Core Viewpoint - The Apple supply chain is entering a significant upgrade cycle in 2025-2026, with attention on new model inventory, specification upgrades, and stock performance [1]. Group 1: New Model Inventory - The inventory for the iPhone 17 series in the second half of 2025 is slightly above 90 million units, remaining stable compared to last year's 90-95 million units [2]. - Market concerns about a year-on-year inventory decline of 5%-10% have eased due to reduced tariff pressures on Apple products [3]. - Key suppliers like Largan and Zhen Ding reported stable sales in July, confirming the trend of steady inventory [4]. Group 2: Specification Upgrades - The iPhone 17 series will introduce a "slim" version to replace the Plus model, featuring a titanium shell, a single rear camera, and increased use of flexible printed circuit boards (FPC) [10]. - The Pro series will see upgrades including a periscope lens and front camera enhancements to 48 million and 24 million pixels, respectively, along with a 50%+ increase in cover glass average selling price [10]. - Benefiting suppliers include Cowell (camera modules), Lens Tech (cover glass), Zhen Ding (PCB/FPC), Largan (lenses), and AAC (acoustics/thermal) [11]. Group 3: Stock Performance - Historically, supply chain stock prices tend to rise before new product launches and may retreat post-launch due to profit-taking; however, during upgrade cycles, stock prices recover more quickly [16]. - Since May, key suppliers' stock prices have averaged a 13% increase [16]. - The performance post-launch will be influenced by Apple's pricing strategy and consumer feedback, which will affect fourth-quarter demand and stock performance [17]. Group 4: Stock Recommendations - Lens Technology - H: Initiated coverage with a "Buy" rating and a target price of 26 HKD [19]. - Lens Technology - A: Initiated coverage with a "Buy" rating and a target price of 29 CNY [19]. - AAC Technologies: Upgraded to "Buy" with a target price of 57 HKD [19]. - BYD Electronics: Downgraded to "Neutral" with a target price of 42 HKD [19]. - Cowell: Rated "Buy" with a target price of 35 HKD [19]. - Zhen Ding Technology: Rated "Buy" with a target price of 185 TWD [19].

Core Insights - The Apple-related stocks in Hong Kong have seen a rise, with notable increases in companies such as AAC Technologies up over 4% and BYD Electronics up 2.5% [1] - Bank of America has indicated that the inventory for the iPhone 17 series is expected to exceed 90 million units in the second half of 2025, remaining consistent with last year's forecast of 90-95 million units [1] - Concerns regarding a year-on-year decline in inventory of 5%-10% have diminished due to easing tariff pressures on Apple products [1] - The Apple supply chain is entering a significant upgrade cycle for 2025-2026, with attention on new model inventory, specification upgrades, and stock performance [1] Company Performance - AAC Technologies: Latest price at 45.580, with a rise of 4.25% [1] - BYD Electronics: Latest price at 38.160, with a rise of 2.53% [1] - Sunny Optical Technology: Latest price at 81.100, with a rise of 2.33% [1] - Hon Teng Technology: Latest price at 5.020, with a rise of 2.03% [1] - Tongda Group: Latest price at 0.116, with a rise of 1.75% [1] - Lens Technology: Latest price at 23.980, with a rise of 1.44% [1] - Q Tech: Latest price at 15.100, with a rise of 0.80% [1] - East Joy Long Holdings: Latest price at 2.630, with a rise of 0.77% [1]

Core Viewpoint - Bank of America indicates that Apple's supply chain is entering a significant upgrade cycle in 2025-2026, with attention on new model inventory, specification upgrades, and stock performance [1] Group 1: New Model Inventory - The inventory for the iPhone 17 series in the second half of 2025 is slightly above 90 million units, remaining stable compared to last year's 90-95 million units [2] - Market concerns about a year-on-year decline in inventory of 5%-10% have eased due to reduced tariff pressures on Apple products [2] - Key suppliers like Largan and Zhen Ding reported flat sales in July, supporting the trend of stable inventory [2] Group 2: Specification Upgrades - The iPhone 17 series will introduce a "slim" version, replacing the Plus model, featuring a titanium shell and a single rear camera, with increased use of flexible printed circuit boards (FPC) [10] - The Pro series will see upgrades including a periscope lens and front camera enhancements to 48 million and 24 million pixels, respectively, along with a 50%+ increase in cover glass average selling price [10] - Benefiting suppliers include Cowell (camera modules), Lens Tech (cover glass), Zhen Ding (PCB/FPC), Largan (lenses), and AAC (acoustics/thermal) [10][14] Group 3: Stock Performance - Historically, supply chain stock prices tend to rise before new product launches and may pull back post-launch due to profit-taking; however, during upgrade cycles, stock prices recover more quickly [15] - Since May, key suppliers' stock prices have averaged a 13% increase [15] - Future stock performance will depend on Apple's pricing strategy and consumer feedback, which will influence fourth-quarter demand [15] Group 4: Stock Recommendations - Lens Technology - H: Initiated coverage with a "Buy" rating and a target price of 26 HKD [17] - Lens Technology - A: Initiated coverage with a "Buy" rating and a target price of 29 CNY [17] - AAC Technologies: Upgraded to "Buy" with a target price of 57 HKD [17] - BYD Electronics: Downgraded to "Neutral" with a target price of 42 HKD [17] - Cowell: "Buy" rating with a target price of 35 HKD [17] - Zhen Ding: "Buy" rating with a target price of 185 TWD [17]