Zhitong Financial APP learned that China Galaxy Securities released a research report saying that at present, the electronics industry is in the stage of slowing demand and continuous pressure on upstream companies, and the industry growth expectations and valuation level fluctuate violently by internal and external markets, but as the downstream depot phase continues to advance, the demand side of the electronics industry is gradually recovering, the profit side is expected to stabilize, the industry valuation level is low, and there is more room for improvement. Maintain the recommended rating. Recommended attention: Tianyue Advanced (688234.SH), Bauhinia Technology (688072.SH), Hua'an Xin Chuang (300928.SZ), Jingfang A (000725.SZ), 002920.SZ (Desai Xiwei), 002241.SZ shares, etc.
The main points of China Galaxy Securities are as follows:
Virtual reality is blessed by policy
On November 1, the Ministry of Industry and Information Technology, the Ministry of Education, the Ministry of Culture and Tourism, the State Administration of Radio and Television and the State Administration of Sports issued the Action Plan for the Integration of Virtual reality and Industrial applications (2022-2026). It is proposed to comprehensively enhance the industrial supply capacity of virtual reality key devices, terminal peripherals, business operation platforms, content production tools and dedicated information infrastructure. By 2026, the overall scale of China's virtual reality industry (including related hardware, software, applications, etc.) will exceed 350 billion yuan, sell more than 25 million virtual reality terminals, and cultivate 100 backbone enterprises with strong innovation ability and industry influence. create 10 agglomeration areas with regional influence and lead the ecological development of virtual reality, and build 10 industrial public service platforms. The virtual reality industry has been blessed by policies, and it is expected to accelerate its development in the future.
Chip leading companies' performance is under pressure, downstream demand differentiation
Qualcomm Inc expects revenue in the first quarter of 2023 to be 92-10 billion US dollars, which is lower than market expectations; Intel Corp's revenue and net profit in the third quarter of 2022 declined compared with the same period last year, while lowering the full-year performance guidance; TI said in a conference call that except for the automobile market, chip demand in most end-market markets will decline in the fourth quarter compared with the previous quarter. On the domestic side, Zhaoyi Innovation Investor Relations activity record sheet mentioned that the industrial market is affected by the macro-economy and is now in the stage of destocking, and the demand for new energy market is very strong. Looking forward to the fourth quarter and next year, the demand from the new energy market (electric vehicles + photovoltaic power generation + energy storage) is expected to remain high.
The short-term quantity of lidar is less than expected, and the long-term development prospect is broad.
In the first three quarters, the overall volume pace of the lidar industry has been delayed compared with previous expectations. On November 2, the Ministry of Industry and Information Technology, together with the Ministry of Public Security, issued the notice on the pilot work of Intelligent Network access and Road access (draft for soliciting opinions). The pilot contents include: on the basis of the vehicle road test and demonstration application of the National Intelligent Network Association. The Ministry of Industry and Information Technology and the Ministry of Public Security select qualified road motor vehicle production enterprises and intelligent network connected automobile products with self-driving function with mass production conditions to carry out access pilot. For the intelligent network-connected automobile products that have passed the access pilot, pilot road access will be carried out within the limited public road areas of the pilot cities. The "notice" puts forward clear requirements for the scope of self-driving functions carried by intelligent network-connected vehicles, that is, it refers to the level 3 driving automation (conditional automatic driving) and level 4 driving automation (highly automatic driving) functions defined in the national standard "Automobile driving Automation Classification" (GB/T 40429-2021). With the gradual upgrading of autopilot from L2 to L3, the demand for lidar is expected to continue to increase. On November 2, Hesai Technology officially released FT120, a pure solid-state close-up blind lidar for ADAS front-loaded production vehicles, which has obtained more than 1 million units from a number of mainframe factories and is expected to be mass-produced in the second half of 2023. Suteng Juchuang signed a cooperation agreement with FAW Changchun at the end of September, reached a cooperation agreement on the regulation-level mass production research and development of intelligent solid-state lidar vehicles, and announced a fixed-point cooperation with Chery in November, and a number of new models will be mass-produced in the second half of 2023. It is expected that the pace of lidar volume will accelerate next year.
Recommended concerns are as follows:
The third generation semiconductor and power semiconductor leader: Tianyue Advanced, East Micro Semiconductor (688261.SH), Sida Semiconductor (603290.SH), 600460.SH (600460.SH), time Electric (688187.SH), New Jieneng (605111.SH)
Autonomous control will be the core demand of the semiconductor industry in the future. It is suggested that we should pay attention to the semiconductor equipment and equipment parts industry: Tuojing Technology, Jiangfeng Electronics (300666.SZ), Fortune Precision (688409.SH).
On-board display is an important window for human-computer interaction of intelligent vehicles. Opportunities in the field of on-board display are recommended to pay attention to Hua an Xinchuang, 002906.SZ,
Panel leading companies Beijing Oriental A, TCL Technology (000100.SZ), Deep Tianma (000050.SZ), etc.; car gauge storage manufacturers Zhaoyi Innovation (603986.SH), East Core Co., Ltd. (688110.SH)
Module and system integration enterprise Desai Xiwei
VR/AR industrial chain, it is recommended to pay attention to the global VR assembly leading enterprises Goyle shares and the layout of MR structural parts and other business of Changying Precision (300115.SZ), Optical Film Sanli Spectrum (002876.SZ), etc.; lidar Changguang Huaxin (688048.SH), Yongxin Optics (603297.SH), Lante Optics (688127.SH), etc.; Automotive Electronics suggests paying attention to Dongshan Precision (002384.SZ), Shenghong Technology (300476.SZ).
Risk Tips:The downstream demand is lower than expected, and the risk of domestic manufacturers' technological breakthroughs is not as expected.