20230913-招银国际-China_Technology_Apple_launch_event__iPhone_15_Apple_Watch_inline_Camera_upgrade_remains_the_major_focus_5页_1006kb

China Technology Sector Update Summary

Key Highlights

• Apple's launch event introduced iPhone 15 models (15/15 Plus, 15 Pro/15 Pro Max) and Apple Watch Series 9/Ultra 2. Key upgrades include a major camera enhancement (periscope lens), new A17 Pro chips, titanium alloy casing, USB-C sockets, and spatial video support. Prices remained unchanged for all models, which is expected to boost share gains in the premium segment.
• The event was in-line with market expectations, with no price hikes reported. This, along with strategic pricing adjustments for older models, should drive volume growth. iPhone shipments for FY2023 are projected at 223 million units, slightly down YoY but supported by increased share in markets like India, LATAM, and SEA, as well as replacement demand from the large iPhone 12 installed base.
• Apple Watch Series 9 features improved performance and new gestures, with Ultra 2 continuing at the same price point. Strong product innovation is expected to solidify Apple's ecosystem positioning.

Recommendations

• Buy: Luxshare (structural components and OEM services), BYD Electronics (titanium casing and material upgrades), FIT Hon Teng (USB-C connector adoption), and Tongda (casing material enhancements).
• Hold: Sunny Optical (camera modules and lenses), AAC Tech (acoustics and optics), and Goertek (structural components).
• Recommended stocks are favored due to product upgrades, which are anticipated to gain market share, offsetting recent underperformance from factors like Huawei Mate 60 Pro launches and US-China tensions.

Valuation and Outlook

• Analyst ratings are high, with a potential 12-month return over 15% for BUY-rated stocks. Target prices indicate upside, based on strong supply chain exposure and expected revenue gains.
• The China Technology sector maintains an OUTPERFORM rating, driven by Apple's ecosystem strength. However, risks include global market tensions and competition from other tech players.

Market Context

• Competitors like Huawei and Samsung are mentioned, but Apple's lineup is expected to outperform regionally. Supply chain mapping shows key exposures for recommended stocks in areas like camera modules, connectors, and casing materials.