Main points
This paper will discuss the investment opportunities of the overall sector in 2022 from the perspective of the annual investment strategy of the electronics industry. We believe that the electronics industry will still maintain a growth trend in 2022. The structural opportunities of the industry as a whole are greater than plate opportunities. We need to focus more on subdivided tracks and select high-quality stocks. We put forward three key words for investment in the electronics industry next year: self-reliance and self-improvement, carbon neutralization and metauniverse.
The corresponding three investment directions are semiconductor, military electronics and consumer electronics, and three optimal investment lines are derived: semiconductor equipment and materials + military electronics (corresponding to self-reliance and domestic substitution), new energy vehicle chips and parts (corresponding to scientific and technological carbon neutralization), VR / Ar + IOT + HD display (corresponding to meta universe infrastructure construction).
“Self reliance and self-improvement” moves towards high-quality development and continues to strengthen the national strategic scientific and technological force. We believe that “self-reliance and self-improvement” will be one of the important strategic objectives for the country to achieve high-quality development in the future, which is inseparable from the independent control in the fields of Electronic Science and technology and national defense and military industry. China’s semiconductor industry needs to solve the “neck” problem from the source, and the localization of equipment and materials is imminent. China’s semiconductor industry has a large replacement space. Under the background of supply-demand mismatch accelerating the transfer and expansion of wafer factories to the mainland, domestic manufacturers have ushered in a better investment time window and opportunities. At the same time, the self-reliance of national defense industry is expected to further strengthen the national strategic scientific and technological force, and the fields of special integrated circuits, FPGA and infrared sensors are expected to usher in a high business cycle with upgrading.
The goal of “carbon neutralization” promotes the rapid development of new energy industry, and domestic automotive chips and parts usher in long-term opportunities. We believe that the energy reform under “carbon neutralization” will drive the rapid growth of production and sales of new energy vehicles. Benefiting from this, the demand for automotive chips has increased significantly. At the same time, automotive intelligence promotes scientific and technological innovation and brings new growth opportunities for traditional automotive parts. As one of the core products of power semiconductors, IGBT has great market demand not only in trams, but also in charging piles, photovoltaic wind power, industrial control and other fields. With the rapid development of the Shanxi Guoxin Energy Corporation Limited(600617) industry, domestic manufacturers have ushered in greater opportunities for breakthrough and growth. In addition, automotive parts such as optics and connectors are also expected to benefit from new energy vehicles and usher in a new round of growth.
Before the soldiers and horses arrive at the grain and grass, VR / Ar + IOT + HD display is the bottom foundation of the “meta universe”.
We believe that the initial stage of “meta universe” is the bottom construction of infrastructure, including chips, servers, network connections and terminal devices. VR / AR devices, IOT devices and high-definition display devices will be the cornerstone of the connection of all things and the underlying foundation for the realization of the “meta universe”. With the continuous iteration of VR / AR technology, the gradual improvement of application ecology and the continuous upgrading of end products, the industry is expected to enter a period of rapid growth. IOT equipment and industry chain related enterprises represented by TWS headphones and smart watches usher in better development opportunities. Terminal displays such as mini, micro led and OLED are expected to benefit from the “meta universe” and open new growth space.
Investment advice
Maintain the “overweight” rating of the electronics industry in the next 12 months. We are optimistic about “self-reliance and self-improvement”
For the investment opportunities in semiconductor equipment and materials, it is recommended to have Shanghai Wanye Enterprises Co.Ltd(600641) of China’s strongest ion implantation equipment company kestone and Suzhou Uigreen Micro&Nano Technologies Co.Ltd(688661) of semiconductor test probes. It is recommended to pay attention to Thinkon Semiconductor Jinzhou Corp(688233) of large-diameter monocrystalline silicon materials and silicon electrodes; It is suggested to pay attention to the leader of special integrated circuits Unigroup Guoxin Microelectronics Co.Ltd(002049) , the global leader of infrared detection Raytron Technology Co.Ltd(688002) , and the leading FPGA enterprise in China Shanghai Fudan Microelectronics Group Co.Ltd(688385) ; “Carbon neutralization” brings investment opportunities related to the new energy vehicle industry chain. It is recommended to pay attention to IGBT leader Zhuzhou Crrc Times Electric Co.Ltd(688187) , optical lens leader Lianchuang Electronic Technology Co.Ltd(002036) , and connector leader Suzhou Recodeal Interconnect System Co.Ltd(688800) ; It is suggested to pay attention to VR / AR leading Goertek Inc(002241) , IOT chip leading Bestechnic (Shanghai) Co.Ltd(688608) , and LED chip leading Sanan Optoelectronics Co.Ltd(600703) .
Risk statement
The prosperity of the semiconductor industry has declined, and the growth of domestic substitution, new energy industry and meta universe development are lower than expected.
(Shanghai Securities)
