Core view
The valuation of consumer electronics is at a low level. It is suggested to pay attention to glory recovery, folding screen penetration and VR / AR industry chain. In March, the consumer electronics sector fell by 21.04%, underperforming the electronics industry by 6.06pct. As of the end of March, the overall PE (TTM) of consumer electronics was 26.47x, which was 5.3% since 2016. Despite the current repeated covid-19 epidemic in China and the pressure on mobile phone shipment data, compared with 2018, when the market is pessimistic about the consistency of the growth space of consumer electronics volume and price, we believe that the “electronic +” trend represented by aiot and smart cars is still. In the 3C sector, we continue to recommend new machines with frequent catalysis in the recent period. In 2022, we have the potential of performance exceeding expectations and are in the glory, folding screen VR / AR industrial chain, related companies include Dbg Technology Co.Ltd(300735) , Jiangsu Gian Technology Co.Ltd(300709) , Goertek Inc(002241) , Luxshare Precision Industry Co.Ltd(002475) , Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) , Wingtech Technology Co.Ltd(600745) .
Global smartphone market: according to SA data, 97 million smartphones (yoy-10.2%, mom-11.7%) were shipped in the global market in February, and Samsung shipped 24.6 million (yoy-6.8%) in the top 5, with a share of 25.3% (YoY + 0.9pct); Apple shipped 17.2 million units (YoY 1.2%), accounting for 17.7% (YoY + 2.0pct); Xiaomi shipped 12.1 million units (YoY – 14.8%), with a share of 12.4% (YoY – 0.7pct); Oppo shipped 8.1 million units (YoY – 32.5%), with a share of 8.3% (YoY – 2.7pct); Vivo shipped 7.7 million units (YoY – 30.0%), with a share of 7.9% (YoY – 2.2pct); In addition, 6 million units (yoy17.6%) were shipped by voice transmission, 4 million units (YoY 81.8%) by glory, and 1.3 million units (YoY – 62.9%) by Huawei. Smartphone market in China: according to the China Academy of communications and communications, in February, the shipment volume of mobile phones in China was 14.864 million (YoY – 31.7%, Mom – 55.0%), including 12.783 million domestic brands (YoY – 34.7%, mom-50.2%), with a market share of 86.0% (yoy – 3.9pct); Overseas brands shipped 2.081 million units (yoy-5.1%, Mom – 71.8%), with a market share of 14.0% (YoY + 3.9pct). According to cinno data, in February, among China’s top 5 brands, oppo sold 4 million units (YoY – 45.7%), glory sold 3.9 million units (YoY 141.6%), Apple sold 3.8 million units (YoY – 4.0%), vivo sold 3.8 million units (YoY – 38.6%), and Xiaomi sold 3.6 million units (YoY – 20.1%).
VR / AR: Steam’s monthly live VR users accounted for 2.13% in March, and oculus’s share decreased slightly month on month. According to valve data, the total proportion of monthly live VR head display users on steam platform in March 2022 was 2.13%, an increase of 0.01pct month on month. In terms of market share, oculus brand share of meta in March was 66.60% (mom -0.58pct, yoy + 8.53pct), of which Quest 2 share was 47.35% (mom + 0.26pct, yoy + 23.10pct); The share of valve brand is 15.09% (mom + 0.66pct, yoy-1.28pct); The share of HTC brand is 10.72% (mom -0.15pct, yoy -5.79pct); The share of Chinese brand Pico is 0.64% (mom + 0.12pct, yoy + 0.53pct)
Smart wear: 4q21 global TWS headset / smart watch shipments increased by 20.6% / 8.0% year-on-year. According to canalys data, 4q21 shipped 103 million TWS headphones worldwide, with a year-on-year increase of 20.6% and a month on month increase of 43.3%; Among them, Apple’s airpods shipped 36.56 million units, with a year-on-year increase of 11.9% and a month on month increase of 133.1%; 4q21 global shipments of smart watches were 28.62 million, up 8.0% year-on-year and 61.9% month on month; Among them, apple watch shipments were 16.54 million, a year-on-year increase of 14.0% and a month on month increase of 125%. Monthly performance tracking: in February, the shipment volume and revenue of optical manufacturers were under pressure, and the revenue of PCB manufacturers increased rapidly.
Taiwan stocks: the revenue of PCB manufacturers of Taiwan stocks in February was NT $62.836 billion (YoY 27.4%, Mom – 13.3%); The revenue of Taiwan stock connector manufacturers was NT $9.697 billion (YoY 6.3%, Mom – 31.5%); The revenue of optical manufacturers in Taiwan shares was NT $4.765 billion (YoY – 11.8%, Mom – 31.6%); The revenue of Taiwan stock battery manufacturers is NT $9.545 billion (YoY 3.0%, Mom – 0.8%); The revenue of Taiwan stock PC manufacturers was NT $876.64 billion (yoy18.3%, Mom – 5.5%).
Hong Kong stocks: in February, the shipment volume of Shunyu optical technology mobile phone lens was 109 million (YoY – 15.9%, mom-17.1%), and the shipment volume of camera module was 49.716 million (YoY – 24.6%, Mom – 0.6%); In February, the shipment volume of Qiuti technology camera module was 26.208 million (YoY – 17.8%, Mom – 45.1%), and the shipment volume of fingerprint identification module was 5.755 million (YoY – 34.2%, Mom – 45.7%).
A shares: February Avary Holding (Shenzhen) Co.Limited(002938) revenue was 2.058 billion yuan (YoY 30.9%, Mom – 6.0%), and the total revenue from January to February was 4.247 billion yuan (YoY 13.6%). The Universal Scientific Industrial(Shanghai)Co.Ltd(601231) revenue in February was 4.137 billion yuan (YoY 28.9%, mom-15.7%), and the total revenue from January to February was 9.045 billion yuan (YoY 28.5%).
Key recommended combination
1) 3C leading enterprises with leading global production layout and global management capability, including Wingtech Technology Co.Ltd(600745) , Goertek Inc(002241) , Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) , Luxshare Precision Industry Co.Ltd(002475) , Suzhou Etron Technologies Co.Ltd(603380) , Shenzhen Transsion Holdings Co.Ltd(688036) , Guangzhou Shiyuan Electronic Technology Company Limited(002841) , etc;
2) Jiangsu Gian Technology Co.Ltd(300709) , Kunshan Kersen Science & Technology Co.Ltd(603626) , Wuhu Token Sciences Co.Ltd(300088) , etc. benefiting from the rapid penetration of folding screen;
4) Goertek Inc(002241) , Hongli Zhihui Group Co.Ltd(300219) etc. benefiting from the rapid development of metauniverse and VR / ar.
Risk warning: the epidemic situation repeatedly affects the downstream demand; Industrial development is less than expected; Industry competition intensifies.
