① The consumer electronics industry has shown a clear trend of recovery in terminal demand, and Lens Technology's net profit in the first half of the year increased by over 50%. ② With the continuous innovation of major mobile phone brands in AI phones, a new round of replacement cycles may be promoted, and related companies in the industry chain are expected to benefit.
Caixin News, August 25th (Reporter Huang Lu) The consumer electronics industry has shown a clear trend of recovery in terminal demand, and Lens Technology (300433.SZ) achieved a growth of more than 50% in performance in the first half of the year.
Today, Lens Technology released its financial report for the first half of 2024. The company achieved operating revenue of 28.867 billion yuan in the first half of the year, a year-on-year increase of 43.07%; achieved a net profit attributable to the mother of 0.861 billion yuan, a year-on-year increase of 55.38%.
In the interim report, Lens Technology stated that during the reporting period, the company accelerated the vertical integration of the industrial chain and developed and produced smart phones, payment terminals, PCs and other intelligent devices in ODM or OEM mode, which drove the growth of the company's sales scale, promoted the increase of market share of structural components and modules, and stimulated the growth of the company's sales scale.
The financial report shows that the revenue of Lens Technology's smart phone and computer business sector increased by 48.87% in the first half of this year compared to the same period last year, and the gross margin was basically the same as the same period last year. The company revealed that it has established long-term deep strategic cooperative relationships with leading consumer electronics brands both domestically and internationally, and has the ability to rapidly develop and mass produce glass, metal, sapphires, ceramics, plastics, carbon fiber, leather, and other new materials for multiple generations and models of high-end smartphones.
As a cyclical industry, the consumer electronics industry began to recover and grow in the second half of 2023 and is now in a stage of sustained recovery and growth. IDC data shows that global smartphone shipments in the second quarter of 2024 increased by 6.5% compared to the same period last year, reaching 0.2854 billion units, showing a trend of continuous growth for four consecutive quarters.
According to statistics, the performance of many companies in the consumer electronics industry chain has improved significantly in the mid-year reports this year. For example, Luxshare Precision (002475.SZ) and Goertek Inc. (002241.SZ) have both released financial reports. Among them, Luxshare Precision's net profit in the first half of the year increased by 23.89% year-on-year, and the company also expects its net profit in the third quarter to increase by 14.39%-26.61% year-on-year. Luxshare Precision believes that the development of AI technology has accelerated the innovation of consumer electronics terminals, the development of global data centers towards higher computing power, and the further acceleration of the market and production capacity layout of smart automobiles globally; the company's consumer electronics, communication, automotive, and other businesses have ushered in greater growth potential. Goertek Inc.'s net profit in the first half of the year increased by 190% year-on-year.
With the continuous innovation of major mobile phone brands in AI phones, a new round of replacement cycles may be promoted. According to the latest forecast by Omdia, the total shipments of AI phones in 2024 are expected to be 0.119 billion units, accounting for 10% of total shipments. According to industry insiders, major consumer electronics manufacturers will release new products in September, including Apple, Meta, Huawei, and other major consumer electronics manufacturers. AI will first be implemented in mature consumer electronic products such as mobile phones, driving the increase in volume and price of related products, and related companies in the industry chain are expected to benefit.
It is understood that Lens Technology has built a one-stop service platform that covers from raw materials to components, modules, and complete machine assembly. Previously, Lens Technology stated that the company will strengthen the development of new fields and new businesses, actively embrace the industrial trend of smart terminal products upgrading to AI, vigorously explore new customers and products in the AI field, improve the utilization rate of the company's existing production capacity, and further enrich the product structure.
According to data from the China Association of Automobile Manufacturers, in the first half of 2024, the sales volume of automobiles reached 14.047 million units, a year-on-year increase of 6.1%, and the sales volume of new energy vehicles reached 4.944 million units, a year-on-year increase of 32%. Benefiting from the continued high prosperity of the new energy vehicle industry, Lens Technology's smart automobile and smart cockpit business sectors saw a year-on-year revenue growth of 19.01% in the first half of this year.
Currently, Lens Technology focuses on the research and development of smart cockpits, production of central control screens, dashboards, displays, B-pillars, C-pillars, charging stations, structural components of power batteries, and other products. It has established long-term strategic cooperation with major customers in the automotive industry. At the same time, it collaborates with customers to innovate, optimize, and validate new large-size automotive glass products such as side windows, windshields, and panoramic sunroofs.