Changes in Hong Kong stocks | Hisense Home Appliances (00921) rose more than 5%. Institutions expect that the national subsidy policy in the fourth quarter will drive the company's retail sales to improve significantly

The Zhitong Finance App learned that Hisense Home Appliances (00921) rose by more than 5%. As of press release, it had risen 4.99% to HK$26.3, with a turnover of HK$29.325,500.

Cathay Pacific Junan released a research report saying that according to data from Aowei Cloud Network, Hisense air conditioning/refrigerator/ washing machine retail sales were +77%/70%/53%, respectively, from October 1 to December 22, 2024, while according to industry online data, the company's cumulative domestic sales and shipments were +10% year-on-year. It is expected that the national supplement policy will lead to a significant improvement in the company's retail sales in the fourth quarter, but the channel prioritized inventory absorption, and the increase in the company's shipment volume was lower than on the retail side. At the same time, the central aviation business is weakly driven by policies, and there is still downward pressure. The domestic sales business is expected to reverse the Q3 decline, +0-5% compared to the same period; overseas demand on the export side is stable, and the company's overseas revenue in Q4 is expected to be +15-20%.

The bank continued that with the 2024Q4 national supplement support, the average retail price of the Hisense brand air wash was +9%/17%/36% year over year. The product structure was significantly optimized, and there was no significant fluctuation on the cost side. It is expected that the company's gross margin will improve significantly year-on-year, thus driving profit growth faster than the revenue side.