Hisense’s home appliances are favored by the country

The central government’s determination to maintain economic growth and to benefit from policy support subsidies can be held in the middle line.

Hisense Appliances (00921) is seen as a beneficiary of the Mainland’s efforts to encourage consumer spending. Earlier, the Departure and Reform Commission issued a letter of opinion on promoting the implementation of renewable energy consumption for automobiles, home appliances, consumer electronics products and promoting the development of circular economy. It is planned to introduce old-fashioned home appliances and give new green and intelligent home appliances products no more than 13% of the product price. Subsidies, a single cap of 800 yuan, once implemented, the company is mainly engaged in the production and marketing of air-conditioning and refrigerators and other home appliances, Hisense home appliances will certainly benefit, and has a stimulating effect on its two major categories of electrical products.

It is recalled that the refrigerator and air-conditioning business in the Mainland in 2018 was both dragged down by the sluggish real estate and the macroeconomic downturn. This company with three brands of Hisense, Rongsheng and Kelon had a net profit of 1.37 billion yuan last year, down 32%, earnings per share of 1.01 yuan, and dividends of 3.03 yuan per 10 shares.

However, the situation has improved in 2019. The net profit for the first quarter was 422 million yuan, an increase of 49.1%, and earnings per share were 31 points. As some provinces and cities in the Mainland have formulated plans for the implementation of home appliances to the countryside, the sales of buildings will recover during the period, and seasonal demand will pick up. The market is also expected.