Group 1 - The report indicates that policy expectations are improving, leading to a rebound in the core stock indices of Shanghai and Shenzhen, despite ongoing trade frictions and technology crackdowns [3][4][44] - The average daily trading volume in the Shanghai and Shenzhen markets is reported at 1.81 trillion, with a slight increase from the previous period's 1.71 trillion, indicating a mild rebound in stock indices [4][38] - The report recommends focusing on the retail trade sector, specifically the stock code 801200.SI, as it has seen increased support from major funds and shows no signs of adjustment [3][4][54] Group 2 - The report highlights that the main stock indices have shown a range of performance over the past five trading days, with the Shanghai Composite Index increasing by 2.02% and the ChiNext Index rising by 2.18% [30][34] - It notes that the net outflow of major funds over the last five trading days was approximately 37.8 billion, indicating a trend of reduced investment in certain indices [43][44] - The report identifies that sectors such as social services and food and beverage have relatively low valuation percentiles, while sectors like construction materials and machinery have higher valuation percentiles [45][49] Group 3 - The report states that the majority of the Shenwan industry sectors are maintaining an upward trend, with the retail trade sector receiving significant capital inflow [54] - It mentions that the recent five trading days saw a concentration of limit-up stocks primarily in the machinery, media, and computer sectors, with the latest trading day showing a focus on retail trade and construction decoration [52][54] - The report emphasizes that the current market sentiment is improving due to anticipated policy adjustments, including significant interest rate cuts and increased fiscal deficits [4][44]

Investment Rating - The report suggests a positive outlook for the electronic industry, indicating a recovery in demand and recommending attention to upstream equipment materials that are relatively independent of the industry's cyclical trends [3][16]. Core Insights - Global semiconductor equipment shipments reached $30.38 billion in Q3 2024, marking a 19% year-on-year increase and a 13% quarter-on-quarter increase [29]. - The global semiconductor sales in October 2024 amounted to $56.88 billion, reflecting a year-on-year growth of 22.1% [30]. - The expected growth for foldable smartphone shipments in 2024 is projected at 13% year-on-year, with potential market decline anticipated in 2025 [32]. Summary by Sections Market Trends - The Shanghai Composite Index rose by 2.02% and the CSI 300 Index increased by 1.48% during the week of December 5 to December 11, 2024, with the electronic industry outperforming the market [2][7]. - The electronic sector's PE valuation increased to approximately 55.74 times [7]. Industry Data - Global smartphone shipments reached 316 million units in Q3 2024, showing a year-on-year growth of 4.01% [2][12]. - In October, China's smartphone shipments were 27.88 million units, reflecting a year-on-year decline of 1.10%, although this was an improvement from a previous decline of 25.70% [15]. Industry Dynamics - TSMC plans to begin mass production of 2nm chips next year, with a current trial yield of over 60% [28]. - The semiconductor equipment market is experiencing growth, with Japan's semiconductor equipment shipments increasing by 33.46% year-on-year in October [30]. Company Developments - Hengxuan Technology announced a cash dividend of 0.76 yuan per share for the first three quarters of 2024 [33].

