The Zhitong Finance App learned that Huachuang Securities released a research report saying that compared to VR and MR, AR glasses are more interactive and lighter in weight, and are more suitable for everyday wear for a long time. Currently, the development of the AR market mainly depends on further penetration of the C-side and collaborative development of the content side and hardware side. Furthermore, terminal sales prices are gradually declining, and AR is expected to be implemented on a large scale in the consumer market. Recently, leading manufacturers have been actively deploying “AI+AR” and are launching AR glasses that incorporate AI technology, which may greatly improve the user experience. It is recommended to focus on targets related to the AR industry chain: Goertek (002241.SZ), Lixun Precision (002475.SZ), Dongshan Precision (002384.SZ), etc.

The main views of Huacheng Securities are as follows:

Reduced price & improved user experience & rich ecosystem, AR devices can be expected to grow

AR (Augmented Reality) superimposes virtual information data into the real world based on technology such as sensors and computer vision, and is presented and perceived by users through terminals such as mobile phones and headsets, and mainly provides real visual effects through optical perspective (OST). Judging from the product form, near-eye AR glasses are the main development direction. Among them, the trend of integrated AR layout is initially visible, and it may take a dominant position in place of split AR headsets. In recent years, the price of AR devices has gradually declined. Furthermore, the wearing experience has improved markedly, and the increase in the number of participating manufacturers has also driven rapid development of the content side, which is expected to strengthen the ultimate expectations of AR headsets.

Optical and display solutions are gradually iterated, optical waveguide & micro display provide excellent visual effects

The optical display system of AR terminal equipment consists of optical components and a display screen. In terms of optical solutions, Birdbath is currently the mainstream solution due to its high cost performance and strong mass production, but there are still problems such as low light transmittance and image distortion. In contrast, the optical waveguide scheme effectively solves the contradiction between field of view angle and size, and has a high light transmittance. It is currently the best performing AR optical solution. Optical waveguide solutions can be further subdivided into two mainstream solutions: array optical waveguide and diffractive optical waveguide. Among them, array optical waveguide imaging effect is excellent, but yield is low and cost; diffraction optical waveguide has better productivity and yield, but template design is difficult and dispersion problems need to be overcome. Currently, the final route has not been determined in the optical waveguide scheme, and further technical iteration is still needed.

In terms of display solutions, LCD and LCoS are mature solutions, but they all face the problems of low contrast and high energy consumption. Both Micro OLED and Micro LED are self-illuminating display technologies that do not require a backlight module, can be made lighter and thinner, and have better display effects and resolution. However, since Micro OLEDs use organic materials, their service life is short (thousands of hours), and screen burning may occur. MicroLED enables each pixel to emit light independently and is the most effective display solution.

With the collaborative development of the content side and hardware side, AR is expected to be implemented on a large scale in the consumer market

The B-side led the early development of AR market applications. Beginning in 2022, C-side shipments have surpassed B-side shipments. In the long run, as technology continues to be iterated, the B-side will become more specialized, and the C-side scenario may be further segmented, and the rapid growth and scale of the AR market will still depend on the promotion and explosion of the C-side market. Compared to C-side applications, B-side customers pay more attention to whether the product can meet the core requirements of improving efficiency. They are not sensitive to weight, wearing experience, content ecology, and price, and the expansion of the C-side market requires iteration and upgrading in many areas.

From the content side, the market development potential of hardware products needs to be reflected through content. Meta's launch of the open source operating system Meta Horizon OS is expected to enrich the content ecosystem; in addition, connecting to AI can not only increase the interactive capabilities of AR devices, but also drastically reduce content creation costs through AI. Recently, leading manufacturers have been actively deploying “AI+AR” and are launching AR glasses that incorporate AI technology, which may greatly improve the user experience. From the hardware side, the overall weight of AR devices has been declining in recent years, and the wearing comfort and design have also continued to improve. Their optical and display effects are still accelerating the iterative process, providing an excellent user experience. Furthermore, in terms of price, with the popularity of AR devices, terminal manufacturers are gradually lowering sales prices, which is expected to accelerate penetration into the C-end market.

It is recommended to focus on targets related to the AR industry chain: Goertek (002241.SZ), Lixun Precision (002475.SZ), Dongshan Precision (002384.SZ), Crystal Optoelectronics (002273.SZ), Skyworth Digital (000810.SZ), Haopeng Technology (001283.SZ), Desai Battery (000049.SZ), Zijian Electronics (301121.SZ), Zhuhai Guanyu (688772.SH), Ruisheng Technology (02018), Longqi Technology (603341.SH) Changying Precision (300115.SZ), Lingyi Intelligent Manufacturing (002600.SZ), Zhongshi Technology (300684.SZ), Huaqin Technology (603296.SH), Shunyu Optical Technology (02382), Lante Optics (688127.SH), Hengxuan Technology (688608.SH), Jiahe Intelligence (300793.SZ), Tianjian (301383.SZ), Yidao Information (001314.SZ), Doctor Glasses (). 300622.SH

Risk warning: Product penetration falls short of expectations, consumer electronics demand falls short of expectations.