Consumer Discretionary Author: Yue Liu Editor: Luke Sheehan Oct 28, 2020 06:10 PM (GMT+8)

The home appliance sector is seeing benefits from the pandemic.

Image credit: Sidekix Media/Unsplash

On October 28, Robam disclosed the third-quarter report of 2020. The company saw CNY 5.63 billion revenue for the first three quarters of 2020, a year-on-year increase of 0.02%. Net profit was CNY 1.12 billion, a year-on-year increase of 3.43%. Net profit in the third quarter was CNY 511 million, a year-on-year increase of 22.9%.

The company specializes in kitchen appliances production, such as range hoods, gas stoves and disinfection cabinets. According to the revenue structure in the first half of 2020, the proportions of range hoods and gas stoves were 51.4% and 23.6%, respectively, showing a declining trend. The total proportion has dropped from 92% in 2010 to 75% in 1H 2020. The company continues to weaken its dependence on a single category, enriching and diversifying its product structure.

Robam, Siemens and Fotile positioned high-end brands, with the average price of range hoods exceeded CNY 4,500, far exceeding the industry average. Vantage, Sacon and Sakura are in the second echelon of the industry, focusing on mid-to-high-end products. Midea and Haier focus on mid- to low-end products, while China Macro and Wanward are positioned the low-end sector. The industry competition pattern is relatively stable.