Industry Investment Rating - The report does not explicitly provide an overall investment rating for the electronics industry [2][3][4] Core Views - The electronics industry is experiencing a recovery in demand, with a focus on upstream equipment and materials that benefit from domestic substitution logic, independent of the industry's cyclical fluctuations [4][19] - Android inventory is expected to gradually normalize, suggesting attention to domestic consumer electronics brands [4][19] - Semiconductor design companies are benefiting from downstream inventory replenishment, making them a key area of focus [4][19] Market Performance - The electronics sector underperformed the broader market, with the Shenwan Electronics Index falling 6.09%, underperforming the Shanghai Composite Index by 4.02 percentage points and the CSI 300 Index by 3.05 percentage points [8] - The sector's PE valuation dropped to approximately 54.93x [8] Industry Data - Global smartphone shipments in Q3 2024 reached 316 million units, up 4.01% YoY [3][15] - China's smartphone shipments in September 2024 were 23.717 million units, down 25.71% YoY [3][18] - Global semiconductor sales in September 2024 were $55.32 billion, up 23.2% YoY [3][18] - Japan's semiconductor equipment shipments in September 2024 increased by 23.40% YoY [3][18] Industry Dynamics - China's consumer-grade XR device sales in Q3 2024 fell 9.2% YoY, with total retail sales of 103,000 units, down 17.9% YoY [2][31] - Middle East smartphone shipments in Q3 2024 grew 2% YoY, reaching 12.2 million units [32] - Latin America smartphone shipments in Q3 2024 increased 10% YoY, reaching 35.1 million units [38] - During the "Double 11" shopping festival, smartphone shipments in China rebounded 26% YoY to 9.5 million units [2][41] Company Dynamics - SMIC reported a 56.4% YoY increase in Q3 2024 net profit, with revenue reaching RMB 15.609 billion, up 32.5% YoY [42] - SMIC's capacity utilization rate improved to 90.4%, with gross margin rising to 20.5% [42] Investment Recommendations - Focus on upstream equipment and materials with domestic substitution potential [4][19] - Pay attention to domestic consumer electronics brands as Android inventory normalizes [4][19] - Semiconductor design companies are recommended due to downstream inventory replenishment [4][19]

Investment Rating - The electronic industry is rated as "stronger than the market" based on the performance of the electronic index relative to the market benchmark index [45]. Core Insights - The global average selling price (ASP) of smartphones is projected to increase by 3% year-on-year in 2024, reaching $365 [35][36]. - The demand for high-end smartphones, priced over $1000, has surged, with sales increasing by 18% year-on-year in the first half of 2024 [36]. - The semiconductor industry is experiencing a recovery, with global sales reaching $55.32 billion in September, marking a 23.2% year-on-year increase [19][28]. Market Trends - The Shanghai Composite Index rose by 1.64% and the CSI 300 Index increased by 2.15% during the week of November 7 to November 13, 2024, with the electronic industry outperforming the market [2][7]. - The electronic index increased by 5.7%, outperforming the Shanghai Composite Index by 4.06 percentage points [2][7]. - In Q3 2024, global smartphone shipments reached 316 million units, reflecting a 4.01% year-on-year growth, although this is a decline from the previous quarter's growth rate of 7.58% [17][19]. Industry Dynamics - Moore Threads has completed its transformation into a joint-stock company and is preparing for an IPO, with a capital increase to 330 million yuan [31][33]. - The retail sales of smart devices in China's living room declined by 3.8% year-on-year in Q3 2024, with total sales amounting to 23.72 billion yuan [34]. - MediaTek reported a 19.4% year-on-year increase in revenue for October 2024, amounting to 51.117 billion New Taiwan dollars [37][38]. Investment Recommendations - The electronic industry is witnessing a sustained recovery in demand, with a recommendation to focus on upstream equipment and materials that are relatively independent of the industry's cyclical trends [20]. - There is an expectation for the inventory of Android devices to gradually normalize, suggesting a focus on domestic consumer electronics brands [20]. - Semiconductor design companies are expected to benefit from downstream inventory replenishment, indicating a potential investment opportunity [20].

Investment Rating - The electronic industry is rated as "stronger than the market" based on the expected performance of the industry index relative to the market benchmark index [22]. Core Insights - The electronic industry is experiencing a continuous recovery in demand, with a recommendation to focus on upstream equipment materials that are relatively independent of the industry's cyclical trends [3][10]. - The global tablet market saw a significant rebound, with a 20.4% year-on-year increase in shipments in Q3 2024, reaching 39.6 million units [18]. - China's internet enterprises with revenues above a certain scale reported a 2.7% year-on-year growth in revenue for the first three quarters of 2024, totaling 1,270.3 billion yuan [17]. Market Trends - The Shanghai Composite Index rose by 3.6% and the CSI 300 Index increased by 3.47% during the week of October 31 to November 6, 2024, with the electronic industry outperforming the broader market [2][4]. - The electronic sector's PE ratio increased to approximately 55.31 times [4]. Industry Data - Global smartphone shipments reached 316 million units in Q3 2024, reflecting a year-on-year growth of 4.01% [8]. - In September 2024, China's smartphone shipments were 23.7 million units, showing a year-on-year decline of 25.71% [9][19]. - Global semiconductor sales in September 2024 amounted to $55.32 billion, marking a 23.2% year-on-year increase [9][14]. Company Dynamics - BOE Technology Group reported a net profit increase of 223.8% year-on-year for Q3 2024, with total revenue reaching 143.73 billion yuan [19].

