Market review: this week (5.9-5.13), the electronic sector rose or fell by 5.67%, up or down – 3.7pct relative to the Shanghai and Shenzhen 300 index. Among them, semiconductor equipment, discrete devices, led and semiconductor materials increased by 9.92%, 9.53%, 9.25% and 7.66% respectively.
Intellectualization / Electrification: resume work and production in an orderly manner, and grasp the main line of automotive electronics Investment: we released the automotive electronics monthly report in the early stage, emphasizing the investment opportunities for resume work and production, and also sorted out the new car release plan. Among them, Weilai ES7 is expected to be released in May and delivered in Q3; The Xiaopeng G9 and ideal L9 are expected to be released in June. Intelligence is the core focus of the above high-end models. There are breakthroughs in the number and specification of lidar. For example, the ideal L9 new car will be equipped with two lidars from Suteng juchuang. The lack of core in electrification continues. According to the financial Associated Press, ansenmey insiders revealed that the orders of vehicle IGBT are full and no longer receive orders, which can be seen from the prosperity of power semiconductor.
Oversold white horses: performance is the king, and grasp the certainty in uncertainty: after the outbreak disturbance and deep correction since March, many white horses have reached a highly cost-effective position, and their performance is pessimistic or have fully responded. Taking the mobile phone market as an example, according to the tracking of high-frequency data, the global smartphone sales volume Q2 is expected to be flat month on month, and the subsequent epidemic is controlled. It is worth looking forward to the peak season of the third quarter. In addition, special chips, industrial control market and overseas market are not affected by the epidemic, and the demand is still stable.
Semiconductor equipment: the production line continues to break through, and the equipment certainty is high: the correction range of the equipment sector since the beginning of the year is large, but the performance is still strong. The Q1 revenue of the equipment sector increased by 39%, ranking first in all segments of electronics. On May 12, Huahong and Semiconductor Manufacturing International Corporation(688981) disclosed 1q22 performance, and the revenue exceeded the record high. Looking forward to the second quarter, SMIC / Huahong gave guidance on revenue growth of 1-3% and 3% month on month respectively. The leading performance exceeded the expectation, highlighting the prosperity of equipment demand.
In terms of capex, 1q22 Semiconductor Manufacturing International Corporation(688981) capital expenditure is 869 million US dollars, maintaining the annual capital expenditure guideline of 5 billion US dollars. Huahong capital expenditure is 124 million US dollars, of which 108 million US dollars is used for Huahong Wuxi 12 inch production line. The construction of three new SMIC factories in Beijing / Shenzhen / Lingang has been started. While Huahong Wuxi expands its production, phase II is also under planning. In addition, the bidding for the second production line and fab2 line of China’s semiconductor sector is expected to lead the orderly expansion of the second production line of China’s semiconductor sector, and the second production line of China’s Faxin is expected to lead the long-term production line.
Investment suggestion: the resumption of work and production will be promoted in an orderly manner, and the subsequent release of new models is expected to catalyze the automotive electronics sector. It is suggested to grasp the main line of electrification + Intelligent Investment: IGBT — Zhuzhou Crrc Times Electric Co.Ltd(688187) , Yangzhou Yangjie Electronic Technology Co.Ltd(300373) ; Automotive optics – Ningbo Yong Xin Optics Co.Ltd(603297) , Lianchuang Electronic Technology Co.Ltd(002036) ; The electronic white horse that oversold in the early stage has reached the position where the price performance is prominent. It is pessimistic or has fully responded. It is recommended to pay attention to the oversold leaders Will Semiconductor Co.Ltd.Shanghai(603501) , Gigadevice Semiconductor (Beijing) Inc(603986) , 3Peak Incorporated(688536) , Shanghai Awinic Technology Co.Ltd(688798) and so on, while the long-term investment value of Sg Micro Corp(300661) , Amlogic (Shanghai) Co.Ltd(688099) , Sino Wealth Electronic Ltd(300327) is still prominent; In addition, Huahong and Semiconductor Manufacturing International Corporation(688981) gaocapex continued to expand, and the expansion of production lines was in progress in an orderly manner. The bidding of production lines was expected to lead the market of equipment sector. It is suggested to pay attention to Naura Technology Group Co.Ltd(002371) , tuojing technology, Kingsemi Co.Ltd(688037) , Shanghai Wanye Enterprises Co.Ltd(600641) , shengmei Shanghai, Pnc Process Systems Co.Ltd(603690) , Huahai Qingke (to be listed); Parts leader – Konfoong Materials International Co.Ltd(300666) , fuchuang precision (to be listed).
Risk warning: demand fluctuation caused by peripheral environment; The risk of the epidemic lasting longer than expected.
