Jinwu Financial News | BOCOM INTL issued a Research Report stating that the trade-in policy will continue and expand. For household appliances, besides the traditional eight items, the Microwave, water purifiers, dishwashers, Rice Cooker and other four categories will be included in the subsidy range. At the same time, the limit on the number of subsidized Air Conditioner products has been expanded from 1 to 3 units. Subsidy records for 2024 will not affect eligibility for subsidies in 2025.
The bank indicated that the trade-in policy supports the rapid release of demand for appliance replacements. The trade-in policy has a significant driving effect on Consumer purchases of household appliances. According to Statistics from the Ministry of Commerce, the trade-in policy for household appliances in 2024 has led over 36 million Consumers to purchase 56 million units of the eight major categories of household appliances, with sales exceeding 240 billion yuan. The demand for upgrades has triggered a rapid release of consumption potential.
The bank remains Bullish on leading household appliance companies. The continuation of the trade-in policy will continue to support replacement demand during the Spring Festival period. At the same time, the growth rate in the Air Conditioner category is worth paying attention to. There is continued Bullish sentiment towards leading household appliance companies that have diverse product layouts, sound distribution channels, and strong competitiveness in mature Air Conditioner markets.
