Refined from Oriental Securities: the Prospect of Optical fingerprint recognition is promising

Comprehensive screen is an irreversible trend of smart phones. with the maturity of technology, the fingerprint recognition scheme under optical screen is about to break out.Qiu Ti Technology, recently announced that it has received the first batch purchase orders and material preparation requirements for off-screen fingerprint recognition modules from a leading Chinese mobile phone brand manufacturer, totaling more than 7 million. As a result, Qiu Ti's share price rose more than 50% a day.

1. Comprehensive screen mobile phones are popular, giving birth to a new generation of fingerprint identification scheme.

The full-screen market has been fully activated. In 2017, global shipments of full-screen smartphones have exceeded 210 million, with a penetration rate of 9%. It is expected that more than 1.4 billion smartphones will be shipped by 2020, and the penetration rate will rapidly rise to 85%.Under the general trend of the comprehensive screen, the off-screen fingerprint recognition can realize the comprehensive integration of the fingerprint identification module, the display screen and the touch screen, can achieve high screen share, and will realize the fingerprint identification operation in any position on the screen.

2. Three recognition schemes under the general trend of comprehensive screen.

Back capacitive fingerprint recognition: XIAOMI MIX and Samsung S8 move fingerprint recognition to the back because of their ultra-high screen ratio, but this design affects the operation experience to some extent.

3D facial recognition: iPhoneX uses 3D facial recognition scheme, but this scheme needs to wake up the screen before use, and the accuracy of recognition is affected by grip angle and distance. In addition, the yield of 3D facial recognition is low, the cost is relatively high, and the cost of iPhoneX is about $20.

Off-screen fingerprint recognition: off-screen fingerprint recognition fully integrates the fingerprint identification module with the display screen and touch screen, achieving a screen share of more than 85%. At present, it has been successfully installed in vivoX20plus, Huawei MateRS, XIAOMI 8 and other models.

3. The fingerprint identification scheme under the optical screen has obvious advantages and bright prospects.

Off-screen fingerprint identification technology mainly includes ultrasonic technology and optical technology.Compared with ultrasonic technologyOptical technologyIt has obvious advantages in cost, maturity, penetration thickness, image quality, resolution, anti-counterfeiting ability, portability, durability and so on.It is expected to become the main technology of off-screen fingerprint recognition scheme.Optical solutions such as Huiding and Xinsi have been used in small quantities on flagship models such as Huawei, XIAOMI and Vivo.

4. Investment suggestions

Comprehensive screen is an irreversible trend of smart phones. With the maturity of technology, the optical fingerprint identification scheme is about to break out. It is recommended to pay attention to optical fingerprint chip and solution manufacturer's head company Huiding Technology, and the leading module manufacturer Qiu Titanium Technology.

The space of optical fingerprint chip is huge.

According to IHS's forecast, there will be at least 9 million smartphones shipped with off-screen fingerprint recognition in 2018 and more than 100m by 2019. If Samsung incorporates off-screen fingerprint recognition technology into GalaxyNote9, shipments will increase to more than 20 million in 18 years. According to the shipments of 9 million and 100 million units in 2018 and 2019, and the unit price is 53 yuan and 40 yuan respectively, the market space of optical fingerprint chip in 2018-19 is 1 billion yuan and 4.1 billion yuan respectively.

According to the data of the first half of 2017, FPC and Huiding are the two big winners in the current fingerprint chip market. Although FPC is a Swedish company, it basically depends on the Chinese market for survival. Huiding, as the only domestic chip factory that can compete with FPC, has a global share of 23%.

A leading module manufacturer

Qiu Ti Technology, recently announced that it has received the first batch purchase orders and material preparation requirements for off-screen fingerprint recognition modules from a leading Chinese mobile phone brand manufacturer, totaling more than 7 million. As a result, Qiu Ti's share price rose more than 50% a day.

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