18luck

On March 26, 2024, Bank of China Securities (601696) released a research report on the specialized equipment industry, which pointed out that the consumer electronics industry may welcome recovery and pay attention to the equipment increment brought by new technologies.

The specific content of the report is as follows:

After a long period of declining sales, consumer electronics products such as smartphones and PCs are nearing the end of inventory depletion in the industry chain. In the future, under the dual stimulation of "passive replacement" demand and "active replacement" demand stimulated by new products such as AIPC, the prosperity of the consumer electronics industry is expected to continue to recover, and related 3C equipment is expected to fully benefit. In addition, the rapid introduction of new materials, products, and technologies such as titanium alloys, XR devices, and foldable screens has also brought new development opportunities for related equipment manufacturers, giving the industry a stronger market rating. The key points supporting the rating are the rise and fall of consumer electronics terminal demand, and multidimensional demand driving the industry's recovery. After a long period of declining sales, consumer electronics products such as smartphones and PCs are nearing the end of inventory depletion in the industry chain, and the growth rate of shipments has bottomed out and rebounded, showing signs of marginal improvement. Looking ahead to the future, firstly, both smartphones and PCs are approaching the critical point of the replacement cycle, and the demand for "passive replacement" is expected to recover; Secondly, the launch of smartphones with stronger AI capabilities and AIPCs may stimulate the demand for "active device replacement"; Finally, driven by hardware iteration and mature content, XR devices are expected to open up the consumer market and usher in new development opportunities. Therefore, under the influence of multiple factors, it is expected to drive the sustained recovery of the consumer electronics industry. There are many types of 3C equipment involved, and the demand is influenced by downstream product cycles and has a certain periodicity. The production process of 3C products is complex, with many procedures and strong customization attributes, so there are many specialized equipment. According to the statistics of Zhiyan Consulting, as of 2022, the global market size of 3C automation equipment is about 50.379 billion US dollars, of which China, as the world's largest 3C product manufacturing country, accounts for more than 60%. At present, the main technologies of intelligent manufacturing equipment have become mature, and the main factors driving the growth of downstream customer equipment procurement demand are the expansion of production capacity brought about by the strong market demand for new products, as well as the demand for equipment updates and replacements brought about by significant process changes in new products. With the recovery of the consumer electronics industry, 3C equipment is expected to usher in a new round of upward demand. The accelerated introduction of titanium alloy brings new requirements for forming and processing technology. Due to the lightweight and high-strength characteristics of titanium alloy, it can meet the multiple needs of consumer electronics products for material weight reduction, durability, wear resistance, etc. Since 2023, mobile phone manufacturers including Apple, Samsung, Xiaomi, etc. have successively released titanium alloy related products. In the future, with technological progress and cost reduction, the penetration rate of titanium alloy in the consumer electronics field is expected to rapidly increase. Due to the characteristics of low thermal conductivity, high chemical activity, low deformation coefficient, and large elastic recovery of titanium metal, it is difficult to form and process titanium alloys. Currently, there are two main processing methods for titanium alloys: CNC machining and 3D printing. With the promotion of titanium alloy applications, the demand for related cutting equipment, tool consumables, polishing equipment, and 3D printing equipment will increase. The rapid development of XR devices has brought new opportunities for related equipment. After experiencing several waves, the XR device industry has not been truly popularized due to the limited number of content developers and application scenarios. The release of Apple MR products has proposed many innovations in software and hardware, especially through investment, mergers and acquisitions, and patent research and development to layout the content ecosystem, which is expected to break through industry bottlenecks and drive the XR industry into a new stage of development. The display screen and optical module are the focal points of XR device innovation, and the continuous iteration of Micro LED and Pancake optical film sets may give rise to new opportunities for related mechanical equipment. Investment advice: It is recommended to pay attention to the recovery of the consumer electronics industry and the related equipment investment opportunities brought by new products and technologies. 1) For the recovery of the consumer electronics industry, we recommend Bozhong Metalworking and Kuaike Intelligence (603203), and we suggest focusing on oat technology, Saiteng Co., Ltd. (603283), Jintuo Co., Ltd. (300400), Kaige Precision Machinery (301338), Bojie Co., Ltd. (002975), Kerui Technology (002957), Zhixin Precision (301512) Tianzhun Technology, etc; 2) The demand increase brought by new products such as AIPC and XR is recommended. We recommend companies such as Jept, Chunqiu Electronics (603890), and Zhilifang (301312). We suggest paying attention to companies such as Yingli Corporation (300956), Rongqi Technology (301360), Zhaowei Electromechanical (003021), Liande Equipment (300545), and Huaxingyuan Chuang; 3) The demand for forming and processing equipment and consumables brought about by the increase in titanium alloy penetration rate is recommended for Genesis (300083) and Dingtai High tech (301377). It is suggested to pay attention to Tonglian Precision, Wald, Golden Sun (300606), Yuhuan CNC (002903), Huashu High tech, Bolite, Jingyan Technology (300709), etc. The main risks facing the rating are that the macroeconomic recovery is not as expected; The market acceptance of new products or technologies is lower than expected; The risk of technological iteration; The risk of intensified market competition.