Hong Kong Stock Concept Tracking | Mobile Digital Country Supplement Online China's smart phone market is expected to continue its growth trend (with concept stocks)

Recently, the Ministry of Commerce, together with relevant departments, issued the "Implementation Plan for Subsidies for Purchasing New Mobile Phones, Tablets, and Smart Watches". Individual consumers purchasing three types of digital products: mobile phones, tablets, and smart watches, can enjoy subsidies for purchasing new products. According to the subsidy plan, each person can receive a subsidy for one item in each category, with a subsidy rate of 15% of the final selling price after deducting all discounts from the production, distribution, and mobile operators, with a maximum subsidy of 500 yuan per item. Journalist surveys have found that the new purchase subsidy policy has been implemented on some online platforms and offline stores, effectively stimulating the consumption market for smartphones. Starting yesterday, various regions formally implemented the subsidy policy for purchasing new digital products such as mobile phones, tablets, and smart watches. It is reported that e-commerce platforms such as Tmall and JD.com have launched national subsidies. On January 20, the subsidy for purchasing new digital products such as mobile phones officially landed on JD.com. National subsidy activities have been fully launched on JD.com in Beijing, Hubei, Jiangsu, Zhejiang, and Shaanxi, with activities in other provinces and cities gradually going online. JD.com data shows that as of 12 o'clock on January 20, mobile phone sales in provinces and cities with national subsidies going online increased by 200% compared to the previous period, tablet sales increased by 300%, and sales of smart children's watches increased by 100%. The data also shows that when consumers purchase digital products with national subsidies on JD.com, they prefer smartphone products in the price range of 3000-4000 yuan, tablets in the price range of 3000 yuan, smart watches in the price range of 500-1000 yuan, and smart bracelets in the price range of 200-300 yuan. Sinolink believes that the 15% subsidy on top of the discounted price of the goods (not exceeding 500 yuan) is a significant subsidy, stimulating the consumption of electronic products and market recovery by 2025. The latest quarterly tracking report on smartphones by IDC shows that, benefiting from the gradual release of pent-up replacement demand in the past few years, the total shipments of smartphones in China in 2024 are expected to be approximately 286 million units, a year-on-year increase of 5.6%, marking a rebound after hitting the bottom for two years. It is estimated that under the stimulus of the national government's consumption subsidy policy in 2025, the Chinese smartphone market is expected to continue its growth trend. Morgan Stanley stated that the subsidy reaffirmation will be a short-term positive catalyst for smartphone OEMs and supply chains, and expects Xiaomi, SUNNY OPTICAL, AAC TECH, BYD ELECTRONIC, and Q TECH to be the main beneficiaries. Mobile industry chain related companies: XIAOMI-W (01810), SUNNY OPTICAL (02382), AAC TECH (02018), BYD ELECTRONIC (00285), Q TECH (01478) Core companies of sales platforms: JD-SW (09618): CCB International published a report stating that the mainland's home appliance trade-in subsidies will be expanded to small home appliances, air conditioners, and mobile phones, enhancing confidence in JD.com. Considering JD.com's leading position in the electronic products and home appliances sectors, the bank expects its revenue for the fourth quarter of last year to exceed expectations, with a year-on-year increase of 9%, higher than the market's expected 6% increase. In addition, the bank expects JD.com's fourth-quarter non-GAAP net profit to exceed market expectations. The bank mentioned that JD.com's current price is equivalent to a predicted P/E ratio of 8.1 times, undervalued, plus shareholder returns, making JD.com the preferred stock in the e-commerce platform sector.