Hong Kong stock concept tracking | Guangdong province aims to exchange 400,000 old electric bicycles for new ones, benefiting leading companies (with concept stocks)

On September 19th, the Guangdong Electric Vehicle Association held a training session to interpret the "old for new" policy for electric bicycles in Guangdong Province. The session introduced subsidy standards, implementation processes, etc., to help electric bicycle industry manufacturers and sellers understand the "old for new" policy and its related implementation requirements, master the operation process of the "old for new" system, actively respond to national policies, and boost consumption to promote industry development. The relevant person in charge of the Guangdong Electric Vehicle Association stated that the implementation period of the "old for new" policy for electric bicycles in Guangdong Province is from September 1st to December 31st, 2024. Consumers who participate in the program and scrap their registered and licensed old electric bicycles in Guangdong Province, and purchase a new qualified vehicle that meets the relevant requirements with a price of 1500 yuan or more, will receive a one-time subsidy of 500 yuan. Previously, the Guangdong Provincial People's Government Office issued the "Implementation Plan for Making Good Use of Long-term Special National Bond Funds to Support Consumption Goods for the Old for New Program," which set the target for the province to exchange 400,000 old electric bicycles for new ones. On August 30th, the Ministry of Commerce and five other departments released the "Implementation Plan to Promote the Replacement of Old Electric Bicycles with New Ones," organizing qualified electric bicycle production companies to participate in the program. This is also the first time that the country has issued a policy for the replacement of old electric bicycles with new ones. Encouraging the exchange of lithium electric vehicles for lead-acid vehicles, "for consumers who replace old lithium-ion battery electric bicycles with lead-acid battery bicycles, subsidies will be appropriately increased," firmly supporting lead-acid battery vehicles. In a report previously released by Open Source Securities, it was predicted that in 2024, 62.1% of the demand for electric two-wheeled vehicles comes from replacement demand. Leading electric bicycle companies: YADEA (01585): Yadea's sales in August were approximately 1.8 million units, a slight decrease from the 2 million units sold last year, close to a 10% decline. Despite this, the proportion of Yadea's Crown series remains at over 45%, with continued control of the proportion of models below 2,500 yuan, providing some room for slight price increases. With the implementation of the new national standard, costs will increase, and smaller brands will gradually be eliminated, leading to an expected increase in Yadea's product unit price. Currently, Yadea's high-end series accounts for approximately 40% of sales, with the goal of increasing to 60% to 65%. Compared to competitors, Yadea's product unit price remains relatively low, with significant investment in core components affecting profitability to some extent. Lead acid battery-related companies: Tianneng Battery Group Co., Ltd. (00819): A global leader in the lead-acid battery industry. The company stated that in the domestic market for lead-acid power batteries for electric light vehicles, the company's market share remains at the top, exceeding 45% market share.