Core view
The industry valuation is at a historical low, focusing on the performance catalysis and the recovery of market risk appetite. In the past week, the Shanghai Composite Index fell by 1.77%, electronics fell by 1.33%, semiconductors in sub industries rose by 0.18%, optical optoelectronics fell by 2.87%, electronics fell by 20.58% since the beginning of the year, ranking the second in the industry. The industry valuation is at a historical low. Compared with 2018, when the market is pessimistic about the spatial consistency of consumer electronics volume and price growth, we believe that the “electronic +” trend represented by aiot and smart cars remains, In the short term, focus on the performance catalysis of the financial reporting season and the recovery of risk appetite caused by the easing of the multilateral situation and the reduction of fluctuations in peripheral markets. The high prosperity and valuation elasticity of the semiconductor sector (especially the upstream equipment, materials and vehicle specification market) are still important products for the current market game rebound. Combined with the views of the previous semiconductor series reports, focus on recommending the leading direction of “equipment, simulation and power”. In addition, the folding screen, VraR and glory industrial chain in the stage of “quantitative change leads to qualitative change” still have unexpected potential throughout the year.
Mainstream silicon wafer manufacturers will raise the contract price, and the capacity of liandian in 2023 has been fully booked. According to the Taiwan media economic daily, wafer manufacturers universal wafer, TSMC and Hejing have successively signed long-term supply contracts with customers. As the one-year long contract enters the negotiation stage of the new contract, Hejing and TSMC will increase their quotation by nearly 10%, and universal wafer will gradually increase their quotation. Meanwhile, universal wafer announced on March 15 that it would build a new 12 inch semiconductor wafer factory in Italy, which is expected to be opened in the second half of 23 years. According to Taiwan media juheng.com, the capacity of liandian in 2023 has been fully booked by customers and can only meet half of customers’ needs. In the context of high prosperity of wafer manufacturing, continue to recommend equipment and material leaders Naura Technology Group Co.Ltd(002371) , Shanghai Wanye Enterprises Co.Ltd(600641) , Hangzhou Lion Electronics Co.Ltd(605358) and power semiconductor IDM manufacturers Hangzhou Silan Microelectronics Co.Ltd(600460) , Wingtech Technology Co.Ltd(600745) .
The demand for automotive power semiconductors is strong, and large silicon carbide factories are expanding frequently. Driven by the electric vehicle market, the demand for power semiconductors and SiC is strong, and the production capacity continues to be in short supply. Infineon, Bosch and other large factories have expanded their production one after another. As one of the few 6-inch SiC OEM manufacturers, Hanlei technology has been fully loaded with orders until the end of the year. In addition, last week, European Soitec announced that it would invest about 2.3 billion yuan to build a new SiC wafer factory to realize the mass production of polycrystalline silicon carbide substrate (3C SiC). This technology thins SiC single crystals and bonds them on SiC polycrystalline substrate to reduce the consumption of single crystals and help reduce the cost of SiC devices by 50%. Previously, the subsidiary of Sumitomo Metal in Japan was also expanding the production capacity of 3C SiC and plans to produce 120000 pieces per year. Under the background of high prosperity of the industry, the power IC industry chain continues to recommend IDM manufacturers Hangzhou Silan Microelectronics Co.Ltd(600460) , Wingtech Technology Co.Ltd(600745) , etc. with high self-sufficiency rate of production capacity, rapid product iteration, introduction and mass production experience in the vehicle specification market.
Omdia predicts that the global shipments of folding screen mobile phones will reach 61 million in 2026. According to omdia data, in 21 years, the global shipments of folding screen mobile phones were 9 million (YoY: 309%), of which Samsung is the largest folding screen mobile phone brand in the world, and the shipments of Z flip 3 and Z fold 3 reached 4.6 million and 2.5 million respectively; In 21 years, Huawei shipped 900000 folding screen mobile phones, ranking second. Omdia predicts that the global shipments of folding screen mobile phones will reach 14 million in 2022 and 61 million in 2026. We expect that vivo, Huawei and Xiaomi will successively launch new folding screen machines in Q2, with frequent innovation catalysis in the industrial chain. We will continue to recommend Jiangsu Gian Technology Co.Ltd(300709) , Kunshan Kersen Science & Technology Co.Ltd(603626) , Wuhu Token Sciences Co.Ltd(300088) and other related targets.
Vehicle mounted VR technology will land on Audi this summer. According to cinno, the on-board VR entertainment company holoride announced that its helmet based VR entertainment system will debut in some Audi models equipped with the latest MIB 3 software in June. Holoride believes that with the popularity and maturity of automatic driving, the on-board content and entertainment market is ushering in a good opportunity for development. Allied market research predicts that the global automotive VR / AR market will reach 674 million US dollars in 2025. We believe that as the hardware entrance of the meta universe, VR / AR is expected to be widely used in games, social networking, office, education, automobile and other scenes, with broad growth space. We continue to recommend Goertek Inc(002241) , Hongli Zhihui Group Co.Ltd(300219) , Wuhu Token Sciences Co.Ltd(300088) , etc.
Key portfolio
Consumer electronics: Wingtech Technology Co.Ltd(600745) Shenzhen Transsion Holdings Co.Ltd(688036) , Hangzhou Hikvision Digital Technology Co.Ltd(002415) , BOE a, Hongli Zhihui Group Co.Ltd(300219) , Suzhou Shihua New Material Technology Co.Ltd(688093) , Kunshan Kersen Science & Technology Co.Ltd(603626) , Shenzhen Everwin Precision Technology Co.Ltd(300115) , TCL Technology
Semiconductor: Sg Micro Corp(300661) \ , 3Peak Incorporated(688536) , Maxscend Microelectronics Company Limited(300782) , Gigadevice Semiconductor (Beijing) Inc(603986) , Tongfu Microelectronics Co.Ltd(002156) , Jcet Group Co.Ltd(600584) , Sai Microelectronics Inc(300456)
Equipment and materials: Naura Technology Group Co.Ltd(002371) , Shanghai Wanye Enterprises Co.Ltd(600641) , Hangzhou Lion Electronics Co.Ltd(605358) , Anji Microelectronics Technology (Shanghai) Co.Ltd(688019) , Hubei Dinglong Co.Ltd(300054) , Advanced Micro-Fabrication Equipment Inc.China(688012) , National Silicon Industry Group Co.Ltd(688126) , Zhejiang Mtcn Technology Co.Ltd(003026) Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) 、 Shenzhen Yanmade Technology Inc(688312)
Passive parts: Nantong Jianghai Capacitor Co.Ltd(002484) , Zhejiang Jiemei Electronic And Technology Co.Ltd(002859) , Shenzhen Sunlord Electronics Co.Ltd(002138) , Guang Dong Fenghua Advanced Technology (Holding) Co.Ltd(000636) , Chaozhou Three-Circle(Group) Co.Ltd(300408) , Tkd Science And Technology Co.Ltd(603738)
Risk warning: the epidemic situation repeatedly affects the downstream demand; Industrial development is less than expected; Industry competition intensifies
