Transferred from: Securities Times e Company

On Friday, the red market of the three major A-share indexes closed, all up more than 1%.

Among them, the Shanghai Composite Index closed at 3154.Houseoffun200freespins202203:00, since the low before the Spring Festival this yearHouseoffun200freespins20222635.09 points have rebounded nearly 20 per cent. In this round of A-share rebound, a number of industry sectors showed eye-catching performance, with the non-ferrous metals sector topping the list with an increase of 36.6%, followed by the household appliances sector with an increase of 35.6%, making it a dark horse that has attracted much attention recently. In addition, national defense and military industry, basic chemical industry, communications and other sectors increased by more than 30%.

However, it is worth noting that since May, with the continuous stimulus of the property market policy, the real estate sector has advanced by leaps and bounds, rising 13.6% within the month, followed by the building materials sector, up 7.2%, becoming the new main line of the current market.

From a fundamental point of view, it is not so surprising that non-ferrous metals outperform major plates, and A-shares have already set off too many rounds of the "periodic table" market during the year.

Since March this year, the rise in gold prices has continued to attract market attention, while gold and silver continue to refresh record highs, while copper, tungsten, nickel and other non-ferrous commodities also ushered in soaring prices. For example, taking tungsten, which is known as "industrial teeth," as an example, the price of tungsten concentrate has risen above 150000 yuan per ton since the beginning of this year, up more than 25 percent from the beginning of the year and reaching a 10-year high.

Under the upsurge of the industry boom, funds are in pursuit of the non-ferrous metal plate. According to Wind data, precious metals, represented by gold and silver, have risen the most in the Shenwan non-ferrous metals industry index since February 6, followed by tungsten, molybdenum and cobalt up more than 50 per cent and nickel, copper and lead and zinc by more than 40 per cent. In terms of individual stocks, the two stocks of northern copper and Xiaocheng technology doubled, followed by Jiaozuo Wanfang, Shengda resources, Societe Generale silver tin and so on.

Compared with the high-profile non-ferrous metal plate, the large-scale rebound of the home appliance plate is somewhat unexpected, but also reasonable.

According to Wind data, the household appliances sector of the Shenwan Industry Index has risen 35.6 per cent since February 6, with white goods, kitchen and sanitary appliances, small appliances and other outstanding performance, while the clean small home electronics sector rose 65.6 per cent. In terms of individual stocks, TCL Zhijia (rights protection) led the way with an increase of 118.13%, while Sichuan Jiuzhou, Kovos, Martians and ou Sheng Electrical Appliances rose more than 70%.

From a fundamental point of view, in the first quarter of 2024, the domestic sales of home appliances continued to repair the trend, the market demand for home appliances was robust, while the growth of overseas markets became a bright spot. According to the General Administration of Customs, the home appliance industry continued in 2023 in the first quarter, with exports of 161.49 billion yuan, an increase of 8.58 percent over the same period last year, and a cumulative increase of 20.86 percent.

In the first quarter of this year, the performance of listed companies was also considerable. The revenue of the three household appliance giants Midea, Haier and Gree increased by up to 10% year-on-year, and their net profits all achieved double-digit year-on-year growth.

It is worth noting that small household appliances have emerged as a new force in all categories. Of the 23 small household appliances listed companies, 19 had a year-on-year rise in net profit, the main reason for the increase in export revenue or the improvement in corporate performance. For example, the revenue of Stone Science and Technology in the first quarter was 1.841 billion yuan, an increase of 58.69% over the same period last year, and the net profit was 399 million yuan, an increase of 95.23% over the same period last year.

It is worth noting that the recent policy side has also brought a boost to the home appliance industry. In April this year, the "Action Plan for promoting the Trade-in of Consumer goods" jointly formulated by 14 departments, including the Ministry of Commerce, was announced to encourage places where conditions permit to subsidize the purchase of green smart home appliances. Subsequently, Zhejiang, Guangdong, Hunan and other places issued implementation plans for the trade-in of consumer goods, which clearly defined the scope of support and details of subsidies for consumers to participate in the trade-in of cars and home appliances.

Since May, the pattern of various sectors of the market has changed, and the real estate sector has once again become the focus. The real estate and building materials sectors have led the market higher since May, with the real estate services subsector up 24.39 per cent, according to Wind.

Recently, positive policies on real estate continued to be introduced. Since mid-late April, the market of the real estate sector has begun to heat up, and the rebound of Hong Kong real estate stocks is particularly considerable. Shimao Group has risen more than 270% since April 29. China Olympic Garden, South China City, time China Holdings, Kaisa Industry Group and so on rose more than 100%.