Core Viewpoint - The report from China Merchants Securities indicates that Apple's iPhone 17 series has received strong pre-order interest, with over 20 million reservations on JD.com, significantly higher than the iPhone 16 series. The iPhone 17's competitive pricing and enhanced features are expected to drive sales beyond expectations [1][2]. iPhone 17 - The iPhone 17 has a pre-order volume of over 2 million on JD.com, nearly ten times that of the iPhone 16. The delivery time for all configurations in China is 3-4 weeks, and in the U.S., most configurations are 2-3 weeks, which is an improvement of about 1-2 weeks compared to last year [1]. - The iPhone 17 features upgrades such as a 120Hz refresh rate, ultra-wide angle, front camera enhancements, and faster charging, while also being priced $100 lower, improving its value proposition in the mid-range market [1]. iPhone 17 Pro - The iPhone 17 Pro has a delivery time of 3-4 weeks in China and 2-3 weeks in the U.S. (except for the deep blue color), which is also an improvement of 1-2 weeks compared to last year. The Pro series is expected to maintain stable demand due to significant design changes and performance upgrades [2]. iPhone Air - The iPhone Air has not yet launched in China, but in the U.S., the delivery time is approximately 1 week for some colors and 2-3 weeks for others. Key features include a super-thin design, titanium exterior, self-developed modem, and dual video recording capabilities [2]. - The performance of the iPhone Air in China and other regions will be closely monitored after its global release [2]. AirPods and Apple Watch - AirPods Pro 3 has a delivery time of 1 week in China and 2-3 weeks in the U.S. The Apple Watch Series 11 has similar delivery times, with the Ultra 3 taking 2-3 weeks for most configurations. The sales trends for these products are in line with expectations, with notable features such as AI translation and health monitoring capabilities [2]. Investment Recommendations - The report recommends focusing on companies that will benefit from Apple's AI innovations, including Luxshare Precision (002475.SZ) and GoerTek (01415). Other companies of interest include Pengding Holdings (002938.SZ), Dongshan Precision (002384.SZ), BYD Electronics (00285), and several others in the supply chain [3].

Core Viewpoint - The sales trend for the new iPhone models is better than market expectations, indicating a potential investment opportunity in the Apple supply chain as a three-year hardware innovation cycle begins [3]. Group 1: iPhone 17 Sales and Features - The pre-order volume for iPhone 17 on JD.com exceeded 2 million, nearly 10 times that of iPhone 16, with delivery times in China at 3-4 weeks, which is an improvement of 1-2 weeks compared to last year [1]. - The iPhone 17 features significant upgrades such as a 120Hz refresh rate, ultra-wide angle, front camera enhancements, and faster charging, while also being priced $100 lower, enhancing its competitiveness in the mid-range market [1]. - The iPhone 17 Pro has a similar delivery time of 3-4 weeks in China, with a longer wait for the Pro Max, indicating stable demand due to its design overhaul and performance improvements [1][2]. Group 2: iPhone Air and Accessories - The iPhone Air has not yet launched in China, but in the US, delivery times range from 1 week to 2-3 weeks depending on the color, with highlights including a thin titanium design and dual video recording capabilities [2]. - AirPods Pro 3 and Apple Watch Series 11 are also seeing favorable delivery times, aligning with sales expectations, showcasing features like AI translation and health monitoring [2]. Group 3: Investment Recommendations - The company suggests capitalizing on the undervalued Apple supply chain, as the iPhone 17's high cost-performance ratio is expected to drive sales beyond expectations, while the Pro models show stable demand [3]. - The upcoming three-year hardware innovation cycle and advancements in AI capabilities are anticipated to further boost sales, with specific stocks recommended for investment [3].

Investment Rating - The report maintains a positive outlook on Apple for the next three years, emphasizing long-term investment opportunities in the supply chain [4]. Core Insights - The report highlights that the recent product launch aligns with expectations, with no price increases for the iPhone 17 Pro series and new audio and wearable products. The iPhone 17 offers improved cost-performance, showcasing innovations in design, optics, cooling, fast charging, eSIM, and self-developed chips. The supply chain is expected to benefit from these innovations, particularly with the anticipated integration of AI functionalities [4]. Summary by Sections iPhone 17 Pro - Key features include a major design overhaul, enhanced cooling, and upgraded long-focus capabilities. The new model features a brushed aluminum body and a ceramic back, with a 20-fold improvement in cooling performance and a triple 48MP camera system [1][10][11]. iPhone Air - The iPhone Air is noted for its ultra-thin design, titanium frame, and self-developed modem and wireless chips. It supports eSIM and features a dual-camera system for simultaneous video recording [2][19][21]. iPhone 17 - The iPhone 17 introduces a 120Hz display, improved ultra-wide and front cameras, and enhanced battery life. It supports 30 hours of video playback and features a new 40W fast charger [3][27][29]. AirPods Pro 3 - The AirPods Pro 3 includes AI translation capabilities and heart rate monitoring. It boasts a significant improvement in active noise cancellation and battery life [3][34][35]. Apple Watch Series 11 and Ultra 3 - The Apple Watch Series 11 features high blood pressure alerts, enhanced battery life, and 5G connectivity. The Ultra 3 model includes satellite communication capabilities and a longer battery life [3][40][45]. Investment Recommendations - The report continues to recommend long-term investments in quality companies within the Apple supply chain, highlighting firms like Luxshare Precision and GoerTek as primary beneficiaries of Apple's innovations [4].

