Guolian: Policy catalyzes domestic sales prosperity, kitchen appliances and white goods are worth paying attention to.

Guolian released a research report stating that the subsidy intensity for replacement of old appliances in this round is comparable to that of electronic appliances going to rural areas. Starting in September, the policy implementation has entered the realization stage. Since late August, weekly retail sales growth has been on the rise, with air conditioning showing outstanding elasticity. The overseas European and American interest rate cut and restocking cycle are resonating, demand is bottoming out, and emerging markets and OBM continue to contribute incrementally. The policy benefits are upgrading the structure, and the domestic average selling price is steadily increasing. At the same time, in most regions, the replacement of old appliances regulations have expanded beyond the central 8 categories of essential appliances to include optional smart appliances like sweeping/cleaning machines, supporting elasticity in penetration space. Coupled with the Singles' Day promotion, recent sales performance has been eye-catching, and products and policy cycles are expected to resonate. Additionally, leading companies are steadily increasing their overseas market share, indicating a trend for brands to go abroad. Guolian's main points are as follows: 1. White goods: The subsidy intensity for replacing old appliances in this round rivals that of electronic appliances going to rural areas. Starting in September, the policy implementation has entered the realization phase. Since late August, weekly retail sales growth has been on the rise, with air conditioning showing outstanding elasticity. The overseas European and American interest rate cuts and restocking cycles are resonating, with demand improvement at the bottom, and emerging markets and OBM continue to contribute incrementally. The policy benefits are upgrading the structure, and the domestic average selling price is steadily increasing. Expectation for domestic elasticity is high, with leading export orders maintaining rapid growth, excellent financial performance, stable performance expectations, and subsequent operations support. Recommended companies include Midea Group Co., Ltd(000333.SZ), HAIER SMARTHOME(600690.SH), Gree Electric Appliances, Inc. of Zhuhai(000651.SZ), Hisense Home Appliances Group(000921.SZ), etc. Furthermore, the report covers other sectors such as electronic appliances, small household appliances, and late-cycle industries, providing insights and recommendations for specific companies in each sector.