Home appliance stocks rose in early trading, with Hisense Ha (00921) up 4.35%, TCL Electronics (01070) up 3.01%, Haier Smarthome (06690) up 2.63%, Skyworth Group (00751) up 1.82%, and JS Global Life (01691) following suit.
Recently, the National Development and Reform Commission and the Ministry of Finance issued a notice on "Several Measures to Support Large-scale Equipment Upgrade and Replacement of Consumer Goods with Old Ones", which involves "key support for scrapping and renewing of automobiles and replacement of passenger vehicles by individual consumers in various regions, replacement of old home appliances and electric bicycles, purchase of materials and goods used for renovation of old houses, kitchens and bathrooms, home adaptation for the elderly, and promotion of smart home consumption."
According to a research report by Zhong Jinfa, if the current round of old-for-new policy for home appliances is used as a basis of calculation, the retail sales of large home appliances and kitchen appliances subsidized in the second half of this year would increase by 1%, 5.3%, and 12.6% year-on-year under cautious, neutral, and optimistic assumptions, respectively. Zhong Jinfa believes that old-for-new policy is expected to drive the recovery of the retail sales of large home appliances in the second half of 2024. Given the impact of consumption downgrading, the prospects for the retail market of large home appliances and kitchen appliances are not optimistic, and the subsidy promotion period in various provinces and cities is expected to be from August to December.
