This week’s market: according to wind data, this week (4.18-4.22), Shanghai Composite Index ( Ping An Bank Co.Ltd(000001) . SH) closed at 308692 points (- 3.87%), and CITIC electronics index (ci005025. WI) closed at 639668 points (- 3.64%). As of April 22, 2022, the Shanghai stock index has decreased by – 15.02% compared with the beginning of the year; Compared with the beginning of the year, CITIC electronics index fell by – 33.93%, and the excess return of CITIC electronics index compared with Shanghai index was -18.92 PCT This week, the security sector rose by 2.76%.
Industry observation and highlights: IC insights expects the wafer production capacity to increase by 8.7% in 22 years; 22q1 global smartphone shipments decline investment strategy: we believe that at present, the semiconductor manufacturing end presents a situation of “differentiation between the two sides”, the capacity utilization of wafer OEM end remains high, and the packaging and testing OEM end slows down; Benefiting from the continuous construction of China’s production line, the equipment side still has full orders and sufficient growth momentum; After the sample delivery verification and small batch shipment in the first two years, the material end company will usher in a medium and long-term rapid growth stage; In terms of IC design, we focus on the targets with obvious “volume increase” logic on the demand side or prominent localization substitution space / process in 22 years, avoid the sub areas with no obvious “volume increase” logic but possible high risk of price decline, and recommend to identify and avoid chip design companies that are unable to transfer relevant pressure on the finished chip end due to the increase of OEM cost; In the past 22 years, the consumer electronics sector has focused on the consumption upgrading led by innovation, superimposed the theme investment opportunities with the popularity of meta universe, and focused on two main lines: 1) hardware investment opportunities under the theme of meta universe; 2) Automotive electronic segments such as on-board lens, lidar and automotive connector benefiting from the development of electric intelligent vehicles; PCB sector, focusing on the reversal of the dilemma on the cost side and the opportunities brought by the demand side server, mini led and automobile high view.
It is recommended to pay attention to:
① semiconductor equipment / materials / OEM: materials section, it is recommended to pay attention to Hangzhou Lion Electronics Co.Ltd(605358) , Anji Microelectronics Technology (Shanghai) Co.Ltd(688019) ; For the equipment sector, it is recommended to pay attention to Advanced Micro-Fabrication Equipment Inc.China(688012) , Naura Technology Group Co.Ltd(002371) , Beijing Huafeng Test & Control Technology Co.Ltd(688200) , Hangzhou Chang Chuan Technology Co.Ltd(300604) , shengmei Shanghai;
② head IC Design / IDM (analog, power devices, MCU, storage, optics, RF and some advanced process logic ICs, etc.): 3Peak Incorporated(688536) , Sg Micro Corp(300661) , Verisilicon Microelectronics (Shanghai) Co.Ltd(688521) -u, Unigroup Guoxin Microelectronics Co.Ltd(002049) , Will Semiconductor Co.Ltd.Shanghai(603501) , Galaxycore Inc(688728) ., Gigadevice Semiconductor (Beijing) Inc(603986) , Maxscend Microelectronics Company Limited(300782) , Wingtech Technology Co.Ltd(600745) , Starpower Semiconductor Ltd(603290) , China Resources Microelectronics Limited(688396) , Hangzhou Silan Microelectronics Co.Ltd(600460) , Rockchip Electronics Co.Ltd(603893) ., Bestechnic (Shanghai) Co.Ltd(688608) etc.
③ consumer electronics: Goertek Inc(002241) , Ningbo Yong Xin Optics Co.Ltd(603297) , Shunyu optical technology, Byd Company Limited(002594) electronics, Luxshare Precision Industry Co.Ltd(002475) etc.
④. LED / panel industry chain and passive components: Sanan Optoelectronics Co.Ltd(600703) , Boe Technology Group Co.Ltd(000725) , Tcl Technology Group Corporation(000100) , Shenzhen Sunlord Electronics Co.Ltd(002138) , Chaozhou Three-Circle(Group) Co.Ltd(300408) , etc.
Risk tips: the progress of global 5g is less than expected, the demand of downstream terminals is less than expected, the covid-19 pneumonia epidemic worsens, and the trade friction between China and the United States intensifies.
