The Ministry of Commerce publishes a solicitation opinion to abandon electronic concepts or rise

Yesterday, the Ministry of Commerce promulgated the "Administrative Measures on the Recycling of Waste Electrical and Electronic Products (Draft for Solicitation of Comments)" and will implement the filing management system for the recycling of waste electrical and electronic products. According to industry insiders, this means that the chaotic operation of the industry will end, and the concept of discarded electronics may be focused by the market in the future.

â–  Method

The recovery management will implement the “registration method” of the filing system, which states that the state implements the filing management system for the recycling of waste electrical and electronic products. The competent commercial authorities at the county level or above are the record-keeping agencies for the recycling of waste electrical and electronic products. If a county-level government does not have a competent commerce department, it shall register with the government’s commerce authority at the next higher level. The entity engaged in the recycling of waste electrical and electronic equipment shall, within 30 days after obtaining the business license, register with the competent commercial authority at the same level of registration in accordance with the principle of territorial management. The State encourages the diversification of the main body of recycling of electrical and electronic products, and supports the recovery and operation of waste electrical and electronic products by producers, sellers, maintenance organizations, after-sales service organizations, waste electrical and electronic product recovery entities, and waste electrical and electronic product processing enterprises.

â–  Interpretation

The industry's enterprises are expected to carry out the integration of the draft for the solicitation of comments. Xu Chong, the chief investment advisor of New Land, believes that the Ministry of Commerce has directly responded to the circular economic policy proposed by the country. In circular economy planning, discarded electronic products should be the most relevant industry in the stock market, and may be focused on by the market in the future.

Liu Xinyan, the first entrepreneurial securities analyst, said that the introduction of the Opinion Draft means that the chaotic operation of waste electrical and electronic products will end. Some large electronic waste product companies are expected to integrate and promote the development of a number of leading enterprises.

â–  Strategy

Can focus on small-cap stocks in the investment strategy, Xu Chong believes that the relatively large number of discarded electronic concept stocks, can form a plate effect, and if the country can later launch a corresponding subsidy policy, is undoubtedly a major advantage. Now that the abandoned electronic concept stocks have not been hyped by the market, there is room for in-depth excavation and investors are advised to pay attention to dips. For individual stocks, investors are advised to actively follow the stocks of GEM and Dongjiang Environmental Protection in this sector.

Liu Xinyan said that the relevant concept stocks include Dongjiang Environmental Protection, Greenmei, Yiqiu Resources, Sichuan Changhong, and TCL Group. As the share capital of Sichuan Changhong and TCL Group is too large, the proportion of beneficiaries is relatively small. Conversely, Dongjiang Environmental Protection, Glimme, and Yiqiu Resources have a relatively large share of the benefits due to the overall moderate share capital. Investors can focus on such small-scale concept stocks.