Jinwu Financial News | Citibank Research reports that on January 8, the Development and Reform Commission and the Ministry of Finance jointly announced the continuation of the 2025 consumer goods “trade-in” program, which greatly alleviated investors' concerns about the sustainability of central government subsidies. Citi said in this regard that the updated subsidy policy exceeded expectations. Not only did it expand the subsidy coverage to 4 new categories of microwave ovens, water purifiers, dishwashers, and rice cookers, bringing the number of subsidized household appliances to 12 types, it also raised the maximum subsidy limit for air conditioners, and that individuals who have already received the subsidy in 2024 can continue to receive subsidies when purchasing similar appliances in 2025. According to information, the central government subsidy of about 150 billion yuan has been used up by the end of 2024, and the central government budget for the full year of 2025 is 81 billion yuan.

The bank said it maintains “buy” ratings for Haier, Midea, and Gree in the context of this policy. The target price for Gree (000651) is RMB 64.5; the target price for Haier Smart Home (06690) Hong Kong shares is HK$50.6; the target price for Haier Smart Home (600690) A shares is RMB 46.0; the target price for Midea Group (00300) Hong Kong stocks is HK$119.3, and the target price for Midea Group (000333) A shares is RMB 108.5