Investment Rating - The electronic industry is rated as "stronger than the market" based on the expected performance of the industry index relative to the market benchmark index [23]. Core Insights - The electronic equipment industry in China experienced a revenue growth of 7.5% year-on-year from January to September 2024, with total revenue reaching 1,148.64 billion yuan [1][18]. - In the third quarter, smartphone shipments in mainland China increased by 4% year-on-year, totaling 69.1 million units, driven by seasonal demand [2][19]. - Global smartphone shipments reached 316 million units in the third quarter, reflecting a year-on-year growth of 4.01%, although this was a slight decline from the previous quarter's growth rate [9][10]. Market Performance - The Shanghai Composite Index fell by 1.11% and the CSI 300 Index dropped by 2.11% during the week of October 24 to October 30, 2024, while the electronic industry outperformed the broader market with a 1.3% increase in the Shenwan electronic index [2][4]. - The PE ratio for the electronic industry rose to approximately 55.70 times [4]. Industry Dynamics - The global AMOLED smartphone panel shipments grew by 25.3% year-on-year in the third quarter of 2024, indicating strong demand in the market [18]. - The semiconductor industry is showing signs of recovery, with global semiconductor sales reaching 53.12 billion USD in August, marking a 20.6% year-on-year increase [10][18]. - The semiconductor equipment sector also saw growth, with Japan's semiconductor equipment shipments increasing by 23.4% year-on-year in September [10][18]. Company Updates - Wentech Technology reported a turnaround in profits for the third quarter, achieving a net profit of 0.415 billion yuan, compared to a loss in the previous quarter [20]. - Luxshare Precision's net profit grew by 21.88% year-on-year in the third quarter, reaching 3.679 billion yuan [21].

Investment Rating - The electronic industry is experiencing a weak recovery from the demand bottom, with a recommendation to focus on upstream equipment materials that are relatively independent of the industry cycle [2][8]. Core Insights - The report predicts that the share of generative AI smartphones in global shipments will reach 19% in 2024, with an expected shipment volume of 730 million units by 2028, representing a market share of 54% [1][15]. - In the Chinese market, the iPhone 16 has seen a 20% increase in sales compared to the iPhone 15 within the first three weeks of its launch [1][16]. - The electronic industry has shown strong performance, with the Shenwan primary electronic index rising by 10.45%, outperforming the Shanghai Composite Index by 7.34 percentage points [3][4]. Market Trends - Global smartphone shipments reached 316 million units in Q3 2024, reflecting a year-on-year growth of 4.01%, although this is a slight decline from the previous quarter's growth of 7.58% [7][8]. - In August, China's smartphone shipments totaled 21.098 million units, marking a year-on-year increase of 17.7%, but down from 28.3% in July [8]. - Global semiconductor sales in August amounted to $53.12 billion, showing a year-on-year growth of 20.6% [8][14]. Industry Dynamics - The report highlights that the demand for consumer electronics is gradually recovering, driven by a rebound in global economic indicators and a shift towards higher-priced smartphone models [8][15]. - The semiconductor industry is experiencing an upward trend, with improved sales figures, while semiconductor equipment shipments from Japan have shown a slight decrease in growth rate [8][12]. - The report emphasizes the importance of domestic brand consumer electronics companies, which are expected to benefit from inventory normalization in the Android ecosystem [2][8]. Company Updates - Lens Technology reported a net profit growth of 43.74% year-on-year for Q3 2024, with total revenue reaching 46.228 billion yuan, a 36.74% increase [16].

