News from Zhitong Finance APP, on November 10th, the Shanghai Municipal Commission of Commerce announced that following the pace of the Import Expo, Shanghai's household appliances and home appliances old-for-new carnival is also promoting consumption upgrades through exhibitions. At the same time, the announcement of new household appliances and home furnishings consumption subsidy policy subsidy categories and participating companies (the fourth batch) is from November 9, 2024, to November 11, 2024. The newly added subsidized categories include: household appliances, household lighting, and rehabilitation aids.

Specifically, the household appliances category includes: hair dryers, electric shavers, electric toothbrushes, clothing care machines, food processors (including smart cooking machines, soy milk machines, wall-breaking machines, juicers), mite removers, small kitchen treasures, and sterilizers. Household lighting categories include: ceiling lights, decorative lights, main lights, yard lights, fan lights, and desk lamps. Rehabilitation aid categories include: waist supports, neck supports, knee protectors, bone-joint arthritis supports, canes, walkers, manual wheelchairs, electric wheelchairs, transfer boards and sheets, transfer turntables, bedside handrails, shower chairs, toilet assistance frames, hearing aids, smart health monitoring products, home oxygen concentrators, vein thrombosis socks, pressure sore pads, elderly-friendly tableware, and reading glasses.

In the second half of the year, policies supporting the old-for-new trade of household appliances and other consumer goods continued to exert efforts in subsidies and government support. In August, the Ministry of Commerce and four other departments issued a notice on further improving the work of trading old appliances for new ones, specifying the subsidy varieties and standards, optimizing subsidy methods and review processes. All parties actively implemented relevant policies, refined support measures, improved guarantee measures, and effectively stimulated consumption potential. On November 8th, at a press conference held by the Office of the Standing Committee of the National People's Congress, Minister of Finance Lan Foan stated that the next step of fiscal policy will increase support for large-scale equipment updates and expand the variety and scale of trading old consumer goods for new ones.

With the synergistic coordination of central and local policies and the substantial subsidy support, coupled with the "generous rewards and benefits," the effect of the old-for-new policy for household appliances is accelerating its manifestation amid the peak consumer season of "Golden September and Silver October," the Double 11 shopping festival, and other important consumption nodes.

Since the beginning of September, Shanghai officially implemented a new round of old-for-new policy, receiving positive responses from Shanghai residents and experiencing a surge in household appliances and home improvement consumption. According to industry association statistics, during this year's National Day period, sales in Shanghai's household appliances and home furnishings industry increased by 40% year-on-year, with key enterprises like Suning, JD.com Appliances, Haier, RS Macalline, B&Q, IKEA, B&Q, among others, seeing a customer flow increase of over 30% year-on-year. As of November 8th, more than 600,000 people in the city have participated in the old-for-new household appliances activity, driving household appliance product consumption to over 3.3 billion yuan, with a significant policy stimulus effect.

Chen Lifen, a researcher at the Market Economy Research Institute of the Development Research Center of the State Council, stated that the combination of the old-for-new policy and the Double 11 promotion not only provides consumers with substantial economic benefits but also brings new growth points to the appliance and decoration markets, significantly promoting the consumer market.

Against the background of a steady recovery in the home appliance industry, the overall performance of leading home appliance companies is impressive. In the first three quarters of this year, midea group co., ltd, haier smarthome, hisense ha, guangdong xinbao electrical appliances holdings, and other listed companies in the electrical industry saw a year-on-year increase in net income. Guangdong xinbao electrical appliances holdings recently stated during institutional research that the domestic home appliance replacement policy launched this year has benefited some categories of the company's products. With macro policy support and restored consumer confidence in the future, the company remains confident in the domestic small appliances market.

Market analysts believe that the performance of major home appliance companies in the third quarter was steady. On one hand, it benefited from strong stimuli such as appliance replacement policies, leading to a gradual recovery in domestic demand. On the other hand, it benefited from maintaining high growth in export markets, creating effective growth momentum. In the fourth quarter and even next year, with larger and more forceful domestic stimulus policies in place, as well as vigorous expansion in overseas markets, the Chinese home appliance industry is expected to continue on a path of recovery and improvement.

Htsc stated that the home appliance replacement policy is taking the lead, and domestic demand for household appliances is gradually improving in the third quarter of 2024. With the ongoing consolidation of the domestic sales market through the replacement policy, domestic sales of household appliances in the fourth quarter may be able to continue the positive trend of improvement.

Related concept stocks:

midea group co., ltd (00300): In the first three quarters of this year, midea group co., ltd achieved revenue of 318.975 billion yuan, a year-on-year growth of 9.57%; net income attributable to shareholders of the listed company was 31.699 billion yuan, a year-on-year growth of 14.37%.

haier smarthome (06690): In the first three quarters of this year, haier smarthome realized revenue of 203 billion yuan, a year-on-year growth of 2.2%; net profit attributable to the parent company was 15.15 billion yuan, a year-on-year growth of 15.3%.

hisense ha (00921): In the first three quarters of this year, hisense ha achieved revenue of 70.579 billion yuan, a year-on-year growth of 8.75%; net profit attributable to the parent company was 2.793 billion yuan, a year-on-year growth of 15.13%; non-net profit attributable to the parent company was 2.289 billion yuan, a year-on-year growth of 10.99%.