philips, sharp, 3m help investors breathe easy in smoggy china - chinese appliance manufacturers

by:Yovog     2019-07-12
philips, sharp, 3m help investors breathe easy in smoggy china  -  chinese appliance manufacturers
BEIJING (TheStreet)--
The Chinese people used to be the source of economic growth, dismissive of polluted air as a necessary price for future prosperity.
Today, China has achieved relative prosperity, and ordinary people spend a lot of money on household air purifiers, purifiers to replace filters and masks.
The combination of urban air pollution and consumer wealth is a boon for companies that meet China's growing demand for lung protection.
The companies are backed by stock investors who understand the anxiety of ordinary people and do not expect China's long-term smog to disappear soon. The Beijing-
According to the China market monitoring company of the consulting company, the sales of air purifiers will reach $1.
China grew 4 billion this year and 30% in 2015.
The potential for growth is only about 0.
Today, 1% of households in China have air purifiers, while 71% in South Korea have air purifiers.
The first step in investing in these smog
Chinese consumers tend to prefer foreign brands.
Also, if their health is threatened, the middle class and the rich don't mind paying extra for a trustworthy product.
According to the China Market Monitor, foreign companies have monopolized 54% of China's air purifier market.
The fastest growing market
The part of the growth is at the high end of the price range, which means more than $800. Well-to-
Do consumers sometimes have a purifier in every room at home?
Koninklijke Philips in the Netherlands has produced the most popular household air purifiers in the country (PHG -Get Report)
Panasonic Corporation of Japan (PCRFY)and Sharp (SHCAY)
According to AVC, China's home appliance industry consultant.
Chinese brands Yadu and Daikin ranked fourth and fifth.
Chinese purifier consumers also like appliances made in Electrolux, Sweden. ELUXY)
Samsung, South Korea (SSNLF)
And 3 m in the United States (MMM -Get Report).
These companies also make money by selling purifiers to replace filters, and in some machines, filters have to be replaced every once in a while, depending on local contamination conditions.
For example, in smog-filled Beijing, a basic machine filter of about $50 should be replaced every three to six months.
Filter spending in cities like Shijiazhuang is clearly higher, where pollution levels may be three times worse than in Beijing.
In addition to using indoor demand for breathable air, 3 m also makes money in China by selling protective masks.
Chinese consumers still favor cheap surgical procedures and masks in smog weather.
But many have learned that more is needed to protect their lungs from the most dangerous particles in the city's air.
3 m industrial masks are usually worn by pedestrians in China, including children walking to school.
At the time of publication, the author did not hold a position in any of the above shares.
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> This article is an independent contributor's comment, unlike the regular news stories on the streets.
The street rating team rated 3 m CO as a buy with a rating score.
The street rating team has this statement about their proposal: "We have 3 m companies (MMM)a BUY.
This is based on the convergence of positive investment measures, which will help this stock exceed most of the stocks we have assessed.
The company's advantages are reflected in many areas, such as income growth. most of the measures show that the financial situation is basically stable, the debt level is reasonable, the return on equity is significant, the profit margin is expanding, and the stock price is stable.
We think these advantages outweigh the fact that the company's operating cash flow is weak.
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