The Zhitong Finance App learned that CITIC Construction Investment released a research report saying that sales in the National Day market are booming, driven by the trade-in policy for home appliances. Looking at the national situation, the number of visitors to Suning Tesco stores nationwide increased by more than 200% year on year, trade-in orders increased by 132% year on year; sales of home appliances during the JD National Day holiday increased 67% year over year. Core retail channels in Hebei, Hubei, Zhejiang and other provinces have doubled their growth. Double Eleven is about to begin in 2024. Platform e-commerce competes for market traffic ahead of time by advancing the big promotion schedule, connecting with the payment industry and logistics services, increasing merchant support policies, and scientific and technological innovation.
This week's market review: The home appliance sector outperformed the Shanghai and Shenzhen Index: This week (October 7 to October 11), the Shanghai and Shenzhen 300 weekly changes were -3.25%, and the household appliances sector changed by -2.27% weekly, outperforming the Shanghai and Shenzhen 300 Index by 0.98 pct. In terms of individual stocks, *ST Tongzhou (002052.SZ), Shenzhen Kangjia B, and Haili (600619.SH) registered the top three gains this week, with Changhong Meiling (000521.SZ), Emma Technology (603529.SH), and Hisense Home Appliances (000921.SZ) falling significantly.
Raw materials, freight rates and exchange rates: Copper prices fell month-on-month, while aluminum, plastic, and steel prices rose month-on-month. Compared with last week, the Shanghai copper index fell 2.01% month-on-month, the Shanghai aluminum index rose 0.46% month-on-month, the wire index rose 5.9% month-on-month, and the plastics index rose 3.1% month-on-month. The CCFI index declined at a high level: As of October 11, the composite index was 1476.98, up 80.12% from the same period last year, and 19.32% higher than the same period last quarter. The RMB has appreciated slightly recently: As of October 11, the spot exchange rates of the US dollar, the euro, and the British pound against RMB were 7.07, 7.73, and 9.23, respectively. The RMB recently appreciated slightly.
Investment advice: 1) Pay attention to the investment opportunities brought about by the current increase in the domestic sales trade-in subsidy policy. 2) Focus on recommending targets with strong international competitiveness when going overseas. 3) It is recommended to clean the electrical outlet faucet.
Risk warning:
1) Macroeconomic growth falls short of expectations; 2) Raw material prices have fluctuated greatly; 3) Overseas market risks: Uncertainty in the overseas environment has intensified in recent years, and the export sales of leading home appliances account for a relatively high share. If external demand falls, performance will be impacted accordingly; 4) Increased market competition: in a weak market environment, industry competition is more intense, and some companies risk losing share and low price competition dragging down profits.