On August 26, the consumer electronics sector saw robust activity, with stocks such as Lingyi Intelligence (002600.SZ), Fenda Technology (002681.SZ), and GoerTek (002241.SZ) reaching their daily trading limits.

Industry analysts widely anticipate that the consumer electronics industry is entering a peak season for new product launches, prompting a potential reshaping of sector valuations. With numerous AI-enabled product releases scheduled for September, CITIC Securities advises investors to keep a close eye on product innovations within the consumer electronics AI segment.

Rising Expectations Amid Multiple Upgrades

With Apple's autumn event looming just a month away, leaks about the iPhone 17 series have intensified. According to foreign media reports, the iPhone 17 series, particularly the Pro version, is set to introduce several significant upgrades, encompassing improvements in imaging, performance, materials, battery life, and more. Notably, the Pro series will debut an aluminum frame and integrated design, heralded as "the most significant aesthetic innovation in history."

It is understood that the iPhone 17 Pro series will abandon the titanium metal frame of its predecessor, opting instead for an aviation-grade aluminum alloy frame that seamlessly integrates with the backplate. This marks the first time Apple has employed aluminum materials in its Pro series.

In terms of imaging, the iPhone 17 series will feature a 4x physical focal length lens, supporting 8x optical zoom capabilities. The rear cameras adopt a horizontal large matrix design, equipped with three 48-megapixel sensors covering the main camera, ultra-wide-angle, and periscope telephoto lenses. Additionally, the front camera will be upgraded to 24 megapixels.

For the display, the iPhone 17 Pro will sport a 6.3-inch screen with a 120Hz refresh rate, incorporating a new coating technology that offers scratch resistance, wear resistance, and anti-glare properties. Under the hood, it will be powered by the A19 Pro processor, which promises a 5% to 10% reduction in power consumption while delivering a 5% performance boost.

Outsiders speculate that Apple's new product event could commence on September 9 (1 AM, September 10, Beijing time), at which point more detailed product information will be unveiled.

"AI + Consumer Electronics" Ignites New Growth

In recent years, the fusion of "AI + Consumer Electronics" has emerged as a vital driver of China's economic growth. The expanding application of AI in consumer electronics is catalyzing the transformation, upgradation, and technological renewal of the industry.

Currently, the application of artificial intelligence technology in the consumer electronics sector has yielded numerous achievements. Notably, the continuous advancement of large AI model technology is bolstering the computing power of consumer electronics. Simultaneously, new products such as AI smart home systems, AI mobile phones, and AI glasses have made their debut.

China has issued several policies aimed at fostering the deep integration and widespread adoption of AI in the consumer sector, infusing new vitality into the consumer electronics market. At the local level, Shanghai's "Implementation Plan to Accelerate the Development of 'AI + Manufacturing'" emphasizes promoting the iterative upgrading of new intelligent consumer terminals, including AI computers, AI glasses, and AI mobile phones.

According to Guosheng Securities, the medium- and long-term growth trajectory of the consumer electronics sector remains robust, with a clear trend towards AI innovation. The implementation of AI at the end-user level is anticipated to accelerate the replacement cycle of mobile phones and other devices, driving hardware upgrades and promising recovery elasticity for the sector.

Leading Firms Join Forces to Seize New Opportunities

Generally, the third quarter marks the traditional peak season for the consumer electronics industry, with major terminals unveiling new products such as AI mobile phones and AI glasses. The sector enters a peak production period, leading to a rapid increase in the operating rate of the entire industrial chain.

In its research report, Guosheng Securities noted that leading companies within the domestic supply chain, characterized by strong R&D capabilities, substantial engineering dividends, and a solid fundamental base in the consumer electronics sector, are poised to significantly benefit from the wave of AI terminal innovation. These firms are expected to fully capitalize on the structural growth opportunities arising from hardware upgrades.

Lingyi Intelligence primarily offers customers one-stop intelligent manufacturing services and solutions, encompassing precision functional parts, structural components, modules, and more. For several years, it has led the global market in terms of market share and shipment volume for precision functional parts. Lingyi Intelligence stated that the company has transformed from a traditional consumer electronics product manufacturer into an AI terminal hardware manufacturing platform. Moving forward, it will focus on its core business while expanding upstream, vigorously developing new areas such as robots, server cooling, and AI glasses, thereby continuously enhancing its comprehensive competitiveness.

Lens Technology (300433.SZ), a prominent player in the Apple supply chain, has recently garnered significant market attention for its dual-track strategy focusing on "humanoid robots + Ant Ecosystem." The company not only supplies key glass components for Vision Pro but has also achieved technological breakthroughs in robot sensor technology. The "Alipay Tap and Go" solution developed and assembled by Lens Technology has achieved large-scale adoption, currently covering tens of millions of merchants nationwide, positioning the company favorably for future expansion in this domain.

Luxshare Precision (002475.SZ) leverages its expertise in precision manufacturing, materials science, and system integration to synergistically propel the growth of its three major businesses: consumer electronics, communications and data centers, and automobiles. In the first half of this year, Luxshare Precision reported revenues of 124.5 billion yuan, representing a year-on-year increase of 20.2%. Net profit attributable to shareholders of listed companies stood at 6.64 billion yuan, up 23.1% year-on-year. Luxshare Precision stated that its consumer electronics business has performed steadily, not only successfully introducing multiple new product projects but also deepening collaborations with customers in emerging fields such as AR/VR, consumer-grade 3D printing, and robots.

In terms of market performance, on August 26, the consumer electronics sector bucked the overall market trend, with stocks such as Lingyi Intelligence, Fenda Technology, GoerTek, and Dongni Electronics reaching their daily trading limits.

Relevant research reports indicate that the consumer electronics industry is entering a new phase of prosperity. Leading enterprises are accelerating their transition from traditional manufacturers to intelligent solution providers through the vertical integration of "hardware + algorithms." In terms of valuation, the sector's current dynamic price-to-earnings ratio remains below the median of the past three years, leading some institutions to believe that the valuation recovery trend is likely to persist.