Continuous policy stimulus, the consumer electronics industry is expected to drive demand for consumer electronics with the trade-in of old products, and we remain bullish on subsequent policy efforts to drive the renewal of consumer electronics.
According to the Futubull Finance app, Tianfeng Securities released research reports stating that due to domestic demand stimulation and product cycle resonance, there is a strong focus on the consumer electronics industry chain. This includes continuous policy stimulus, the potential for the trade-in of old consumer electronics products to drive the release of consumer electronics demand, and we are optimistic about the subsequent policy efforts to drive the renewal of consumer electronics; continuous software and hardware innovation, the start of a new product cycle for Apple, and we are optimistic about the valuation and performance boost for Apple's supply chain manufacturers in the new product cycle. It is recommended to focus on the consumer electronics industry chain.
Tianfeng Securities' main points are as follows:
Continuous policy stimulus, the consumer electronics industry is expected to drive demand for consumer electronics with the trade-in of old products.
Jiangsu Province recently launched a special subsidy program for 3C digital products (11/27-12/31, targeting products such as mobile phones, tablets, digital cameras, smart watches, learning devices, translation devices, and wireless Bluetooth headsets, providing a government subsidy of 15% of the product's fill price, up to 1500 yuan). The market feedback over the first weekend was positive, and we are optimistic about the subsequent policy efforts to drive the renewal of consumer electronics.
Guizhou fully implements the relevant national policy requirements, focusing on providing subsidies to consumers in areas such as automobiles, household appliances, home furnishings, and electric bicycles, and has upgraded and adjusted the content of activities multiple times to expand the scope of subsidies and increase the subsidy amount. Efforts are being made to establish an effective mechanism for 'making discarding easier and replacing more willing', effectively promoting more high-quality and durable consumer goods to enter residents' lives. In the future, Guizhou will include more high-quality consumer goods such as domestically produced mobile phones and tablets in the supported trade-in range.
Continuous software and hardware innovation catalyzes the start of a new product cycle for Apple.
iOS 18.2 will be released in December, with more Apple Intelligence upgrades driving AI experience innovation, including the introduction of Genmoji, Image Playground applications, enhanced writing tool functionality, iPhone 16 visual intelligent features, ChatGPT integration, etc. Apple's continuous software and hardware innovation is expected to catalyze (with anticipated updates in January 2025 with iOS 18.3, the cost-effective version of Apple's AI phone iPhone SE4 in Spring 2025, iOS 18.4 update in March 2025, WWDC conference in June 2025, iPhone 17 release in September 2025), continuously bullish on the new product cycle for Apple's supply chain manufacturers' valuations and performance boost.
Investment suggestion: Focus on the consumer electronics industry chain, pay attention to:
Apple supply chain: Luxshare Precision Industry (002475.SZ), Lingyi Itech (002600.SZ), Lens Technology (300433.SZ), Innovation New Material Technology (600361.SH) (covered by the metal material group and machinery group), Foxconn Industrial Internet (601138.SH), Avary Holding (002938.SZ), Suzhou Dongshan Precision Manufacturing (002384.SZ), Zhuhai Crown Yee Optical (688772.SH) (covered by the electronic and new energy group), BYD Electronic (00285), Cowell (01415), Shenzhen Sunway Communication (300136.SZ), Sunwoda Electronic (300207.SZ) (covered by the electronic and new energy group), Zhejiang Crystal-Optech (002273.SZ), JCET Group Co., Ltd. (600584.SH), Zhejiang Lante Optics (688127.SH), Jones Tech PLC (300684.SZ);
Android supply chain: Electric Connector Technology (300679.SZ), Huaqin Technology (603296.SH), Wingtech Technology (600745.SH), Longqi Technology (603341.SH), Dongguan Aohai Technology (002993.SZ), Sunny Optical (02382), Suzhou Tianmai (301626.SZ), Lens Tech (301489.SZ);
Consumer electronics brand manufacturers: Shenzhen Transsion Holdings Co., Ltd. (688036.SH), Edifier Technology (002351.SZ), Anker Innovations Technology (300866.SZ) (covered by the home appliance and communication group), Xiaomi Corporation-W (01810), Green Connection Technology (301606.SZ).
Risk warning: Consumer electronics innovation not meeting expectations, consumer electronics demand lower than expected, increased industry competition, geopolitical risks.