ZheShang Securities: National subsidies for small household appliances category expansion, recommend paying attention to SUPOR and others

According to the Zheshang Securities research report, industry data shows that in 2025, most categories of small household appliances will recover growth, with essential categories seeing price increases, and long-tail categories like health pots experiencing both volume and price increases. The national subsidy mainly benefits three types of companies: 1) companies with a high proportion of essential categories and positioned in the mid-to-high end; 2) companies with a high proportion of health pots and power-related products; 3) companies with a high proportion of sales through JD.com and extensive subsidiary layouts. It is expected that with the expansion of national subsidies for small household appliances, domestic sales of various companies are likely to accelerate. It is recommended to pay attention to SUPOR (002032.SZ) and BEAR APPLIANCE (002959.SZ). Zheshang Securities' main viewpoints are as follows: Expansion of National Subsidies for Small Household Appliances In 2025, JD.com will subsidize a wider range of small household appliance categories, with JD.com self-operated nationwide shipping. Small household appliances, in addition to microwaves and rice cookers, are regular categories, and as of April 22, 36 new (incomplete statistics) small household appliance categories have been included in the subsidy. Tmall and Taobao have adopted region-exclusive policies, and as of April 22, the small household appliance policy covers a total of 16 regions, with significant expansion of subsidized small household appliance categories in some areas such as Zhejiang, Guangdong, Hubei, Hunan, and Shaanxi. Data from three parties shows that most categories in the small household appliance industry will recover growth in 2025, with essential categories seeing price increases and health pots and electric products in long-tail categories experiencing both volume and price increases. The firm expects that with the expansion of national subsidies for small household appliances, domestic sales of various companies are likely to accelerate. Expansion of National Subsidy Coverage, which the firm believes mainly benefits three types of companies Companies with a high proportion of essential categories and positioned in the mid-to-high end (essential categories such as rice cookers and microwaves have been included in the regular national subsidy categories in Q1, with significant subsidy strength and expected sustainability of the national subsidy likely to be better). 2) Companies with a high proportion of long-tail categories like health pots and power-related products (the stimulating effect of health pots and power-related products in this round of national subsidies is relatively obvious). 3) Companies with a high proportion of sales through JD.com, significant headquarters subsidy strength, and extensive subsidiary layouts (JD.com self-operated can ship nationwide, and the significant headquarters subsidy strength along with extensive subsidiary layouts can enjoy regional exclusive subsidies to a greater extent)