Shenwan Electronics Industry Index fell -3.39% last week, the Shanghai Composite Index rose 0.79%. Last Friday, the GEM index has undergone a relatively large adjustment and electronic stocks are on the GEM. Affected by this, the electronics industry has adjusted on Friday. However, we believe that although the current industry valuation is relatively high, it is difficult to There was a systematic opportunity. However, the level of smart machine inventory in the mainland was effectively reduced, and the overall market appeared back to Wenxin. Observing the current order visibility, we can feel the peak season in August, and the mainland mobile phone market is expected to enter a better place. Moreover, Apple's upcoming low-cost mobile phones, although it means that the competition in the low-end smart phone market, but for the relevant Apple supply chain, means that the emergence of new incremental markets, which will help improve the production of component shipments.

 

 

 

The most important event in the industry last week was the high price of Cree's share price. The company's revenue for April-June 2013 increased by 22% (quarter increase by 7%) to US$375 million. The revenue of LED products and lighting products from April to June was respectively It increased by 17% and 33%, and its revenue accounted for 58% and 36%, respectively; its gross profit margin was 38.2%. Cree rose 1.35% in normal trading on the 13th, closing at 75.76 US dollars, hitting a record high since May 13, 2010; it plunged 16.04% afterwards to 63.61 US dollars. The stock price rose 122.95% so far this year.

 

 

 

Investment Strategy Outlook

 

 

 

Maintaining the previous view, the adjustment pressure brought by the adjustment of smart phone inventory in the third quarter was more of a short-term disturbance, and the current inventory adjustment gradually came to an end, and the domestic smart machine growth trend is still good. We believe that in the long term, despite the signs of saturation of high-end smart machines, for Chinese smart machine manufacturers, in addition to the domestic market, overseas Asia, Africa and Latin America still have huge room for growth. Therefore, the domestic smart machine industry is still in a period of growth. The supply chain is still worth watching. For investment targets, we still recommend that investors pay attention to companies that have actively cultivated their skills in the past two years and have explosive growth opportunities next year, such as Xinwangda and Lixun Precision.