Event:
On February 18, Premier Wen Jiabao presided executive meeting of the State Council and discussed and passed 2009-2011 regulation & promotion plan of electronic information industry in principle; during the conference, it definitely put forward to dedicate more especially in integrated circuit upgrade, new-type display and transformation of Color TV industry.
Our Analysis and Estimation:
To enhance industrial competitiveness based on upper course of Color TV industry. In the regulation & promotion plan of electronic information industry, flat panel display has become the core of three key breakthroughs.
Color TV industrial transformation is definitely put forward in the regulation & promotion plan of IT industry.
Regulation & promotion plan of electronic information industry also proposes to enhance support from export oriented enterprises, and increases export rebate portion of 25 key electronic products to 17%.
Investment Suggestion:
We believe that regulation & promotion plan of electronic information industry is a primary support to Color TV industry. With forceful support on upstream flat panel display sector, Color TV manufacturers will gradually benefit. Additionally, we continue to hold optimistic view on Hisense Electric (600060) and Konka Group (000016) with upstream industrial chains; “cautious” rating is maintained for home appliance industry.