Event
Recently, news on portal of National Development and Reform Committee says that central government will accelerate promotion of ten types of I-leveled and II leveled energy-efficient home-appliances through financial subsidy, such as air conditioner, refrigerator, washing machine, etc. Moreover, 100mn energy-saving bulbs will also be promoted.
Our Analysis and Estimation
Subsidy allocation of energy-efficient home-appliance is a good beginning towards low carbon economy, and it is favorable to acceleration of home-appliance industry upgrade.
Efficiency improvement of air conditioner industry is in line with the market trend.
With technology proceeding, cylinder washing machine owns more advantages than the traditional pulsator washing machine in terms of water & power saving.
Refrigerator industry will gradually benefit from government’s financial subsidy as well.
Investment Suggestion
We maintain “Cautious” rating for home-appliance industry. Given factors like branding, production & enterprise management, sales season, etc, “Recommend” rating is maintained for counters of Gree Electric Appliances Inc of Zhuhai (000651), GD Media Holding (000527), Qingdao Haier (600690), Hefei Rongshida Sanyo Electric (600983) and Wuxi Little Swan (000418).