A few days ago, the State Council issued the "Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in". On April 11, the relevant persons in charge of the National Development and Reform Commission, the Ministry of Industry and Information Technology and other departments introduced the relevant situation of the action plan.
Source: Photo.com
Multiple departments have worked together to promote the implementation of the new policy of "trade-in for the new".
The "Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in" (hereinafter referred to as the "Action Plan") proposes to implement the "four major actions" of equipment renewal, consumer goods trade-in, recycling and recycling, and standard improvement. Zhao Chenxin, deputy director of the National Development and Reform Commission, said at the regular policy briefing of the State Council on April 11 that the "Action Plan" can not only promote consumption, stimulate investment, and effectively enhance economic vitality, but also increase advanced production capacity, promote energy conservation and carbon reduction, and reduce potential safety hazards, which is not only beneficial to the present but also beneficial to the long-term.
At present, the net asset value of the whole society's equipment stock is about 39.3 trillion yuan, of which the stock assets of industrial equipment are about 28 trillion yuan. According to Zhao Chenxin, the number of industrial robots in mainland China accounts for 1/3 of the world, the installed capacity of new energy equipment such as wind power and photovoltaic has ranked first in the world for many years, the number of home appliances exceeds 3 billion, and the number of cars exceeds 300 million. The mainland's annual demand for equipment investment and renewal in key areas such as industry and agriculture is more than 5 trillion yuan, and the demand for replacing automobiles and household appliances is also at the level of more than one trillion yuan.
In 2023, the scale of equipment investment in the national industrial field will reach 4.4 trillion yuan, a year-on-year increase of 8.7%, accounting for more than 70% of the equipment investment in the whole society. Shan Zhongde, Vice Minister of the Ministry of Industry and Information Technology, said that the Ministry of Industry and Information Technology will focus on key industries such as petrochemical industry, iron and steel, nonferrous metals, building materials, machinery, automobiles, light industry, textiles, electronics, etc., and carry out the "four major actions" of advanced equipment renewal, digital transformation, green equipment promotion, and safety level improvement, and comprehensively promote equipment renewal and technological transformation.
As for the trade-in of consumer goods, Xu Xingfeng, director of the Department of Market Operation and Consumption Promotion of the Ministry of Commerce, said that the "Action Plan" has clarified the large categories, namely automobiles, home appliances and home decoration, kitchen and bathroom. "In terms of automobiles, we encourage the replacement of old cars with high energy consumption, high emissions, long service life and potential safety hazards for new energy vehicles or energy-saving vehicles. In terms of household appliances, some household appliances have high water consumption and high energy consumption, and at the same time, with a longer service life, there are also problems such as aging accessories and potential safety hazards, so we advocate replacing these with products with low energy consumption and low water consumption. Home decoration kitchen and bathroom, encourage more use of green and low-carbon products. ”
Regarding the disposal of waste equipment and consumer goods, Zhao Chenxin said that waste materials are "full of treasures", and effective recycling is equivalent to opening a "second mine". The National Development and Reform Commission will accelerate the development of the "replacement + recycling" logistics system and new model, and strive to promote the new standardized and standardized recycling sites in large and medium-sized cities across the country 2,000 throughout the year; continue to optimize the registration management of second-hand car transactions, promote the standardization of second-hand electronic product transactions; encourage the implementation of remanufacturing of qualified waste production equipment, and build a number of scrap steel, waste non-ferrous metals and other renewable resources intensive processing industrial clusters, this year's resource recycling industry output value is expected to exceed 4 trillion yuan.
Liu Hongsheng, director of the Standards and Technology Management Department of the State Administration for Market Regulation, said that recently, the State Administration for Market Regulation and other seven departments jointly issued the "Action Plan for Upgrading Traction Equipment Renewal and Consumer Goods Trade-in with Standards", requiring to speed up the formulation and revision of standards in the fields of energy conservation and carbon reduction, environmental protection, safety, recycling, etc., and promote the completion of the formulation and revision of 294 key national standards this year and next year, and promote policies and standards to be more coordinated and matched, and strongly support equipment renewal and consumer goods trade-in.
"Large-scale equipment renewal is a complex system engineering, not only to fully mobilize the initiative, enthusiasm and creativity of enterprises, but also to carry out the necessary incentives and guidance, to promote the upgrading of equipment to form a scale effect. Fu Jinling, director of the Department of Economic Construction of the Ministry of Finance, said that the Ministry of Finance will strengthen the overall planning of capital policies, improve tax support policies, improve government green procurement policies, and strengthen the linkage of fiscal and financial policies.
Listed companies seize new opportunities, and the central bank releases 500 billion "big moves"
After the "Action Plan" was proposed, many listed companies were full of expectations for it.
