Everbright Securities released a research report that the Hang Seng Technology Index fell by 52.4% from the beginning of 21 to May 25, 22. Looking forward to the second half of 22, in view of: 1) the marginal relaxation of the platform economic regulatory policy, the emotional recovery is expected to drive the valuation to return to fundamentals; 2) the Fed shrinks the schedule plan to land, and the market has the strongest expectation for the Fed to tighten. Market risk appetite is expected to improve gradually. 3) with the gradual relief of the domestic epidemic, logistics, supply chain, and terminal consumption will gradually recover, and the expected improvement is expected to drive profits upwards. the agency believes that the value of Hang Seng technology allocation has been highlighted and focuses on subdividing the growth track.

Analysis of each subdivided growth track

1) Consumer electronics: focus on customer expansion and new downstream expansion opportunities such as automotive optics and AR/VR. Under the background of the decline in smartphone sales and the slowdown in specification upgrading, the structural growth opportunities for upstream supply chain manufacturers mainly come from customer expansion, as well as smart cars, VR/AR and other emerging areas. Focus on the growth thread that has the ability to expand customers or product lines in two dimensions to drive deterministic and sustained growth.

2) Semiconductors: downstream demand differentiation, focusing on high-growth segments. 22 years in the semiconductor market downstream consumer electronics, PC, communications and other areas of prosperity has declined, especially mobile phones, low-end consumer goods are currently high inventory, wafer foundry industry is facing downstream customer destocking pressure; automotive, industrial and other semiconductor demand is still strong, downstream power semiconductor boom is expected to continue, especially high-end power devices such as high-voltage Mos and IGBT demand is still strong, it is recommended to focus on this high-growth segment.

3) Communications: the performance growth of operators in the late stage of 5G construction is enhanced, and there are opportunities for value revaluation. In the 5G era, the operator industry shows a certain growth, mainly relying on the marginal improvement of C-end business and B-end innovative business to open up new market space. At the same time, the company's profitability will continue to improve with the decline of CAPEX. With the quarterly verification of the performance improvement trend of operators, it is expected to drive the revaluation of the sector.

4) computer: under the theme of reducing costs and increasing efficiency, the demand for SaaS is high, which may usher in a new round of rising opportunities to be digested by valuation. SaaS software is a high-growth branch, 22 years SaaS plate will continue to cloud computing and cost reduction and efficiency theme as an important main line, the organization is expected to rely on performance growth to complete valuation digestion, overlay industry marginal improvement, some stocks to achieve smooth transformation to drive a new round of rising opportunities.

5) Internet: the opportunity to regulate the Internet plate under new business type still exists. The end of the policy has arrived, and the direction of next year's prosperity will be laid out ahead of schedule. It is suggested to pay attention to three main lines: in the industrial Internet era, To-B business is expected to continue to grow; the game industry is fine, going out to sea has become the second growth curve; and video is still the development direction of the industry.

Risk analysis:Repeated effects of the epidemic; intelligent cars, slow penetration of VR/AR; lower-than-expected demand for semiconductors; loss of top customers of SaaS; increased competition for Internet content platforms.