Summary of the latest developments 1 Semiconductor Manufacturing International Corporation(688981) 4q21 has strong performance and strong capital expenditure. 4q21 company’s estimated operating income is USD 1.58 billion, with a year-on-year increase of + 61.1% and a month on month increase of + 11.6%; The net profit attributable to the parent company was USD 534 million, with a year-on-year increase of + 107.7% and a month on month increase of + 66.1%. In 2022, capital expenditure remained strong, with a guideline of about US $5 billion. We believe that although the restriction of entity list has set many obstacles to the development of the company, the company is still the fastest-growing company among the top four pure wafer foundry factories in the world. The wafer foundry industry has high barriers to entry and is a technology, capital and talent intensive industry. According to the prediction of this front desk Jidian, the growth rate of the global OEM industry will be close to 20% in 2022, which is significantly higher than the overall growth rate of the semiconductor industry. Under the background of tight production capacity, some wafer factories in 2022q1 continue to raise OEM prices and are optimistic about the investment opportunities for valuation and repair of Chinese OEM enterprises. 2. Luxshare Precision Industry Co.Ltd(002475) join hands with Chery to create a precedent for vehicle ODM and open up long-term growth space. Luxshare Precision Industry Co.Ltd(002475) signed the strategic cooperation framework agreement with Chery group and plans to build a joint venture with Chery new energy to engage in the R & D and manufacturing of new energy vehicles; Meanwhile, the controlling shareholder of the company, Lixun Co., Ltd., plans to spend 10.054 billion yuan to buy 19.88% equity of Chery holdings, 7.87% equity of Chery shares and 6.24% equity of Chery new energy. The iterative trend of intelligent and electric vehicles is obvious, and the demand for ODM of complete vehicles by brands is expected to increase. Tesla reduces the difficulty of building cars through vertical integration. Consumer electronics enterprises such as apple, Xiaomi and Huawei enter the market to produce cars. Consumer electronics and automotive electronics have similar development logic. Consumer electronics enterprises tend to integrate existing EMS resources and expand to the field of automotive electronics. Consumer electronics EMS suppliers represented by Luxshare Precision Industry Co.Ltd(002475) , Wingtech Technology Co.Ltd(600745) and Hon Hai group are expected to give full play to the advantages of long-term cooperation. It is suggested to pay attention to Luxshare Precision Industry Co.Ltd(002475) , Wingtech Technology Co.Ltd(600745) , Shenzhen Everwin Precision Technology Co.Ltd(300115) .
Driven by the strong demand for 5g terminals and automotive electrification, the profit side of the electronics industry will accelerate growth in 2022 and maintain the “recommended” rating. In terms of domestic substitution of semiconductors, it is suggested to pay attention to the field of wafer OEM Semiconductor Manufacturing International Corporation(688981) (0981. HK), Huahong semiconductor (1347. HK), etc; Maxscend Microelectronics Company Limited(300782) (300782. SZ), Wingtech Technology Co.Ltd(600745) (600745. SH), Montage Technology Co.Ltd(688008) (688008. SH) with core competitiveness in the design field; In terms of equipment, it is recommended to pay attention to Naura Technology Group Co.Ltd(002371) (002371. SZ), Advanced Micro-Fabrication Equipment Inc.China(688012) (688012. SH), etc. In terms of automotive electronics, it is recommended to pay attention to intelligent cockpit company Foryou Corporation(002906) (002906. SZ), camera enterprise Shunyu optical technology (2382. HK), Lianchuang Electronic Technology Co.Ltd(002036) (002036. SZ), Ofilm Group Co.Ltd(002456) (002456. SZ) and vehicle specification CIS supplier Will Semiconductor Co.Ltd.Shanghai(603501) (603501. SH). Focus on {s0025} and {s0025.47z} as well as the core consumption chain of iPhone (s0021.47z) manufacturers. In terms of LED, it is suggested to pay attention to the downstream display faucet Leyard Optoelectronic Co.Ltd(300296) (300296. SZ), LED chip faucet Sanan Optoelectronics Co.Ltd(600703) (600703. SH) and China led solid crystal machine faucet Shenzhen Xinyichang Technology Co.Ltd(688383) (688383. SH).
Risk tip: the prosperity of semiconductors has fallen more than expected, and the risk of domestic substitution is less than expected.
