Bank of China International released a research report saying that the global CIS scale is expected to reach a peak of growth in 2024. With the recovery in demand for downstream terminals such as smartphones, the global CIS industry market size will show a steady growth trend.
The Zhitong Finance App learned that Bank of China International released a research report saying that the global CIS scale is expected to reach a peak of growth in 2024. As demand for downstream terminals such as smartphones recovers, the global CIS industry market size will show a steady growth trend. Considering that Sony and Samsung are gradually reducing some CIS shares in the Chinese market, and domestic CIS manufacturers are also introducing high-specification CIS products, the replacement rate of China's CIS domestic production is expected to increase further. It is recommended to pay attention to Vail shares (603501.SH), Stevie (688213.SH), and Gekowei (688728.SH).
According to Qunzhi Consulting data, the global CIS market size in 2023 is about US$19 billion, YoY +2%. In 2023, the global macroeconomy showed a trend of slowing growth, intertwining inflation and financial risks. Combined with the adverse factors of high CIS inventories and urgent need to be digested, the global CIS market size growth rate was low. With the improvement of CIS technology and the continuous emergence of various application scenarios, the demand for high-performance CIS also continues to grow. Qunzhi Consulting expects the global CIS market to reach US$21.4 billion in 2024, YoY +13%. Domestic manufacturers are gradually upgrading CIS technology and replacing domestic products.
According to Yole data, Sony accounts for 42% of the global CIS market share in 2022, Samsung accounts for 19%, and Howell accounts for 11%. According to Gimei Network, Sony and Samsung began reducing some CIS shares in the Chinese market at the end of 2022; Howell and Steway have successively launched CIS products for high-end flagship aircraft such as the OV50H, SC580XS, and SC550XS since 2023, and have received good feedback from the market.
Domestic CIS manufacturers are gradually promoting domestic replacement in the high-end CIS field. Domestic CIS manufacturers' revenue increased significantly year-on-year in 2024Q1. Vail's 2024Q1 revenue was about 5.64 billion yuan, YoY +30%. Starway's 2024Q1 revenue was about 840 million yuan, YoY +84%. Gekowei's 2024Q1 revenue was about 1.29 billion yuan, YoY +51%. The operating income of the three major domestic CIS manufacturers, Weil Co., Ltd., Steway, and Gekowei, showed a significant year-on-year increase in revenue in 2024Q1.
Risk factors: The recovery in industry demand fell short of expectations. The competitive landscape in the market deteriorated. Terminal application innovation falls short of expectations. Prices of raw materials have risen.