Event: on April 12, according to the Beijing Municipal Bureau of Commerce, Beijing issued a policy to promote green energy-saving consumption. From April to September this year, more than 300 million yuan of Beijing green energy-saving consumption vouchers will be issued to consumers in Beijing to further meet diversified consumption needs, release the potential of green energy-saving consumption, and accelerate the formation of a simple, moderate, green, low-carbon, civilized and healthy lifestyle and consumption mode.
The issuance of consumption coupons, in conjunction with jd.com, Suning, Gome and other channels, subsidized 20 varieties such as air purifiers, dishwashers, televisions, air conditioners, refrigerators, washing machines, water heaters, microwave ovens, range hoods, gas stoves, electric cookers, printers, projectors, electric fans, toilets, water purifiers and showers. Consumers can receive a consumption voucher every month on the same platform and use it according to the limited amount, which is equivalent to a discount of 10%. The subsidy amount shall be paid in advance by the participating enterprises and then settled with the Bureau of Commerce.
Compared with the “three policies” of household appliances in 200912, the policy at that time mainly subsidized and promoted large household appliances and common kitchen small household appliances, involving a small range of varieties. The applicable varieties of this subsidy also include emerging household appliances such as projectors, displays and air purifiers, and the subsequent number will increase in succession. Secondly, in terms of discount intensity, in addition to receiving green consumption coupons, consumers can also use them together with enterprise coupons and old for new activity discounts, and coupons can also be received every month from April to September, with great discount intensity. Finally, in terms of distribution channels, the subsidies from 2007 to 2013 are mainly through offline subsidies. This time, the subsidies in Beijing are more diversified. Consumers can receive subsidies through Wuxi Online Offline Communication Information Technology Co.Ltd(300959) and mobile phones, which is more convenient.
We believe that: 1) last year, the national development and Reform Commission and the Ministry of Commerce encouraged qualified places to stimulate the renewal of household appliances and green household appliances to the countryside. This implementation in Beijing may be followed by more cities in the future; 2) Since last year, the price rise has been a major factor affecting demand, and consumer vouchers are conducive to offsetting the adverse factors of the price rise to a certain extent; 3) Unlike 10 years ago, Beijing has included many new categories, such as projectors, toilets, water purifiers, etc., which is conducive to the popularization of new categories.
Investment suggestion: we maintain that the probability of household appliance valuation has reached the bottom, and we need to wait for the judgment of upward profit cycle, but we should pay attention to the changes brought by the accumulation of favorable factors at the bottom of valuation. It is recommended to still follow the target high-quality + undervalued value, such as [ Haier Smart Home Co.Ltd(600690) ] (China’s refrigerator / freezer business accounted for 19% of operating profit in 21 years, which may be upgraded or new purchase demand in the short term due to the continuous epidemic), [ Hangzhou Robam Appliances Co.Ltd(002508) ] (real estate + the second curve), [ Midea Group Co.Ltd(000333) ] (home appliance leader + 2B business opens a new curve) [ Zhejiang Supor Co.Ltd(002032) ] (fundamental recovery + overseas profit improvement, and there may be new demand if the short-term epidemic continues) and other high-quality objects with clear valuation anchors.
[ Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) ] (real estate + fast growth), [ Marssenger Kitchenware Co.Ltd(300894) ] (real estate + fast growth), as well as small household appliances, which were most obviously driven by the epidemic in the last round, and [ Bear Electric Appliance Co.Ltd(002959) ] (Fundamentals recovered, short-term epidemic continued, there may be new demand) which has been fully corrected in this round can also be concerned. In terms of cleaning appliances, we are still optimistic about the penetration improvement of floor sweeping Siasun Robot&Automation Co.Ltd(300024) and floor washer, and we suggest paying attention to [ Ecovacs Robotics Co.Ltd(603486) ], [ Beijing Roborock Technology Co.Ltd(688169) ].
Risk tip: the issuance of consumption vouchers is less than expected, the epidemic situation is exacerbated, and the real estate market, exchange rate, raw material price fluctuation risk, etc.