Investment Rating - The report suggests a weak recovery in the electronic industry demand, recommending attention to upstream equipment materials that are relatively independent of the industry cycle and have domestic substitution logic [2][10]. Core Insights - The global server market experienced a year-on-year growth of 35% in Q2, with AI servers accounting for 29% of all servers, leading to a market value of $45.422 billion [20]. - The average price of DRAM is expected to rise by 8-13% due to the increasing proportion of HBM, despite a significant reduction in the growth rate of memory prices anticipated in Q4 [19]. - Global smartphone shipments reached 316 million units in Q3, reflecting a year-on-year growth of 4.01%, although this is a decline from the previous quarter's growth rate of 7.58% [9][10]. - The semiconductor industry is showing signs of recovery, with global semiconductor sales in August reaching $53.12 billion, a year-on-year increase of 20.6% [10]. Market Trends - The electronic industry underperformed compared to the broader market, with the Shenwan electronic index declining by 7.92% during the week of October 10-16 [3]. - The PE valuation for the electronic industry has decreased to approximately 49.92 times [3]. - The smartphone market in China saw a year-on-year growth of 17.7% in August, with shipments totaling 21.098 million units [10]. Company Dynamics - Rockchip expects a profit growth of 339.75% to 365.62% for the first three quarters of 2024, driven by increased demand for AIoT products and rapid market introduction of new products [24].

Investment Rating - The electronic industry is rated as "stronger than the market" based on the performance of the industry index relative to the market benchmark index [24] Core Viewpoints - Samsung Electronics' Q3 performance fell short of expectations, with preliminary operating profit at approximately 9.1 trillion KRW, below the expected 11.5 trillion KRW, and revenue at 79 trillion KRW, compared to the anticipated 81.6 trillion KRW [1][18] - Global semiconductor sales in August 2024 increased by 20.6% year-on-year, reaching 53.1 billion USD, compared to 44 billion USD in August 2023 [21] - The electronic industry showed strong performance, with the Shenwan primary electronic index rising by 8.99%, outperforming the Shanghai Composite Index by 11.32 percentage points [3] Market Trends - The Shanghai Composite Index fell by 2.33% and the CSI 300 Index decreased by 1.54% during the week of October 3 to October 9, 2024, while the electronic industry outperformed the broader market [3] - In Q2 2024, global smartphone shipments reached 285 million units, a year-on-year increase of 7.58% [8] - In August 2024, China's smartphone shipments totaled 21.1 million units, reflecting a year-on-year growth of 17.7% [9] Industry Dynamics - The semiconductor sector is experiencing an upward trend, with August global semiconductor sales showing a 20.6% year-on-year increase, up from 18.7% in July [9][21] - The consumer electronics supply chain has undergone significant destocking, leading to a strong motivation for restocking in the industry [9] - Foxconn's revenue in September 2024 increased by 10.94% year-on-year, reaching 733 billion NTD, marking a significant growth [22]

Investment Rating - The electronic industry is experiencing a weak recovery at the demand bottom, with a focus on upstream equipment materials that are relatively independent of the industry cycle [2][10][24] Core Insights - The high-end TV shipment volume is rapidly increasing, with a projected growth to $30 billion by 2028, following a recovery that began in Q1 2024 [21][22] - The AR/VR headset market in China saw a significant decline of 29.1% in shipments in the first half of 2024, with total shipments at 233,000 units [20] - Global smartphone shipments reached 285 million units in Q2 2024, marking a year-on-year increase of 7.58% [9][10] - Semiconductor sales globally reached $51.32 billion in July 2024, reflecting a year-on-year growth of 18.7% [10][19] Market Trends - The electronic industry underperformed compared to the broader market indices, with the electronic index rising by 4.99%, lagging behind the Shanghai Composite Index by 1.6 percentage points [3][10] - The high-end LCD TV segment saw a 53% increase in shipments in Q2 2024, while OLED TV shipments grew by 2% [21][22] - The global smart vacuum cleaner market experienced a 15.7% year-on-year increase in shipments in Q2 2024, with significant growth driven by product upgrades and increased market share for Chinese manufacturers [23] Company Dynamics - Recent announcements from Zhongwei Company regarding changes in senior management highlight ongoing developments within the semiconductor equipment sector [24]