Concept tracking | Apple WWDC is about to begin, AR/VR industry chain races to hit the limit, how do institutions see it? (Attached concept stocks)

Zhitong Finance APP learned that on May 31st, influenced by the upcoming Apple Worldwide Developers Conference, companies related to the AR/VR industry chain performed well. As of the close of trading... $Goertek Inc. (002241.SZ)$ 、 $Shenzhen Everwin Precision Technology (300115.SZ)$ 、 $Zhejiang Crystal-optech (002273.SZ)$ 、 $Shenzhen Zhaowei Machinery & Electronics (003021.SZ)$ Several stocks are expected to hit their daily limit. Zhongtai Securities believes that Apple is likely to disclose information about its AR/VR-related products at this conference. As one of the most important innovative products in the consumer electronics industry, Apple's participation will undoubtedly greatly promote the industry's development and initiate a new cycle of innovation in the consumer electronics industry.

On the early morning of May 25th, Apple announced that the 2022 Apple Worldwide Developers Conference (WWDC) will be held from June 7th to June 11th, and the theme keynote speech on the first day will start at 1 am Beijing time on June 7th. WWDC22 activities will be open to over 30 million Apple developers worldwide for free, including the keynote speech and the Platforms State of the Union, where developers will further share what they will learn and experience.

It's worth mentioning that at the 2017 WWDC, Apple unveiled multiple new computer products, including MacBook, MacBook Pro, iMac, iMac Pro, as well as iPad Pro and HomePod. It is reported that Apple has not released any new hardware at the WWDC for two consecutive years. The latest one was the release of Mac Pro and Pro Display XDR at the 2019 WWDC.

Analyst Guo Mingji from Tianfeng Securities stated today that it will take some time for Apple's AR/MR headsets to enter the mass production stage, so he believes that Apple will not introduce AR/MR headsets and the rumored corresponding operating system reality OS at this year's WWDC developer conference. Previously, Guo Mingji had mentioned that Apple's AR/MR headsets will be launched in the second quarter of 2022.

CICC believes that companies related to the AR/VR industry chain have performed well today due to the following catalysts: 1) Apple will hold the WWDC developer conference on June 6th, and is expected to release AR/VR-related software products, which will increase market attention; 2) Brands such as PSVR and Meta plan to release new VR products in the second half of 2022, with clearer stock levels and timelines, which will bring increased certainty to related companies; 3) The short-term demand for VR is strong, and AR/VR is still the highest-growth track in the consumer electronics downstream, with continuous growth in shipments.

Looking at the whole year, companies such as Meta, Sony, and Apple are expected to release new VR headsets, and continue to upgrade their features, promoting the implementation of more remote interactive applications. In addition, Meta will launch blockbuster games such as GTA and Population this year, which is expected to continue to attract new users, achieve a positive cycle of software and hardware ecosystem, and break through the shipment ceiling. Bullish on AR/VR's potential to become the next generation of mobile computing power platform, enabling human-machine interaction through brain-computer interfaces, and promoting AR/VR shipments to reach billions. According to estimates, the AR/VR hardware market is expected to reach a market size of tens of billions of dollars by 2025, with a compound annual growth rate of over 80%, driving sustained high growth in related companies in the industry chain.

Zhongtai Securities believes that the upcoming Apple WWDC will drive a surge in the sector. With the upcoming Apple WWDC, it is expected to release AR/VR product information: Apple announced that the 2022 WWDC will be held from June 7th to June 11th, and the industry expects that Apple will disclose information about its AR/VR-related products at this conference, which has driven the stocks of related companies to rise today. As one of the most important innovative products in the consumer electronics industry, Apple's participation will undoubtedly greatly promote the industry's development and initiate a new cycle of innovation in the consumer electronics industry.

Frequent consumption stimulus policies have emerged, and the demand for smartphones is expected to recover: With various local consumption stimulus policies being introduced one after another, combined with the important window of new phone releases in June and July, the demand side is expected to gradually improve. In addition, the channel inventory pressure from February to April is gradually being alleviated, coupled with the arrival of the 618 shopping festival and other holidays, downstream demand is expected to replenish inventory and drive sales growth. Pessimistic expectations are fully reflected, and the improvement in demand will effectively boost market confidence: Since the beginning of the year, affected by weak downstream demand, the consumer electronics sector has experienced a significant pullback, with leading manufacturers generally seeing declines of more than 30%, and market expectations for smartphone sales also remain very pessimistic. As downstream demand picks up and is stimulated by various positive news, market confidence will be effectively boosted, driving the sector to rebound.

Related concept stocks:

GoerTek Inc (002241.SZ): Currently, the company has an absolute advantage in the global VR manufacturing sector and will further focus on the development of optics, with a solid layout in the AR field.

Sugon Optoelectronic (002273.SZ): The company's main products, such as optical low-pass filters (OLPF), infrared cut-off filters and components (IRCF), and narrow-bandpass filters (NBPF), are among the top in global production and sales. 3D depth imaging, optical components, and enhanced displays (AR) have been applied in globally renowned consumer electronics.

Lens Technology (300343.SZ): The company is currently involved in industrializing 24 million optical lenses and 6 million imaging module projects, with plans to achieve a production capacity of 50 million lenses and imaging modules each by the end of 2025.

$SUNNY OPTICAL (02382.HK)$ : The company specializes in the design, research and development, production, and sales of optical and optoelectronic related products.