Downstream applications are more important: focus on the recovery of middle and downstream industries such as automotive electronics, VraR, military industry, industry & Internet of things, folding machines, etc
In the past, we mainly classified consumer electronics, semiconductors, LEDs, passive components, panels, PCBs, security and other sectors. In 2022, we believe that downstream applications are more important. There will be segmentation opportunities in all sectors, which will drive individual stocks or small sectors with applications, and the overall opportunities of the sector are small.
Automotive electronics: focus on connector related Ningbo Boway Alloy Material Co.Ltd(601137) , Electric Connector Technology Co.Ltd(300679) , Suzhou Recodeal Interconnect System Co.Ltd(688800) etc; PCB related Shenzhen Kinwong Electronic Co.Ltd(603228) , Olympic Circuit Technology Co.Ltd(603920) , Avary Holding (Shenzhen) Co.Limited(002938) ; Semiconductor related Starpower Semiconductor Ltd(603290) , Wingtech Technology Co.Ltd(600745) , Zhuzhou Crrc Times Electric Co.Ltd(688187) , East micro semiconductor, nano core micro, etc; EMS related Wuhan Lincontrol Automotive Electronics Co.Ltd(688667) ; Components related Xiamen Faratronic Co.Ltd(600563) , Shenzhen Sunlord Electronics Co.Ltd(002138) ; Automotive intelligence related Neusoft Corporation(600718) , Hunan Oil Pump Co.Ltd(603319) , etc.
VraR: Zhejiang Crystal-Optech Co.Ltd(002273) , Goertek Inc(002241) , Lingyi Itech (Guangdong) Company(002600) , Luxshare Precision Industry Co.Ltd(002475) , Lens Technology Co.Ltd(300433) and other valuation repair opportunities for the original mobile phone supply chain to enter Apple VR.
Military industry: FPGA related Shanghai Fudan Microelectronics Group Co.Ltd(688385) , Unigroup Guoxin Microelectronics Co.Ltd(002049) ; Components related to Avic Jonhon Optronic Technology Co.Ltd(002179) , Kunshan Guoli Electronic Technology Co.Ltd(688103) , Zhuzhou Hongda Electronics Corp.Ltd(300726) , Beijing Yuanliu Hongyuan Electronic Technology Co.Ltd(603267) , China Zhenhua (Group) Science & Technology Co.Ltd(000733) , etc.
Industry & Internet of things and other midstream and downstream recovery: semiconductor related Sg Micro Corp(300661) , Shanghai Anlogic Infotech Co.Ltd(688107) , Semiconductor Manufacturing International Corporation(688981) , Huahong semiconductor, etc; Equipment related Han’S Laser Technology Industry Group Co.Ltd(002008) , Naura Technology Group Co.Ltd(002371) , Shanghai Gentech Co.Ltd(688596) ; Components related Hunan Aihua Group Co.Ltd(603989) , Nantong Jianghai Capacitor Co.Ltd(002484) , Tkd Science And Technology Co.Ltd(603738) ; Security tob related Zhejiang Dahua Technology Co.Ltd(002236) , Hangzhou Hikvision Digital Technology Co.Ltd(002415) ; Downstream related companies Shenzhen Transsion Holdings Co.Ltd(688036) , Anker Innovations Technology Co.Ltd(300866) , Internet value-added services related vskit, scooper, bloomplay, etc.
Folding machine: Shenzhen Txd Technology Co.Ltd(002845) , Wuhu Token Sciences Co.Ltd(300088) , Jiangsu Gian Technology Co.Ltd(300709) , Shenzhen Everwin Precision Technology Co.Ltd(300115) , BOE, TCL, etc.
Risk tips: overestimated value continues to digest, consumer demand continues to decline, innovation is delayed, listed companies increase undervalued value, and semiconductor cycle attributes
