The first pilot provinces and cities no longer enjoy the financial subsidy policy as our response to the global financial crisis in 2008, is an important policy to stimulate consumption - household appliances to the countryside policies will be taken to the pace of Ministry of Finance, the Ministry of Commerce, engineering letter to the Department jointly issued a notice, November 30, 2011, three provinces and one city in Shandong, Sichuan, Henan, Qingdao, home appliances to the countryside policy end as scheduled. Since December 1, 2011, the place of household registration for the three provinces and one city of the original target subsidies to buy home appliances products (including local autonomy and increasing the variety), no longer enjoy the financial subsidy policy. Clear notice, at 0:00 on January 6, 2012, the successful region is limited to three provinces and one city of home appliances to the countryside production enterprises, sales enterprise, as well as provinces and one city all the appliances to the countryside to record sales outlets in the home appliances functional competence in the information management system will be stopped. Beginning at midnight on March 1, 2012, the payment function of the audit of the financial departments of the provinces and one city in the information system will be closed. Notice also stressed that the policy after the expiration of three provinces and one city home appliances sales companies should be urged to the identity of the specified store the original belongs to the record sales outlets immediately removed the forms of publicity. In three provinces and one city is not sold out for home appliances, you can continue as a general merchandise sales. Data show that since December 2007, the pilot policy of home appliances in China in three provinces and one city in Shandong, Sichuan, Henan, Qingdao. Extended to 14 provinces in December 2008 and February 2009 for the nationwide. Home appliance product from the last four to eight, before the introduction of color TV sets, refrigerators, mobile phones, washing machines, new motorcycles, computers, water heaters and air conditioning. Home appliances to the countryside policy results in significantly, stimulating consumption effect. As of the first half of 2011, the national home appliance product sales of 50.938 million units, sales of 124.575 billion yuan, an increase of 56.7% and 83.7% respectively. As of June 30, 2011, home appliances cumulative sales of 165 million units, sales of 366.37 billion yuan. It is understood that the implementation of a four-year plan according to the original home appliances to the countryside, the initial implementation of the three provinces and one city to the end of November this year will end, the follow-up to promote the provinces according to plan the final end time for a 2013 the end. Policy exit the appliance market, household electrical appliance enterprises, Bayesian thinking (Beijing) Consulting Song Rui, a researcher said that the exit of the policy of home appliances, the enthusiasm of the rural market to buy home appliances will be weakened, and the future of home appliances market may occur to the status of the supply far exceeds demand, the industry will lead to a price war. The policy appliances to the countryside to enter to exit the program, the first pilot in December stop notice said, November 30, 2011, Shandong, Qingdao, Henan, Sichuan, home appliances to the countryside policies scheduled end of the as our response to the global financial crisis in 2008, is an important policy to stimulate consumption - household appliances to the countryside policies will mark the footsteps of reporter recently learned from the Ministry of Finance, the three departments of the Ministry of Finance, Ministry of Commerce, the Ministry of Industry jointly issued a notice that, from November 30, 2011, Shandong, Qingdao, Henan, Sichuan (hereinafter referred to appliances to the countryside policies of the three provinces and one city Since December 1, 2011, the place of household registration for the three provinces and one city of the original target subsidies to buy home appliances products (including local autonomy and increasing the variety), no longer enjoy the financial subsidy policy. The In this regard, Bayesian thinking (Beijing) Consulting Song Rui, a researcher said that under the policy, driven by home appliances to the countryside, the household electrical appliance enterprises benefited and achieved good results, but also further stimulate the industry continues to expand ambitions, including some large enterprises to expand production capacity and some small businesses have joined the household appliance manufacturing. With the exit of the appliances to the countryside policies, the enthusiasm of the rural market to buy will be weakened with the current international market is not very optimistic about the future of home appliances market could supply far exceeds demand situation, the industry will lead to a price war. Pursuant to notice, at 0:00 on January 6, 2012, the successful region is limited to three provinces and one city of home appliances to the countryside production companies, sales companies and all three provinces of home appliances to the countryside for the record sales outlets