FIBOCOM(SZ:300638) GF SECURITIES·2024-06-12 01:31Investment Rating - The report indicates a positive outlook for the company, suggesting that the upcoming AI PC trend and the replacement cycle will drive new growth for the business [1]. Core Viewpoints - The AI PC trend is expected to shift the focus of the PC industry ecosystem from applications to user-centric designs, enhancing user engagement and control [1]. - The mainstream replacement cycle for PCs is approximately 3-5 years, with a significant peak in 2021. The report notes that after a continuous decline in global PC shipments, a turning point was reached in Q4 2023, with a year-on-year growth of 0.3% [1]. - The company is positioned as a leading supplier in the laptop module sector and is anticipated to benefit from the dual support of AI PC and the replacement cycle, potentially achieving a new breakthrough in its PC business [1]. - High-performance modules are identified as crucial for edge computing, showcasing the company's significant advantages in vertical integration within the industry chain [1]. Summary by Sections AI PC Trend and Replacement Cycle - The AI PC concept, introduced by Intel in September 2023, is set to fundamentally reshape the PC experience by enhancing personal productivity and creativity through a combination of hardware and AI applications [45]. - The report highlights that the AI PC will not only serve as a hardware device but will also integrate AI models and applications, providing a comprehensive user experience [45]. - The anticipated replacement cycle for PCs is expected to accelerate in 2024-2025, driven by ongoing inventory digestion by suppliers and the unique value proposition of AI PCs [54]. Company Positioning and Market Dynamics - The company has established strong partnerships with major PC manufacturers like Lenovo and HP, positioning itself to benefit from increased shipment volumes in the future [54]. - The report emphasizes the company's first-mover advantage in the laptop market, aided by strategic investments from Intel, which have facilitated its transformation and market penetration [79]. Edge Computing and Module Development - The report discusses the rapid growth of computing power and its impact on edge computing demand, highlighting the need for local processing capabilities to handle data efficiently [58]. - The company is actively developing high-performance modules that leverage Qualcomm's cutting-edge technology, which are essential for various applications in edge computing [64]. - The report notes that the company’s edge computing modules are well-suited for a range of industries, including robotics and smart devices, enhancing their market appeal [66].