Matters:
On April 12, 2022, the Beijing Municipal Bureau of Commerce issued the notice on the implementation of policies to promote green energy-saving consumption. Beijing will issue green energy-saving consumption vouchers to consumers in Beijing from April to September 2022 to encourage consumers to buy and use green energy-saving commodities, including dishwashers, televisions, air conditioners, refrigerators, washing machines, water heaters, range hoods, projectors and other 20 categories of commodities. Green energy-saving coupons will be issued on the online platforms of Jingdong, Suning, zhenhappy and other enterprises, and can be used for full reduction. The total amount is expected to exceed 300 million yuan, with a discount ratio of 10%.
Guoxin’s view on home appliances: 1) the subsidy threshold is greatly reduced, and it is more convenient to receive and use, which will effectively improve the utilization rate of subsidies and is expected to vigorously promote the release of demand for home appliances. 2) Previously, various central departments have repeatedly advocated encouraging local governments to carry out policies to promote the consumption of green household appliances. Since 2015, Beijing has implemented two rounds of subsidy policies for energy conservation and emission reduction, with remarkable results and good demonstration effects, which is expected to promote the introduction of corresponding policies across the country. 3) Investment suggestion: Beijing will implement the policy of promoting green household appliance consumption again and significantly reduce the threshold of subsidies, which is expected to stimulate the sales of corresponding products and benefit relevant household appliance enterprises. Considering the categories involved in this subsidy, we recommend white water faucet Midea Group Co.Ltd(000333) , Haier Smart Home Co.Ltd(600690) , intelligent projection faucet Chengdu Xgimi Technology Co.Ltd(688696) , kitchen faucet Hangzhou Robam Appliances Co.Ltd(002508) . 4) Risk tips: the effect of consumer vouchers on stimulating consumption is less than expected, the implementation progress of household appliance consumption policies in other regions is less than expected, and the epidemic affects consumption willingness.
Comments:
The relaxation of the terms of Beijing green energy-saving consumption vouchers is expected to promote the release of consumer demand for household appliances
The subsidy crowd was relaxed: the Beijing Beijing energy saving and emission reduction policy implemented in 2019 was applied to the non registered urban residents in Beijing, including the registered residents in Beijing, the active servicemen in Beijing, the active armed police, the registered residence cards of Beijing, and the registered residence cards of Beijing. The subsidy targets consumers in Beijing, that is, the final distribution address of the purchased goods can be within the scope of Beijing.
Expansion of subsidized commodities: compared with the previous products, the subsidized commodities include new projectors, dishwashers, water purifiers and other products. The energy efficiency requirements are level II energy efficiency (water efficiency) and above.
Relaxation of subsidy standard: the policy subsidy standard in Beijing in 2019 ranges from 8% to 20%, and the maximum subsidy limit is 800 yuan. Each consumer can only have one (one) of each kind of goods to enjoy the subsidy policy. The total amount of consumption coupons that can be used for more than 1 month is more than 1000 yuan, and the total amount of consumption coupons that can be used for more than 1 month is less than 200 yuan. The total amount of consumption coupons that can be used for more than 1 month is more than 1000 yuan, and the total amount of consumption coupons that can be used for more than 1 month is less than 200 yuan.
The method of receiving and using is more convenient: the consumer only needs to complete the authentication of the four elements of the bank card to receive the subsidy voucher on the online platform. After receiving it, they can consume and use it. It is convenient to receive and use.
Under the relatively loose subsidy terms, it is expected that consumers’ demand will be effectively stimulated to promote the sales of household appliances. Since 2015, Beijing has implemented two rounds of energy conservation and emission reduction policies to promote consumption. Over the past six years, the subsidy policy has driven participating enterprises to sell more than 11 million energy-saving products, realizing sales of nearly 42 billion yuan, directly driving the average annual growth of household appliance consumption in the city by more than 12%. The terms of this round of subsidies are more relaxed, which is expected to play a more significant role in promoting consumption, and the results are worth looking forward to.
The demonstration effect of Beijing’s subsidy policy is significant, which is expected to promote the introduction of similar subsidy policies in other regions
Since 2018, various central departments have repeatedly expressed their support for local governments to introduce green household appliance consumption subsidy policies to promote the upgrading and replacement of household appliances. Beijing, Guangdong, Shandong and other regions have also launched similar stimulus policies. In the 2022 government work report, “encouraging local governments to carry out green smart appliances to the countryside and trade in the old for the new” has also become an important content. The introduction of Beijing’s consumption promotion policy is expected to form a demonstration effect, drive other parts of the country to implement corresponding subsidy policies, actively respond to the call of the central government, stimulate consumption and stimulate internal circulation.
Investment suggestions:
Beijing will implement the policy of promoting green household appliance consumption again and significantly reduce the threshold of subsidies, which is expected to stimulate the sales of corresponding products and benefit relevant household appliance enterprises. Considering the categories involved in this subsidy, we recommend white water faucet Midea Group Co.Ltd(000333) , Haier Smart Home Co.Ltd(600690) , intelligent projection faucet Chengdu Xgimi Technology Co.Ltd(688696) , kitchen faucet Hangzhou Robam Appliances Co.Ltd(002508) .
Risk tips:
The effect of consumer vouchers on stimulating consumption is less than expected, the implementation progress of household appliance consumption policies in other regions is less than expected, and the epidemic affects consumption willingness.
