According to Zhituo Finance APP, the mobile Industry Chain saw a broad increase in early trading. As of the time of reporting, AAC TECH (02018) rose by 3.57%, trading at 39.15 HKD; Sunny Optical (02382) rose by 3.23%, trading at 68.8 HKD; BYD Electronics (00285) rose by 3.19%, trading at 42.1 HKD; COWELL (01415) rose by 2.02%, trading at 27.8 HKD.

In news, the National Development and Reform Commission recently announced the expansion of the national subsidy program to more product categories, including Smart Phones, tablet computers, and smartwatches. CMB International stated that since August 2024, some provinces have started to extend subsidy programs to Smart Phones/tablets. It is believed that the announcement of national subsidies will encourage other provinces to accelerate the implementation of policies, which will boost overall demand for Smart Phones in the short term. The firm believes that related companies with a high market share in the China brand/market will benefit, including Xiaomi, Sunny Optical, Q TECH, BYD Electronics, TONGDA GROUP, and AAC TECH.

Citi Research Reports pointed out that the Android supply chain with higher fixed costs will be more sensitive to the introduction of this policy. The top picks are Xiaomi, BYD Electronics, AAC TECH, and Sunny Optical, all rated 'outperform the market'. The firm predicts that the sales volume of Smart Phones in China in 2024 will be 0.278 billion units, and it is currently estimated that the nationwide subsidy policy could drive the sales volume of the Chinese Smart Phone market to grow by about 15% this year, reaching 0.32 billion units, equivalent to a 3.5% increase in Global Smart Phone sales volume in 2025.