Hong Kong Stock Concept Tracking | Guangdong Province aims to achieve the goal of replacing old electric bicycles with new ones, striving for 400,000 units. Leading enterprises will benefit (with concept stocks attached)

On September 19, the Guangdong Electric Vehicle Association held a training session to interpret the "old for new" policy for electric bicycles in Guangdong Province. The session introduced subsidy standards, implementation processes, etc., to help production and sales enterprises in the electric bicycle industry understand the policy and related implementation requirements, grasp the operation process of the "old for new" system, actively respond to national policies, boost consumption, and promote industry development.

The relevant person in charge of the Guangdong Electric Vehicle Association stated that the implementation period of the "old for new" policy for electric bicycles in Guangdong Province is from September 1 to December 31, 2024. Consumers participating in the program can receive a one-time subsidy of 500 yuan by scrapping registered and licensed old electric bicycles in Guangdong Province and purchasing a qualified new vehicle priced at 1500 yuan or more.

Previously, the General Office of the People's Government of Guangdong Province issued the "Implementation Plan for Making Good Use of Ultra-Long-Term Special National Debt Funds to Support the Implementation of the 'Old for New' Policy for Consumer Goods," which set the province's goal of striving to replace 400,000 electric bicycles through the "old for new" program.

On August 30, the Ministry of Commerce and five other departments issued the "Implementation Plan for Promoting the Replacement of Electric Bicycles with New Ones," organizing qualified products from compliant electric bicycle manufacturers to participate in the program. This is the first time the country has introduced a policy for replacing old electric bicycles with new ones.

Encouraging the replacement of lithium battery vehicles with lead-acid vehicles: "For consumers who replace old lithium-ion battery electric bicycles with lead-acid battery bicycles, the subsidy will be increased appropriately," clearly supporting lead-acid battery vehicles.

According to a report released by Kaiyuan Securities earlier, based on Deloitte's data forecast, 62.1% of the demand for electric two-wheeler vehicles in 2024 will come from replacement demand.

Leading Enterprises in the Electric Bicycle Industry:

YADEA Holdings (01585): YADEA sold approximately 1.8 million units in August, a slight decrease from last year's 2 million units, close to a 10% decline. Despite this, YADEA's Crown series still accounts for over 45%, maintaining control of models priced below 2500 yuan with slight room for price increases. With the implementation of the new national standard, costs will increase, leading to the gradual elimination of small brands. YADEA's product unit price is expected to continue to rise. Currently, the high-end series accounts for about 40%, with a target of increasing to 60% to 65%. Compared to competitors, YADEA's product unit price remains relatively low, with significant investment in core components affecting profit performance to some extent.

Lead-Acid Battery Related Enterprises:

Tianneng Power International Limited (00819): A global leader in lead-acid batteries. The company stated that in the domestic market for lead-acid power batteries for electric light vehicles, the company's market share has remained at the top, surpassing 45%