Zhongjin: New round of "trade-in for new" policy implemented, optimistic about the recovery of home and 3C consumer goods.

CICC released a research report stating that the new round of trade-in policies in mainland China has been implemented. It is believed that the expansion of policy intensity and subsidy scope is expected to further stimulate the consumption demand for related categories. At the same time, the improvement of subsidy mechanisms will reduce the threshold for business participation, and the popularity of policies is expected to further increase, driving the recovery of demand for home furnishings and consumer electronics packaging. The report mentioned that the pull coefficient of last year's home furnishing subsidy policy was between 1.17 and 1.75. Leading home furnishing enterprises saw a significant rebound in orders and sales in October and November. It is expected that the expansion of subsidy intensity may push the pull coefficient higher. Furthermore, leading home furnishing enterprises actively participate in the trade-in program and continuously promote category expansion and channel integration, so this year's performance is expected to quickly resume its growth trend. The bank expressed optimism about the recovery space for consumer electronics packaging demand. Recently, various regions such as Jiangsu, Guizhou, and Hangzhou have successively launched trade-in subsidy activities for consumer electronics, which have a good stimulating effect on the demand for consumer electronics. It is believed that ShenZhen YUTO Packaging Technology (002831.SZ) as a global leader in consumer electronics packaging may directly benefit from the industry's recovery. For Hong Kong stocks, MAN WAH HLDGS (01999) is recommended with a "outperform" rating and a target price of 7 Hong Kong dollars.