Events
On April 13, Premier Li Keqiang chaired an executive meeting of the State Council, which deployed policies and measures to promote consumption, decided to further strengthen policy support such as export tax rebate, and determined measures to increase financial support for the real economy.
East Asia Qianhai view
The deployment of the meeting has played a clear directional role, and the local household appliance consumption incentive policy is expected to respond positively and be introduced. Since 2018, various ministries and governments have issued documents to encourage conditional areas to promote rural consumption, promote the purchase of green smart appliances or introduce subsidy policies for replacing old appliances with new ones, so as to stimulate domestic demand and revitalize economic development. Since 2019, household appliance subsidy policies have been implemented in Beijing, Guangdong, Shandong, Guangxi, Hebei, Shijiazhuang and other places. Take Beijing as an example. Since 2015, Beijing has implemented two rounds of subsidy policies for energy conservation and emission reduction. On April 12, Beijing again issued the notice on the implementation of policies to promote green and energy-saving consumption. This time, it was carried out in the form of direct issuance of consumption vouchers. Compared with the previous round, this subsidy covers a wider range of categories and lower threshold, which has further demonstration significance. At present, most of the policies introduced are led by places with financial conditions. Under the needs of stabilizing the basic economic situation and ensuring the improvement of people's livelihood, the possibility of nationwide subsidies needs to be paid attention to.
Export tax rebates will help household appliances go to sea. The meeting pointed out that we should give better play to the policy effectiveness of export tax rebate, which is inclusive, fair and in line with international rules: first, after implementing the policy of consistent tax rate for export products, processing trade enterprises should refund the tax that should not be refunded, and it is allowed to transfer in the input tax to offset the value-added tax. Treat the export credit insurance compensation as foreign exchange collection and apply for tax refund; Second, speed up the progress of tax rebate and reduce the processing time of tax rebate to 6 working days; Third, improve the efficiency of customs clearance for the return of export goods, formulate policies to facilitate the return and exchange of cross-border e-commerce, and severely punish acts such as defrauding tax rebates. Further strengthening of the export tax rebate policy will help fill the company's cash flow, alleviate the difficulties of foreign trade enterprises and promote the steady development of import and export.
Since March, the market as a whole has rebounded weakly, with obvious differentiation in various industries. The household appliance industry, which is greatly affected by upstream raw materials, is in the stage of stabilizing after a sharp decline. Although the real estate stocks have rebounded since late March under the expectation of steady growth, the sustainability and effectiveness of the policy need to be further observed under the current sluggish macro background. In addition, against the background of global inflation, the current sharp rise in raw material prices combined with the sluggish downstream demand makes some home appliance manufacturers face profit squeeze. In the future, with the continuous overweight of fiscal and monetary policies, it is expected to further accelerate out of the bottom of sentiment and the bottom of the market.
Investment advice
It is suggested to pay attention to the traditional leaders who benefit from the recovery of fundamentals and the emerging categories of household appliances with high landscape. Related objects: Midea Group Co.Ltd(000333) , Haier Smart Home Co.Ltd(600690) , Hangzhou Robam Appliances Co.Ltd(002508) , Joyoung Co.Ltd(002242) , Zhejiang Supor Co.Ltd(002032) , Ecovacs Robotics Co.Ltd(603486) , etc.
Risk tips
The implementation of household appliance consumption subsidy policy is slow, the epidemic situation intensifies, and the willingness to consume is reduced.