Market Overview - The Hong Kong stock market experienced a collective pullback, with the Hang Seng Index down 0.43% to 26,086.32 points, the Tech Index down 0.24% to 5,888.77 points, and the National Enterprises Index down 0.73% to 9,260.25 points [1][2]. Semiconductor Sector - The semiconductor sector led the market with notable gains, including InnoCare (02577.HK) up 9.25%, SMIC (00981.HK) up 4.97%, and Shanghai Fudan (01385.HK) up 5.37% [4][5]. - TSMC reported a revenue of NT$335.77 billion for August 2025, marking a year-on-year increase of 33.8% and a quarter-on-quarter increase of 3.9%, boosting market expectations for AI infrastructure development [6]. Telecommunications Equipment - Telecommunications equipment stocks also saw strong performance, with ZTE (00763.HK) up 7.50%, and China Tower (00788.HK) up 3.19% [8]. Nonferrous Metals - Nonferrous metal stocks were buoyed by interest rate cut expectations, with Jinli Permanent Magnet (06680.HK) up 6.04% and Luoyang Molybdenum (03993.HK) up 4.79% [9][10]. - Minsheng Securities noted that industrial metal supply remains constrained while domestic demand remains resilient, suggesting a potential upward trend in metal prices [11]. Cement Sector - The cement sector benefited from price increases, with Huaxin Cement (06655.HK) up 4.94% and China National Building Material (03323.HK) up 3.38% [12][13]. - Research indicated that cement prices in the Pearl River Delta region are expected to rebound due to seasonal demand and reduced supply [14]. Pharmaceutical Sector - Pharmaceutical stocks faced downward pressure, with Tigermed (03347.HK) down 9.36% and Zai Lab (06160.HK) down 5.87% [15][16]. - Market rumors about potential restrictions on innovative drugs from China to the U.S. have not significantly altered long-term expectations for these companies [17][18]. New Consumption Sector - New consumption stocks showed weakness, with Maogeping (01318.HK) down 4.73% and Laopu Gold (06181.HK) down 3.51% [19][20]. - Despite the current underperformance, institutions remain optimistic about the growth potential of new consumption companies, driven by changing consumer behaviors among the Z generation [21]. Individual Stock Movements - China Gold International (02099.HK) rose 2.70% amid increasing expectations for U.S. interest rate cuts [22]. - Tenghong Precision (06088.HK) surged 12.79% following the announcement of new Apple products, including new iPhones and AirPods [23][24].

Group 1 - The stock of Tonghong Precision (06088) increased by over 10%, reaching a rise of 11.34% to HKD 4.33, with a trading volume of HKD 893 million [1] - Apple held its fall product launch event today, introducing four new iPhones, AirPods Pro 3, and three 5G versions of the Apple Watch [1] - Tonghong Precision is the fourth largest connector manufacturer globally, with products spanning consumer electronics, mobile devices, communication infrastructure, automotive, and industrial sectors, serving major tech companies including Apple [1] Group 2 - Longjiang Securities reported that the company continues to deepen its presence in the electric vehicle and consumer electronics sectors while actively embracing the AI era [1] - Products such as optical modules, connectors, and liquid cooling are expected to lead in demand driven by artificial intelligence and data centers [1] - Through global expansion and excellent manufacturing capabilities, Tonghong Precision is transforming the immense potential of AI into solid growth momentum, with sustained profit growth anticipated [1] Group 3 - Revenue projections for Tonghong Precision from 2025 to 2027 are USD 4,915 million, USD 5,558 million, and USD 6,274 million, respectively, while net profit attributable to shareholders is expected to be USD 177 million, USD 218 million, and USD 267 million [1]

Core Viewpoint - The company reported a strong performance in the first half of 2025, with revenue of 124.5 billion and a year-on-year growth of 20.18%, while net profit reached 6.644 billion, growing by 23.13% [2][14]. Group 1: Financial Performance - The company's revenue for the first half of 2025 was 1245 billion, with a net profit of 66.44 billion, both exceeding initial expectations [2][14]. - The second quarter alone saw revenue of 627 billion, a year-on-year increase of 22.5% [2]. - The gross profit margin for the first half of 2025 was 11.61%, slightly down by 0.1 percentage points due to currency fluctuations and increased production costs [19][20]. Group 2: Business Segments - The consumer electronics segment generated 978 billion in revenue, growing by 14.3%, with strong performance from Apple-related products [3][4]. - The communications business experienced significant growth, with revenue of 111 billion, up 48.7%, driven by AI computing capabilities [5][6]. - The automotive segment saw remarkable growth, with revenue of 87 billion, increasing by 82.1%, supported by new projects and successful acquisitions [6][10]. Group 3: Future Outlook - The company anticipates a net profit range of 108.90 to 113.45 billion for the first three quarters of 2025, corresponding to a growth rate of 20-25% [8]. - The long-term growth drivers remain clear, with expectations for continued expansion in consumer electronics, communications, and automotive sectors [8][12]. - The company is well-positioned to leverage its global manufacturing advantages and customized services to enhance market competitiveness [8][18]. Group 4: Strategic Initiatives - The company is focusing on vertical integration and innovation in the ODM sector, aiming to enhance its product offerings across various applications [8][15]. - In the communications sector, the company is building a comprehensive technology matrix to support high-speed connectivity and AI applications [9][16]. - The automotive business is expected to achieve significant revenue growth, with plans to become a leading global supplier of automotive components [10][11].