Market Watch: Air-conditioning Business Margins Or Lower Costs - Air Conditioning, The Stock Market
HC HVAC & R Network Factors such as rising copper prices
, the recent trade rumors air conditioning prices are expected to rise 10%. But analysts believe that the current air-conditioning is still in high gross margin, price increases is difficult, after the first quarter of this year, air conditioning manufacturers margins may decline.
Recent price increases air conditioning industry voice, the result of a rise in raw materials, especially copper significantly raised the air-conditioning costs. It is understood that the international price of copper has been from February 2009 to 21.75 yuan / kilogram to the current 50.84 yuan / kilogram, up more than 130% within a year, to an air conditioner average 6-7 kilograms of copper, alone , one air-conditioning costs on the increase of about 200.
China Industrial and Commercial Bank of China investment banking analyst Zhang Lin believes that the recent substantial increase in copper prices is affected by the Chile earthquake, but the earthquake did not cause significant copper production cuts will not undermine the relationship between supply and demand. "When the industry heard that air conditioning prices, because manufacturers want to lower raw material price increases pressure transmission."
Zhang Lin that the air conditioning industry to improve gross margins through price increases more difficult, because the current air-conditioning business margins remain high, the pressure of rising copper prices, enterprises can afford. Last year Financial Crisis for copper, aluminum and other raw materials prices fell, the price of air-conditioned terminal decline is not large, which increases the profit margins of manufacturers. 3-6 months due to air conditioning with the production cycle, due to lower raw material costs, third quarter last year, gross margins are at record high air conditioning industry.
She also believes that by increasing the cost impact of the first quarter of this year's gross margin will be air conditioning industry is a high point, and then will gradually decline each quarter gross margin, operating profit of more than a year higher than the sales growth rate Revenue growth situation will no longer appear in the first quarter operating profit growth after the air conditioning industry will be lower than revenue growth. Said Galaxy Securities analyst Zhu Lijun
, Home Appliances Flat or lower prices will attract buyers, but if the price increases, consumer willingness to buy is reduced. He judged, "Even if the price increases, overall the rates are not too large enterprises in order to obtain high profits, prices are most likely to push in new products."
Zhang Lin that the air conditioning industry decline was another reason, is facing pressure to clean up inventory. Development and Reform Commission recently issued official website, "energy efficiency for room air conditioners limit value and energy efficiency rating", which will be held on June 1 to implement a mandatory energy efficiency standard clear the original two new energy-efficient air conditioning upgrade to the new access threshold, and three energy-efficient air-conditioning industry-wide inventory is still more than 4 million units in June 2010 before the fall-out still has some difficulties.
However, analysts believe, because of Gree Electric Appliances (000 651), the United States electrical (000 527), Qingdao Haier (600 690) of these industry giants have reached a new energy efficiency product standards, will be the beneficiaries of this policy.
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Market Watch: Air-conditioning Business Margins Or Lower Costs - Air Conditioning, The Stock Market