Home appliance stocks collectively fell. As of the time of publication, Hisense Home Appliances (00921) fell 4.37%, to 23 Hong Kong dollars; Haier Smarthome (06690) fell 3.33%, to 24.65 Hong Kong dollars; Skyworth Group (00751) fell 1.76%, to 2.79 Hong Kong dollars.
According to the Wisdom Financial APP, home appliance stocks collectively fell. As of the time of publication, Hisense Home Appliances (00921) fell 4.37%, to 23 Hong Kong dollars; Haier Smarthome (06690) fell 3.33%, to 24.65 Hong Kong dollars; Skyworth Group (00751) fell 1.76%, to 2.79 Hong Kong dollars.
On the news front, the National Development and Reform Commission and the Ministry of Finance issued a notice on 'Several Measures to Support Large-scale Equipment Renewal and Consumer Products Trade-Ins,' which provides subsidies for home appliance trade-ins. China International Capital Corporation predicts that in the second half of 2024, the retail sales of home appliances will increase by 1.0% to 12.6% year-on-year under different scenarios. This subsidy policy is short in duration, diverse in product categories, and powerful, and is expected to boost domestic demand for home appliances, especially high-end products.
Huachuang Securities points out that if the pessimistic, moderate, and optimistic predictions correspond to subsidy funds of 10 billion, 25 billion, and 33.3 billion, respectively, the corresponding retail sales scale of home appliances that can be leveraged is estimated to be 52.4 billion, 131 billion, and 174.6 billion. If the subsidy is completely released in the second half of 2024 as per the current policy guidance, the year-on-year growth rate of the home appliance retail scale in 24H2 can reach 14%, 35%, and 47%, and the domestic sales will turn from negative growth to high-speed positive growth, which is bullish for domestic sales and undervalued leading enterprises. However, as the policy details are not yet clear and the actual demand depends on consumer willingness, the specific effects still need to be tracked in the future.