① Why is the P series attracting attention in the market? ② What is the current state of global semiconductor sales?
Financial Services Association, April 17 (Editor Hu Jiarong) Benefiting from the popularity of P70 phones, Hong Kong semiconductor stocks strengthened. As of press release, Shanghai Fudan (01385.HK), SMIC (00981.HK), and Huahong Semiconductor (01347.HK) were up 5.03%, 1.57%, and 1.26% respectively.
Note: Semiconductor performance
In terms of news, the popularity of P70 phones has continued to rise recently. For example, on the morning of April 16, Yu Chengdong, executive director of Huawei and CEO of Terminal BG, said that the “Pura70” can be considered a P70, and there will be good news in two days.
According to an April 15 report, the P70 series phones are expected to be launched before the end of the month and may be on the shelves at any time. Currently, blind orders are being accepted. A staff member said that the prototype will probably arrive at the store next week. Staff at several stores said that quite a few customers have already made reservations, and it is “difficult to say” whether the current reservation can rank in the first batch. Regarding the specific price and configuration, several store personnel said they will have to wait for the official announcement.
In fact, the release of new Huawei models often drives up the stock prices of related concept stocks. Take the Mate60 as an example. After the phone went on sale on August 29, most of the Hong Kong semiconductor stocks showed a rise. For example, SMIC (00981.HK) and Huahong Semiconductor (01347.HK) both closed sharply by more than 7%.
In response, the agency recently pointed out that the sale of the Mate 60 series last year is seen as the beginning of Huawei's return to the mobile phone market; looking ahead to April, the release of the Huawei P70 series is highly anticipated. The release of the Huawei P70 is imminent, and related innovations are expected to drive a new round of opportunities.
Why is the P series attracting attention in the market?
Huatai Securities recently pointed out that the Mate series, P series, Nova series, and Enjoy series are the four major series launched by Huawei. Among them, the P series is the sub-flagship model that focuses on photography and fashion, and is targeted at young consumers, with annual shipments peaking at 48,039 million units (2019). They predict that in 2024, P series shipments may reach around 16 million units, returning to the level between 2020 and 2021. Looking at the whole year, Huawei's dual flagship P70 and Mate 70 series may contribute about half of the shipments of Huawei smartphones, driving overall shipments to exceed 2021 levels.
Global semiconductor sales have been growing for 4 consecutive months
In addition to the news of P70, the recovery in semiconductor sales and sales boosted the trend of related individual stocks. Total global semiconductor sales reached US$46.2 billion in February 2024, up 16.3% year on year. This is the best result of four consecutive months of growth since May 2022.
Tianfeng Securities analysts Pan Wei and Luo Yiyang said in the April 12 report that AI is expected to be the main driving force for this round of upward cycle. Industry inventories are expected to return to normal levels in the first half of the year, and some sectors are also expected to prioritize inventory replenishment.