Damo: Guobu will benefit Xiaomi Group-W (01810) AIoT business in 2026

The Zhitong Finance App learned that Morgan Stanley released a research report saying that the Chinese government has clarified the scope of support and subsidy standards for the 2026 “two new” policies. Smartphones, tablets, smartwatches, and smart glasses will continue to offer 15% off sales prices, with a maximum subsidy of 500 yuan per item, while refrigerators, washing machines, televisions, air conditioners, computers, and water heaters will receive a maximum subsidy of 1,500 yuan per item. The bank believes that the newly announced policy is a positive catalyst for the technology and hardware industry because the market expects subsidies to decrease rather than remain the same. For consumer electronics products, the 15% subsidy will still benefit Xiaomi Group-W (01810)'s AIoT business next year.

Damo mentioned that the 2026 national supplement policy is almost the same in terms of technology and hardware products compared to 2025, but smart glasses have been added to the subsidy list. For consumer electronics products, the subsidy was slightly reduced from 20% in 2025 to 15% in 2026, and the upper limit was also reduced from RMB 2,000 to RMB 1,500.