrough through cross-border investment, cross-border acquisition and other ways. From the perspective of enterprises, we should take advantage of our cash cow to actively layout the track industry. Once the layout is successful, we can quickly improve the revenue space of enterprises. At the initial stage of the layout, we will certainly increase the scale of investment and research and development efforts to occupy the market share as soon as possible. This process is obviously very intense.
There is also a certain reason for Gree to choose photovoltaic energy storage. Although Gree's revenue is highly dependent on air conditioning, as a product with high energy consumption, it may achieve unexpected results with the help of photovoltaic energy storage and other technologies. On the basis of traditional air conditioners, a series of photovoltaic energy storage products can be created through the empowerment of advanced technology, which can enhance the imagination of enterprises, and even realize the transformation of the industry track.
Although home appliance giants have deployed photovoltaic energy storage industry in succession, whether it affects the valuation and pricing of listed companies and their market value scale depends on the actual income proportion of photovoltaic energy storage and other businesses. If the proportion is very small, it can only indicate that it is a tentative behavior, which has very limited impact on the valuation pricing and market value scale of listed companies.
For home appliance giants, although they are eager to find new profit breakthroughs, in general, the actual proportion of new business income is not high, and they are still in the stage of continuous investment and increased research and development. It is still too early to talk about a significant increase in profit space or the transformation of the industry track.
