Summary of the latest developments 1 China’s semiconductor market share will increase to 17% in 2024. According to the SIA report, by 2024, the total sales of Chinese semiconductor enterprises will reach 116 billion US dollars, the market share will rise from 9% in 2020 to 17%, and the compound annual growth rate will reach 30%. At present, a total of 28 semiconductor factories are under construction in China, with an investment of US $26 billion. Under the pressure of the external economic environment, China’s semiconductor industry continues to grow. We believe that semiconductors still maintain a high outlook, and the improvement of the value of semiconductors in electronic equipment will provide growth impetus for the semiconductor industry. After preliminary adjustment, the current valuation of the semiconductor sector has a high cost performance. We continue to be optimistic about the domestic substitution of semiconductors and investment opportunities in high boom tracks such as automobile chips. 2. The sales volume of Apple mobile phone 2021q4 reached the top and is optimistic about the apple industrial chain. According to the latest report of canalys, apple mobile phones accounted for 22% of global smartphone shipments in the fourth quarter of 2021, ranking first in the global smartphone market. Considering the cost performance improvement of iphone13 series and the absence of Huawei’s high-end machines, we are optimistic about the advantages of Apple’s mobile phones in the high-end market. We believe that apple is expected to launch 5giphonese Series in 2022h1 to supplement the blank of low-cost 5g mobile phones, which is expected to further stimulate the replacement demand of 5giphones. It is expected that the shipment of iPhones will reach 245 million in 2022. We continue to be optimistic about the performance of the core targets of Apple’s industrial chain. We suggest paying attention to Luxshare Precision Industry Co.Ltd(002475) (002475. SZ) that quickly cut into the iPhone assembly business and Avary Holding (Shenzhen) Co.Limited(002938) (002938. SZ), Lingyi Itech (Guangdong) Company(002600) (002600. SZ), Shenzhen Desay Battery Technology Co.Ltd(000049) (000049. SZ), Lens Technology Co.Ltd(300433) (300433. SZ), Shenzhen Sunway Communication Co.Ltd(300136) (300136. SZ), etc.
Driven by the strong demand for 5g terminals and automotive electrification, the profit side of the electronics industry will accelerate growth in 2021 and maintain the “recommended” rating. In terms of domestic substitution of semiconductors, it is suggested to pay attention to the field of wafer OEM Semiconductor Manufacturing International Corporation(688981) (0981. HK), Huahong semiconductor (1347. HK), etc; Maxscend Microelectronics Company Limited(300782) (300782. SZ), Wingtech Technology Co.Ltd(600745) (600745. SH), Montage Technology Co.Ltd(688008) (688008. SH) with core competitiveness in the design field; In terms of equipment, it is recommended to pay attention to Naura Technology Group Co.Ltd(002371) (002371. SZ), Advanced Micro-Fabrication Equipment Inc.China(688012) (688012. SH), etc. In terms of automotive electronics, it is recommended to pay attention to intelligent cockpit company Foryou Corporation(002906) (002906. SZ), camera enterprise Shunyu optical technology (2382. HK), Lianchuang Electronic Technology Co.Ltd(002036) (002036. SZ), Ofilm Group Co.Ltd(002456) (002456. SZ) and vehicle specification CIS supplier Will Semiconductor Co.Ltd.Shanghai(603501) (603501. SH). In terms of consumer electronics, it is recommended to pay attention to the leading VR manufacturer Goertek Inc(002241) (002241. SZ) and the core targets of the iPhone industry chain Luxshare Precision Industry Co.Ltd(002475) (002475. SZ), Avary Holding (Shenzhen) Co.Limited(002938) (002938. SZ), etc. In terms of LED, it is suggested to pay attention to the downstream display faucet Leyard Optoelectronic Co.Ltd(300296) (300296. SZ), LED chip faucet Sanan Optoelectronics Co.Ltd(600703) (600703. SH) and China led solid crystal machine faucet Shenzhen Xinyichang Technology Co.Ltd(688383) (688383. SH).
Risk tip: the demand of mobile phone market is lower than expected, and the prosperity of semiconductor is higher than expected.
