The CPPCC session set the strategic position of the digital economy and fully benefited from the electronic intelligent terminal. On May 17, the CPPCC session once again stressed the strategic position of the digital economy in national development and pointed out the future development direction of the digital economy. China’s digital economy will accelerate its development. As a product form of digital economy, electronic intelligent terminal will usher in the sustained and rapid growth of demand in the future. It is suggested to pay attention to key links such as smart cars, VR / AR and smart phones.
Smart cars: changes in the past century have given birth to new opportunities in the market. The transformation of automobile electrification and intelligence will promote the rapid expansion of the automotive electronic market. It is expected that the scale of the automotive electronic information market will exceed US $300 billion by 2030. China’s automotive electronics industry chain will benefit from the rise of Chinese auto enterprises and the rapid penetration of technology companies, ushering in a golden period of development. It is suggested to pay attention to the incremental links brought by the change of automobile architecture, automatic driving and intelligent cockpit, and to Sanan Optoelectronics Co.Ltd(600703) , Gigadevice Semiconductor (Beijing) Inc(603986) , Yachuang electronics, Ingenic Semiconductor Co.Ltd(300223) , etc.
VR / AR: virtual reality illuminates reality, and terminals accelerate penetration. With the normalization of information consumption upgrading and the increasing attention of “meta universe”, VR / AR is expected to become a new generation of consumer terminals; Energy reform accelerates the digital transformation process of traditional industries, and the commercial VR / AR content application market is expected to develop rapidly. The VR / AR industry has entered a period of rapid growth. By 2024, the market scale is expected to increase to 240 billion yuan, and the 20202024cagr is about 54%, of which the growth rate of VR is about 45%; The growth rate of AR is about 66%. VR / AR key devices such as optical lenses, screens and other devices are expected to usher in rapid development. Suggestions Goertek Inc(002241) , Zhejiang Crystal-Optech Co.Ltd(002273) , Zhejiang Lante Optics Co.Ltd(688127) , Shenzhen Everwin Precision Technology Co.Ltd(300115) , etc.
Smart phones: optimistic about the certainty of Apple’s industrial chain growth, 22q1 global smartphone shipments fell 9% year-on-year, and China’s smartphone shipments fell 29% year-on-year. We believe that the main reason is the impact of the rebound of the epidemic on the supply side and demand side, weak innovation and high base in the same period last year. With the gradual reduction of the impact of the epidemic and the improvement of the supply chain, the demand of the mobile phone market has been at the bottom stage. Considering the cost performance improvement of iphone13 series and the absence of Huawei’s high-end machines, as well as the supplement of 5giphonese series to the blank of Apple’s low-priced 5g mobile phones, we believe that Apple mobile phones are still the link with the highest growth certainty in the industrial chain, and the average valuation level of related targets in Apple industrial chain is in the range of historical low. It is suggested to pay attention to Luxshare Precision Industry Co.Ltd(002475) , Avary Holding (Shenzhen) Co.Limited(002938) etc.
Investment suggestion: the digital economy has accelerated the process of “intelligent” transformation of science and technology, promoted the intelligent upgrading of industry, automobile, consumption and other fields, further opened the market space of electronic information industry, and the demand for electronic intelligent terminals will continue to grow rapidly. It is suggested to pay attention to leading enterprises in relevant fields Sanan Optoelectronics Co.Ltd(600703) ( Sanan Optoelectronics Co.Ltd(600703) . SH), Gigadevice Semiconductor (Beijing) Inc(603986) ( Gigadevice Semiconductor (Beijing) Inc(603986) . SH), Yachuang Electronics (301099. SZ), Goertek Inc(002241) ( Goertek Inc(002241) . SZ), etc.
