Soochow: Increase efforts to expand "two new" implement measures, increase funding support to promote high-quality development of renewable resources.

Soochow released a research report stating that in the recent period, equipment updates have been vigorously promoted, increasing the funding size for equipment updates in key areas supported by ultra-long-term special national bonds. This supports the expansion of domains, while the scope of the trade-in of old products for new ones in consumer goods has been expanded, and the supported categories have been expanded. The policy of supporting the recycling and disposal of waste electrical and electronic products by 2025 will strengthen the construction of recycling and reuse capacity, promoting the high-quality development of the resource recycling industry. Environmental infrastructure as a key support area is beneficial for the demand release brought by the environmental protection and sanitation equipment updates, and it is recommended to focus on the end of household waste collection and the electronic product dismantling industry chain. Event: On January 8th, the National Development and Reform Commission and the Ministry of Finance released the "Notice on intensifying the implementation of the 2025 large-scale equipment renewal and consumer products trade-in policy." Soochow's main points are as follows: Promote equipment updates, expand the supported domains, increase the interest subsidy intensity, and emphasize advanced and efficient guidance 1) Expand the supported domains: Increase the funding size of ultra-long-term special national bonds to support equipment updates in key areas. In addition to continuing to support industrial, energy use equipment, energy and power, transportation, logistics, environmental infrastructure, education, cultural tourism, medical, and old elevator equipment updates, it will further expand to fields such as electronic information, safety production, and facility agriculture, promoting the development of equipment towards high-end, intelligent, and green directions. Key domain equipment update projects will be supported by the National Development and Reform Commission and relevant departments through investment subsidies. 2) Strengthen the implementation of equipment update loan interest subsidies: On the basis of increasing the central government interest subsidy from 1 percentage point to 1.5 percentage points, the National Development and Reform Commission will arrange additional interest subsidies from ultra-long-term special national bonds to further reduce the financing costs for equipment updates for operating entities. 3) Clarify the update diagnostic criteria and emphasize advanced and efficient guidance: Benchmarking compulsory standards such as technology, energy consumption, emissions, safety, as well as industry structure adjustment guidance directories, equipment elimination catalogs, etc., will carry out in-depth assessments of existing equipment; eliminate outdated and inefficient equipment in accordance with laws and regulations. Trade-in old products for new ones, expand the scope + increase the categories In terms of funding, ultra-long-term special national bond funds will continue to be allocated directly to localities. The distribution of funds will be moderately tilted towards regions with good results in the trade-in of consumer goods for new ones by 2024, focusing on key areas, and prioritizing the trade-in of large durable consumer goods. 1) Expand the trade-in scope: For automobiles: In addition to subsidizing national three and below emission standard gasoline passenger cars and qualified new energy passenger cars, it will also include gasoline passenger cars that meet the national four emission standard. For home appliances: In addition to the 8 categories of home appliances, 4 more categories including microwave ovens, water purifiers, dishwashers, and rice cookers have been added to the subsidy scope. The subsidy standards for automobiles and home appliances will remain consistent. 2) Expand the supported categories: Adding digital products (mobile phones, tablets, smart watches, smart bands, etc.) and electric bicycles, digital products will be subsidized at 15% of the sales price, not exceeding 500 yuan per item. The subsidy standards for electric bicycles will be determined by local areas in combination with actual circumstances. Accelerate the improvement of recycling and reuse levels, high-quality + standardization 1) Strengthen the construction of recycling and reuse capabilities: It highlights the establishment of China Recycling Group (accelerating the establishment of a national and functional resource recycling and reuse platform to facilitate the resource recycling chain) and the supply and marketing system (leveraging the advantages of grassroots network nodes, accelerating the improvement of standardized and regulated recycling and reuse networks, and promoting the integration of the household waste collection and recycling system). 2) Support the recycling and disposal of waste electrical and electronic products: Special funds for 2025 will continue to be arranged by the central government. Supporting documents for the management of special funds for the disposal of waste electrical and electronic products will be issued as soon as possible to guide enterprises in standardized dismantling. 3) Promote high-quality development of the resource recycling industry: Accelerate the implementation of "reverse invoicing" to regulate tax order. Implement special actions to promote the application of recycled materials, supporting automotive, electrical and electronic product manufacturers to increase the proportion of recycled materials. Crack down on illegal activities such as illegal recycling and dismantling of scrapped motor vehicles, waste electrical and electronic products, retired new energy equipment, and retired power batteries in accordance with laws and regulations. Investment recommendations: 1) Equipment updates: Environmental protection equipment: Environmental infrastructure as a key support area, the demand for environmental protection equipment is expected to be released. Jingjin Equipment Inc. (603279.SH) is recommended for its leading position in the filter press downstream diversification; Nanfang Zhongjin Environment (300145.SZ) is worth watching for its stainless steel centrifugal pump leadership. Electric sanitation equipment: The pilot policy of electrification + economic improvement + equipment update demand resonance. Yutong Heavy Industries (600817.SH) is recommended for benefiting from the electrification escalation, with the most flexibility; it is suggested to pay attention to FULONGMA GROUP (603686.SH), Infore Environment Technology Group (000967.SZ). Energy-saving equipment: Equipment updates emphasize advanced, energy-saving, and efficient guidance. It is recommended to focus on Shanghai Rychen Technologies (301273.SZ) for efficient energy-saving centrifugal fans and pumps, Sinoma Energy Conservation (603126.SH) for energy-saving environmental protection projects and equipment, etc. 2) Recycling resources: Recycling of household waste: Improving the household waste collection and disposal system, promoting the integration of "two networks." It is recommended to focus on the household waste collection end Eit Environmental Development Group (300815.SZ), QiaoYin City Management (002973.SZ), Infore Environment Technology Group (000967.SZ), FULONGMA GROUP (603686.SH), etc. Home appliance dismantling industry chain: It is recommended to focus on China Resources And Environment (600217.SZ)H) Hangzhou Dadi Haiyang Environmental Protection (301068.SZ) Automobile dismantling industry chain: It is recommended to pay attention to the equipment side Jiangsu Huahong Technology (002645.SZ), Miracle Automation Engineering (002009.SZ), and on the operation side Jiangsu Huahong Technology (002645.SZ), GEM Co., Ltd. (002340.SZ), Miracle Automation Engineering (002009.SZ), Ye Chiu Metal Recycling (601388.SH), Hwaxin Environmental (301265.SZ)."Je suis dsol, je ne parle pas franais." "I am sorry, I do not speak French."