in the home appliances to the countryside functional competence in the information management system will be stopped. Beginning at midnight on March 1, 2012, the payment function of the audit of the financial departments of the provinces and one city in the information system will be closed. Three provinces and one municipal finance departments should strengthen the policy advocacy at the same time, co-ordination of all aspects of timely payment audit subsidy funds (subject to the sales invoice and identification cards) buy home appliances products in the implementation of the policy period, it is necessary to ensure the safety of funds, but also to do should make up make up make. The At the same time, the circular emphasizes that policy after the expiration of three provinces and one city home appliances sales companies should be urged to specify the store countryside related promotional materials to the abolition of home appliances to the countryside area (counters) shall not use any form of publicity in the name of home appliances to the countryside. In three provinces and one city is not sold out for home appliances, you can continue as a general merchandise sales. It is understood that, since December 2007, China’s Shandong, Sichuan, Henan, Qingdao three provinces and one city pilot. Response to the global financial crisis, since December 2008, home appliances for the 14 provinces, municipalities and autonomous regions, promotion, and then in February 2009 for the nationwide； products also increased to eight from four in the past, In addition to the previously released America’s air conditioning the maintenance appliances to the countryside policy with remarkable results, stimulating consumption effect. As of the first half of 2011, the national home appliance product sales of 50.938 million units, sales of 124.575 billion yuan, an increase of 56.7% and 83.7% respectively. As of June 30, 2011, home appliances cumulative sales of 165 million units, sales of 366.37 billion yuan. It is understood that the implementation of a four-year plan according to the original home appliances to the countryside, the initial implementation of the three provinces and one city to the end of November this year will end, and subsequent promotion of the 14 provinces, municipalities and autonomous regions in addition to the outside of the early provinces and one city By the end of November 2012, as planned, the rest of the end of time will be the end of January 2013. Obvious events the Southwest Securities: demand-driven category growth: Commerce Department released the latest appliances to the countryside sales data: August 2011 for home appliances, sales 6.96 million year on year, the chain were down 1.3% and 7.3%； achieved sales of 18.66 billion yuan, an increase of 9.5 percent, down 6.6%. January to August this year, home appliance product accumulated sales of 65.41 million units, achieved sales of 163.2 billion yuan, an increase of 41.3% and 61.9% respectively. As of August 2011, for home appliances cumulative sales of 180 million units, sales of 405 billion yuan, 46 billion yuan for subsidies. Comment: the first pilot provinces consumption remain strong in Henan and Shandong provinces as the first pilot in the first four years of the appliances to the countryside activities still maintain strong growth momentum. From a regional perspective, Shandong, Henan and other six provinces sales surpassed $ 10 billion, together accounted for more than 50% of the total sales for home appliances； from the product category, refrigerator, color TV sales exceed 40 million, for a total of total sales the amount of 50%. From the enterprise, Haier Group, Hisense Group, Midea Group ranked sales before 3 1/3 of the total sales in the month to the countryside. Air conditioning sales of maintain the high degree of prosperity in rural air conditioning sales growth is maintained, refrigerator, color TV sales data slowdown, the weak performance of the washing machine. In terms of sales, refrigerator, color TV sales. China’s air conditioning to maintain the current relatively high regional disparities. With the air conditioning sales enterprise price adjustment in place, air conditioning domestic market will maintain steady growth of about 15%. Quickly open 34 market at very low retention rates, giving further room for growth of the air conditioning industry. The directly stimulating the demand for category growth characteristics obviously the water heater sales in August jumped 66 percent year-on-year growth in each category, demand-pull. Policy inflection point of the appliance industry in the second half of 2011 approaching, the policy-driven sales growth has somewhat slowed down trend. Along with existing consumer appliances stimulus gradually withdraw from the stage of history, based on demand-driven consumer appliances will show a solid growth trend. 