Market Insight | Home Appliance Stocks Continue to Rise, Chinese Household Appliance Exports Achieve Positive Growth for 18 Consecutive Months, Industry Domestic Sales Expectations May See a Reversal
Home appliance stocks continue to rise. As of the time of publication, TCL Electronics rose by 5.41% to HKD 5.26; Hisense Home Appliances rose by 0.88% to HKD 22.8; Haier Smart Home rose by 3.37% to HKD 26.1. On the news front, the latest data released by the General Administration of Customs on September 18 showed that in the first 8 months of this year, key export products from China, including household appliances, continued to grow at a double-digit rate, with a year-on-year increase of 14.7% (in US dollars). As of August this year, China's home appliance exports have seen year-on-year positive growth for 18 consecutive months. Shenwan Hongyuan believes that against the backdrop of the Fed's interest rate cuts, interest rate-sensitive sectors such as real estate and manufacturing may benefit, which could also radiate to China's furniture, home appliances, decoration, processing of metal products, industrial machinery, and other commodity exports. TF Securities released a research report stating that home appliance revenue is expected to maintain steady growth in the first half of 2024, with continuous improvement in profitability and the resilience of leading companies' performance. With the recent implementation of the policy to replace old appliances with new ones, the subsidy intensity is comparable to the "home appliances going to the countryside" policy. The domestic market is currently experiencing a new cycle of updates, and the elasticity of policy implementation can be expected. Domestic sales expectations may see a turnaround, coupled with export prosperity, low valuation, and high dividend yields, maintaining an industry rating of "outperforming the broader market"
According to the VESYNC financial APP, home appliance stocks continue to rise. As of the time of publication, TCL Electronics (01070) rose by 5.41% to HKD 5.26; Hisense Home Appliances (00921) rose by 0.88% to HKD 22.8; Haier Smart Home (06690) rose by 3.37% to HKD 26.1.
On the news front, the latest data released by the General Administration of Customs on September 18 showed that in the first 8 months of this year, among China's key export products, household appliances continued to grow at a double-digit rate, with a year-on-year increase of 14.7% (in USD terms). As of August this year, China's household appliance exports have seen year-on-year positive growth for 18 consecutive months. Shenwan Hongyuan believes that against the backdrop of the Fed's interest rate cuts, interest rate-sensitive sectors such as real estate and manufacturing may benefit, which could also radiate to China's furniture, home appliances, decoration, as well as processed metal products, industrial machinery, and other goods exports.
TF Securities released a research report stating that in the first half of 2024, the income of home appliances will continue to grow steadily, profitability will continue to improve, and the leading companies' performance resilience will be highlighted. Recently, the central government's policy of replacing old appliances with new ones has been implemented, with subsidy intensity comparable to the previous "home appliances going to the countryside" policy. The domestic sales are currently in a cycle of renewal, and the policy implementation elasticity can be expected. Domestic sales expectations may see a reversal, coupled with export prosperity, low valuation, and high dividend yields, maintaining an industry rating of "stronger than the overall market"