＜Research＞CICC Expects Large Home Appliances to Rebound After Trade-in Subsidies Come Into Effect

　　CICC wrote in a report that based on the current round of household appliance trade-in subsidies and initiatives, it believed that retail sales of subsidised large household appliances and kitchen appliances in 2H24 will rise by 1%, 5.3% and 12.6% YoY under cautious, neutral and optimistic assumption cases.

　　CICC expected the trade-in policies to drive the resumption of growth in large home appliance retail sales in 2H24, pointing out that the retail market for large home appliances and kitchen appliances was not expected to be optimistic due to the impact of consumption downgrading. The promotional period for the subsidy in provinces and cities is projected to be from August to December.

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　　The broker also pointed out that the trade-in policies benefited a wide range of levels, with a high subsidy ceiling for one piece of appliance. Colour TVs at 1st and 2nd tiers of energy efficiency are predicted to greatly increase their market share, favouring Mini LED products. The subsidy this time has been increased to at most RMB2,000 per person per piece in each type of product, significantly higher than the previous subsidy policies, which is conducive to the sales of high-end products.

　　CICC recommended HISENSE HA (00921.HK) -0.950 (-3.950%) Short selling $4.91M; Ratio 8.647% and HAIER SMARTHOME (06690.HK) -0.750 (-2.941%) Short selling $59.33M; Ratio 39.341% for large household appliances (white goods), while TCL ELECTRONICS (01070.HK) -0.120 (-2.344%) Short selling $1.65M; Ratio 18.377% is favoured for home electronics (black goods).

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-30 12:25.)

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