34 market, the ownership of household appliances is far from being touched growth ceiling, brand, channel large-scale consumer electronics company will be able to continue the income. Risk Warning industry growth below expectations, rising raw material prices-than-expected. The Haitong Securities : home appliances to the countryside in August sales fell 1.3% event: The Commerce Department recently released the sales data of the latest home appliances to the countryside: country bringing home appliances were sold in August 2011 6.96 million year on year, the chain were down 1.3% and 7.3%； achieved sales of 18.66 billion yuan, an increase of 9.5 percent, down 6.6%. January to August this year, home appliance product accumulated sales of 65.41 million units, achieved sales of 163.2 billion yuan, an increase of 41.3% and 61.9% respectively. As of August 2011, for home appliances cumulative sales of 180 million units, sales of 405 billion yuan, 46 billion yuan for subsidies. From a regional perspective, the six provinces of Shandong, Henan and other sales surpassed 10 billion, together accounted for more than 50% of the total sales for home appliances； from the product category, refrigerator, color TV sales of over 4 billion Yuan, 50% of the aggregate total sales. From the enterprise, Haier Group, Hisense Group, Midea Group ranked sales before 3 1/3 of the total sales in the month to the countryside. Comment: countryside sales in August fell 1.3%, sales rose 9.5 percent. Appliances to the countryside declines, according to Commerce Department data, the second quarter, sales in July, sales were up 12%, 25%, but in August the countryside growth data remains in the doldrums, sales fell 1.3 percent, lower than the market expectations. Channels research to understand the air conditioning sales in rural areas showed rapid growth, refrigerator, color TV sales is large but the base under the pressure of slowdown, weaker performance in the washing machine. The impact of policies to stimulate the weakening of the effect and the three provinces and one city policy is about to expire, the appliances to the countryside of rural proportion of consumer appliances gradually reduced； combined with our investigations, we hypothesized that the rural market, sales of home appliances may be slightly better than the appliances to the countryside the data. Refrigerator, color TV sales, water heater this month, an increase of 66%. The largest category in the refrigerator is still the countryside product in August, with sales of over 40 billion yuan, the main beneficiaries of the season in July / August refrigeration products. It is noteworthy that the water heater sales this month jumped 66 percent year-on-year growth rate is more prominent in each category. Shandong, Henan and other six provinces sales accounted for more than 50%. The first pilot provinces and cities of sales accounted for this month is still high, the exit policy for refrigerator, washing machine color TV industry is bound to cause short-term impact； but we still maintain the beginning of point of view, to enhance the medium to long term policy to withdraw in favor of the leading enterprises share. Our views and investment advice. According to investigations and studies, the onset of the rural demand for air conditioning, refrigerator, washing machine color TV although the growth rate slowed down but still maintain a certain growth； by the appliances to the countryside to stimulate the effect of weakening the exit policy on the industry caused by the impact of short-term impact to the countryside products in the consumer appliances in rural areas gradually reduce the proportion, we speculated that the rural market, appliance sales may be slightly better than the data appliances to the countryside. From the point of view of the base, retention, air-conditioned space, currently covered by the popularity of demand in rural areas start to drive the highest degree of economy； air conditioning strong sales in the context of a wide range of hot weather in August, the growth rate is expected to re-than-expected； currently on the market for air conditioning industry in the second half The growth rate is very cautious, the possibility of large-than-expected. After a period of adjustment, the three leading business valuation advantage again apparent: Gree Electric Appliances, 2011 to consider the issuance of diluted PE is only 11 times succeed； Qingdao Haier shares corresponding to 2011 and 9.5 times PE； Midea dynamic PE14 times； valuations are at a historic bottom, to maintain a risk warning. Industry slowdown； raw material prices continued to rise； intense price competition. Everbright , securities: the appliance industry in the second quarter growth slowed cost pressures to eliminate industry event brief: appliance plate Center Daily News bulletin finished. The second quarter growth slowed, cost pressures and basic elimination of the first half of 2011, appliances segment revenue grew 32%, higher than the 23% growth in retail sales of household appliances and audiovisual equipment rate, indicating that continue to enhance market concentration. Due to cost pressures, attributable to listed companies, total shareholders’ net profit grew 27 percent, slightly lower than revenue growth. The first quarter of the raw material cost pressures, plates gross margin fell 1.5 percentage points, net profit fell 0.2 percent. Appliance industry to raise prices with a lag, get basic digest cost pressure to the second quarter, gross margin rose 0.4 percentage points, net profit remained stable. Large household appliances in the second quarter decline in gross margin trend is reversed, small appliances and lighting gross margin in the second