Driven by the home appliance trade-in policy, the National Day market sales are booming. From a nationwide perspective, Suning's national stores saw a holiday foot traffic increase of over 200% year-on-year, and trade-in orders increased by 132% year-on-year.
Finance and Economics app Smartkarma learned that China Securities Co., Ltd. released a research report stating that the home appliance trade-in policy is driving hot sales in the National Day market. Nationally, Suning's national stores saw a holiday foot traffic increase of over 200% year-on-year, and trade-in orders increased by 132% year-on-year; JD.com's National Day holiday appliance sales increased by 67% year-on-year. Core retail channels in provinces such as Hebei, Hubei, and Zhejiang doubled in growth. Singles' Day sales in 2024 is about to begin, with e-commerce platforms competing for market traffic in advance through early promotion schedules, interoperability with the payment industry and logistics services, increasing support policies for merchants, and technological innovation.
Weekly market review: Home appliance sector outperforms the Shanghai and Shenzhen indices: This week (October 7th to October 11th), the Shanghai and Shenzhen 300 Index had a weekly change of -3.25%, while the household appliances sector had a weekly change of -2.27%, outperforming the Shanghai and Shenzhen 300 Index by 0.98%. As for individual stocks, this week, Shenzhen Coship Electronics (002052.SZ), Konka Group Co., Ltd., Shanghai Highly (600619.SH) had the top three highest increases, while Changhong Meiling (000521.SZ), Ampleon (603529.SH), Hisense Ha (000921.SZ) experienced significant declines.
Raw materials, freight rates, and exchange rates: Copper prices fell month-on-month, while aluminum, plastics, and steel prices rose month-on-month. Compared to last week, the Shanghai Copper Index fell by 2.01% month-on-month, the Shanghai Aluminum Index rose by 0.46% month-on-month, the wire index rose by 5.9% month-on-month, and the plastics index rose by 3.1% month-on-month. The CCFI index saw a high-level decline: as of October 11th, the composite index was 1476.98, an 80.12% increase compared to the same period last year, and a 19.32% increase compared to the same period last quarter. The Renminbi has slightly appreciated recently: as of October 11th, the spot exchange rates for the US Dollar, Euro, and British Pound against the Renminbi were 7.07, 7.73, and 9.23 respectively, with the Renminbi slightly appreciating recently.
Investment recommendations: 1) Pay attention to the investment opportunities brought about by the intensified domestic trade-in subsidy policy. 2) Focus on recommending targets with strong international competitiveness in the white goods sector. 3) Recommend leading companies in the international clean appliances sector.
Risk warning:
1) The macroeconomic growth rate is lower than expected; 2) Significant fluctuations in raw material prices; 3) Risks in overseas markets: Uncertainties in the overseas environment have increased in recent years, with leading home appliance companies having a high proportion of exports. A decline in external demand will have a corresponding impact on performance; 4) Increased market competition: In a weak market environment, industry competition is intensifying, with some companies facing the risk of losing market share and profit drag due to low-price competition.