Swan shares (603029. SH), Gifore Technology (300022. SZ) mentioned that the "Action Plan" is conducive to promoting the scrapping and renewal of old agricultural machinery and accelerating the promotion and application of high-end, intelligent and green agricultural machinery equipment. Zoomlion (000157. SZ) also believes that the Action Plan will promote technological progress and industrial upgrading in the agricultural machinery industry.
Subway Design (003013. SZ) believes that with the increase of operation time and the iterative update of related technical equipment, there are needs for large and medium repairs and equipment renewal and transformation of rail transit related equipment systems, and the "Action Plan" will further promote the development of the rail transit stock transformation business market. Feilu Co., Ltd. (300665. SZ) also said that benefiting from the top-level policy support for equipment upgrading, rail transit equipment will usher in an era of comprehensive upgrading.
Opened medical (300633. SZ) believes that the promotion of the "Action Plan" is expected to be very effective in promoting the iterative upgrading of medical and health institutions and information facilities, accelerating the renewal and transformation of medical equipment such as medical imaging, radiotherapy, and surgical robots, and has an obvious medium and long-term driving effect on the entire medical device industry, especially high-end medical equipment enterprises.
Sinoma International (600970.HK) SH) believes that the building materials industry is a key industry for equipment renovation, and the demand for new technologies and new equipment will continue to be released by cement enterprises, and the market space for stock technological transformation is large. Beikuang Science & Technology Co., Ltd. (600980.HK) SH) said that the "Action Plan" encourages the upgrading and transformation of equipment in key industries, which will bring market opportunities for the upgrading of mining and metallurgical equipment.
Equipment manufacturers upstream of the Bowes shares (300441. SZ) believes that the Action Plan will have a positive impact on the company's compressors, vacuum pumps, hydraulic pumps and other business segments. Su Changchai A (000570.SZ) said that the "Action Plan" clarifies the renewal of old agricultural and industrial machinery, which creates a better policy environment for the application of internal combustion engines.
Wanma Co., Ltd. (002276. SZ) said that the "action plan" mentioned in the "new industrialization, energy conservation and carbon reduction and other key directions", "power, petrochemical, machinery and other key industries equipment renewal and technological transformation", "construction and municipal infrastructure equipment renewal", "security equipment transformation", "continue to promote the electrification of urban buses" and other directions, will bring full new opportunities and new needs to the company's power cable, communication cable, cable materials and new energy charging pile industry.
Nanjing Iron and Steel Co., Ltd. (600282. SH), Valin Steel (000932. SZ) believes that stimulus policies such as equipment renewal and trade-in of consumer goods are expected to significantly boost the downstream demand of the steel industry. Yun Aluminum Co., Ltd. (000807. SZ) said that the "Action Plan" will bring a new round of opportunities for the consumption of aluminum products in the fields of transportation, construction, electricity, machinery manufacturing and other fields.
In terms of consumer goods, BYD (002594. SZ) said that the "Action Plan" is good for the new energy vehicle industry, and it is expected that China's new energy vehicle market will continue to grow strongly in 2024, entering the era of 10 million vehicles, and the penetration rate is expected to break through.
Xingshuaier (002860. SZ) said that the key tasks specified in the "Action Plan" include the trade-in of household appliances and the promotion of the replacement of consumer goods for home decoration, which is of extraordinary significance to boost the confidence of the home appliance industry.
In addition, Eternal Asia (002183. SZ) believes that with the implementation of a new round of equipment renewal and trade-in and domestic substitution policies, the level of domestic electronics manufacturing has been continuously improved, and the demand for memory chips has gradually risen.
On March 22, GEM (002340. SZ) and JD.com signed the "Strategic Cooperation Agreement on Co-building a Recycling, Digital Supply Chain and Waste Commodity Recycling Platform", the two sides will jointly build a digital recycling and consumer goods trade-in platform, relying on JD's Internet platform advantages, to provide recycling services for consumers and enterprise users, and at the same time carry out recycling cooperation for waste electrical and electronic products, waste plastics, waste network equipment and other materials.
On April 7, the central bank announced the establishment of scientific and technological innovation and technological transformation re-loans, with a limit of 500 billion yuan and an interest rate of 1.75%, which was issued to 21 financial institutions, including the China Development Bank, policy banks, state-owned commercial banks, Postal Savings Bank of China, and joint-stock commercial banks, aiming to encourage and guide financial institutions to increase financial support for small and medium-sized technology-based enterprises, technological transformation and equipment renewal projects in key areas.
Galaxy Securities Research Report believes that on the one hand, the re-loan is a supporting financial support policy for large-scale equipment renewal, and on the other hand, it is also a continuation of the original 400 billion yuan of scientific and technological innovation re-lending and 200 billion yuan of special re-lending for equipment renovation. The central bank will issue re-lending to financial institutions at 60% of the loan principal, assuming that enterprises will lend at a ratio of 70%, the re-lending is expected to leverage more than one trillion yuan of investment.