quarter accelerated decline. Outstanding air conditioning industry chain, hood, gas stove, gas water heater is also very characteristic of high growth of benefit in the air conditioning industry, and beauty Gree Electric Appliance revenue growth of white plates driven by an increase of 46 percent in the first half The growth rate was significantly higher than other sub-plate. The same time, the air conditioning driven by the upstream parts such as Hailigufen, shares of three flowers, shield security environment to achieve rapid growth, indirectly lead to the household electrical appliance parts plate to achieve high growth. It is worth mentioning is the hood, gas stoves, gas water heater company performance more unique, Vantage, the boss appliances, and electrical revenue growth and stable net interest margin growth was significantly higher than revenue growth, reflects the sub-industry unique shift the cost of capacity. Overseas household electrical appliance enterprises in : revenue growth and stability, but the second-quarter profit fell significantly the first half of 2011 overseas home appliance enterprise overall revenue growth of 16%, an increase of good enterprises are mainly Japanese companies, an an increase of 24% http://www.shenzhousv.org. A quarter and second quarter revenue growth of 15% and 16%, respectively, stable performance. Net profit performance is not satisfactory, a marked decline in U.S. and European companies and Korean companies performance, only the profitability of Japanese companies in the first half of the overall net profit growth of 10%. The second-quarter net profit of the overall decline of 6%, relative to the first quarter increase of 36% a significant downward trend. Appliance plate valuation after the crash of into the investment area, but not yet available the catalyst in August a tough month, the household appliances sector as a whole fell by 9 percentage points, the industry among the top decliners. Shuaikang water heater repair home appliances plate valuation has fallen to a lower position, the overall dynamic valuation of 16 times. The white plate is the valuation after the financial services. Therefore, we believe that the appliance plate as a whole has been at the bottom, with investment value. Up only a lack of catalyst. The Dongxing securities: the appliance industry slowdown concerned about leading enterprises Event: household appliances industry, August 31, 2011 40 listed companies released 11 years completed, as a whole continued to maintain steady growth. Point of view: 1, the first half of industry slowdown, air conditioning prices to outshine the first half of 2011, the overall industry revenue and attribution to the parent company net profit increased by 31.58 % and 34.47%, higher than all the A shares 27.17%, and 23.77%. Throughout the 2000 years since 10 years, from 2000 to 2008 (except 2001 and 2002) the appliance industry’s revenue growth were lower than the A shares of revenue growth, revenue growth of the home appliance industry since 2009 began continued to exceed the A shares of the overall revenue growth. This is mainly due to the improvement of the environment at home and abroad: the domestic front, to boost domestic demand and national implementation of home appliances to the countryside and energy-saving Huimin subsidy policy, at the same time, the urbanization rate rising, the stimulation of domestic demand； foreign, economic crisis After the demand for developed countries is gradually recovering, at the same time a substantial increase in demand from emerging markets. The first half of 2011 business environment is more complex, the state continued implementation of severely regulating the real estate market, raw material and labor costs caused by inflation of the enterprise has created a great pressure on the debt crisis in Europe and U.S. debt crisis overseas demand shock is large, the appliance industry in such a severe case of it is not easy to maintain revenue and net profit growth of more than 30%. Appliances to the countryside this year, sales data undulating, high growth rate of the first quarter, into the second quarter of negative growth, has launched four years of home appliances to the countryside policies dissipates is also reasonable. The rural market in home appliances, driven by the rural households of color TV, refrigerator, washing machine ownership rapid growth, so growth has slowed down, the air conditioning still maintain a high growth. The , air-conditioning market performance far more than the refrigerator, washing machines, small appliances, TVs and other home appliances. Air conditioning domestic sales in the first half of the export year-on-year increase of 34.55%, 27.44%. Domestic washing machine for the first time negative growth in June, with the higher base and retention related to the first half of the domestic washing machine, export increased by 19.24%, 13.22%. Refrigerator sales better than washing machines, refrigerators domestic sales in the first half, exports grew 26.35%, 10.74%. Color TV, the first half of domestic sales is lower than the market had expected a 10 percent increase in sales and sales fell 36% and 13%. Industry conditions in the second half of the year is still more complicated in the second half of countries continue to