BYD Electronic (00285) rose nearly 6%, as of press time, up 5.7% to HK$41.75, with a turnover of HK$438 million.$BYD ELECTRONIC(00285.HK)

On the news front, a relevant official from the Central Financial Office stated that this year's "Two New" policies have been very effective, and next year will see increased efforts to expand the scope, allocating more funds to include more consumer goods in the support range and optimizing the subsidy distribution process. It is reported that on November 26, Jiangsu issued the "Jiangsu Province Strengthening Policy·3C Digital Products Subsidy Special Activity Operation Guide"; on December 12, Sichuan also began organizing applications for enterprises participating in the 25-year home appliance and 3C trade-in program. Morgan Stanley stated that for smartphone OEM and supply chains, the subsidy policies will serve as short-term positive catalysts, believing that BYD Electronic and others will be the main beneficiaries.

Puay Yin International pointed out that in the consumer electronics supply chain, BYD Electronic is the top recommendation. The company's acquisition of Jabil this year, assembly for major clients' tablets, recovery in Android business, and rapid growth in automotive electronics will all drive profit growth with high certainty. Moreover, as a Hong Kong-listed stock, BYD Electronic may enjoy a revaluation from a relatively low position.

Personal interpretation: From the recently released policies, central and local governments are actively stimulating the consumer electronics market through "Two New" policies and specific 3C digital product subsidy activities, similar to using national subsidies for purchasing consumer electronics on JD.com. According to relevant reports, companies like BYD Electronic will significantly benefit from these policies, driving their performance growth, and their performance should continue to be monitored.