CMB International believes that the announcement of the national subsidy will encourage Other provinces to accelerate the implementation of policies, which will boost the overall demand for Smart Phone replacements in the short term.
According to the Zhito Finance APP, CMB International has released a research report stating that the National Development and Reform Commission announced on January 3 that it would expand the national subsidy plan to more product categories, including Smart Phones, tablet computers, and smart watches. This plan was announced earlier than the market expected. Although some provinces have already started to expand the subsidy plan to Smart Phones/tablet computers since August 2024, it is believed that the announcement of national subsidies will encourage other provinces to expedite the implementation of policies, which will boost the overall demand for Smart Phone replacements in the short term.
The bank believes that companies with a high market share in the Chinese brand/market will benefit, including XIAOMI-W (01810), SUNNY OPTICAL (02382), Q TECH (01478), BYD Electronics (00285), TONGDA GROUP (00698), AAC TECH (02018), Luxshare Precision Industry (002475.SZ), and FIT HON TENG (06088).
