The overall performance of the industry bottomed out and the leading stocks of electronic components accelerated their growth

On the 27th, the two cities rallied and fell, the bulls were weak, and the industry sector was generally green. Compared with the sluggish performance of other sectors, the electronic components sector rose by 1.96% against the trend, ranking first in the growth of all major industry sectors. In the sub-sector of electronic components, organizations recommend the consumer electronics sector first, followed by security monitoring and components, focusing on companies with good performance expectations.

The overall performance of the industry bottomed out
On the 27th, among the electronic components, Huatian Technology, Guoguang Electric, Jingfang Technology, and Tongfu Microelectronics held a daily limit. In addition to the above daily limit stocks, the remaining electronic component stocks also performed well. Disk data showed that McGee Technology, Beijing Junzheng, Yingqu Technology, Changdian Technology, Edifier, Weir Shares, Mullinson, North Huachuang, Suzhou Good Tech and Jiayuan Technology rose 9.88%, 8.42%, 8.09%, 7.89%, 7.10%, 6.69%, 6.44%, 6.36%, 6.28%, and 5.46%, respectively.

From the point of view of the stock price performance of electronic components, there are 29 companies whose stock price doubled, with an increase range of 100.00% to 742.44%. Among them, Lingyi Zhizao, Shengbang, Beijing Junzheng, Broadcom Integration, Jinyun Laser, Lixun Precision, the share price increase since this year were 332.80%, 316.35%, 238.39%, 236.97%, 234.26%, 220.41%.

Up to now, 25 electronic component companies in the two cities have disclosed their full-year performance forecast for 2019, of which 22 shares are expected to increase significantly this year. Among them, Wall Nuclear, Kodali, Zhuoyi Technology, Dongjing Electronics, Xiongtao, Xinshida, Sanlipu and Tianjin Purin are expected to increase by 950.00%, 210.00%, 163.23%, 140.70%, 133.49%, 130.69%, 130.00% and 125.31% respectively.

"In 2019, the overall performance of the electronic components industry rebounded at the bottom, and the market trend was strong." Huajin Securities analysis believes that the capital market's increase in the first three quarters is more significant, from January to September, the increase reached 50.3%, from January to October, the increase was 50%, ranking first in all first-level indexes. In the first half of the market, driven by the theme of localization and self-controllability, sentiment drove industry valuations to rise. In the future, whether industry fundamentals and market demand can effectively support market valuations have become the main influencing factors.

Focus on stocks with good performance expectations

From the perspective of subdivided industries, domestic semiconductor equipment companies have entered a growth track. Guotai Junan researcher Wang Cong analyzed: "The growth of semiconductor equipment companies has experienced three stages: the initial stage, the growth period and the stable period of advantages. At present, domestic semiconductor equipment companies are in the initial stage. With the revenue of domestic semiconductor equipment manufacturers, equipment revenue will gradually cross IC The profit turning point of the equipment (700-1000 million yuan), superimposing the future multiple production lines to drive downstream demand, I believe that domestic semiconductor equipment companies will enter a rapid growth track. It is recommended that domestic equipment leading company North Huachuang, while etching and MOCVD equipment leading Micro-company and cleaning leader Shengmei Semiconductor also benefited from industry development."

"Consumer electronics is recommended to focus on iPhone wireless communication modules and iWatch's SiP module supplier Huanxu Electronics; COMS chip supplier Weir shares; memory supplier Zhaoyi Innovation; domestic pan-radio frequency leader Xinwei Communication; semiconductor sector recommended to pay attention to China Microelectronics Co., Ltd., which realizes the localization substitution of some semiconductor manufacturing equipment; is continuing to promote the certification of semiconductor equipment manufacturers, electronic grade quartz product manufacturers, quartz shares; fab dry vacuum pump manufacturers, Han Bell Precision Machinery; advanced packaging leader Jingfang Technology; electronics It is recommended that chemicals continue to track the domestic PCB ink leading company Guangxin Materials and CMP polishing liquid leader Anji Technology." Zou Lanlan, a researcher at Great Wall Securities, believes.

Hua Jing Securities analyst Cai Jingyan suggested paying attention to the targets with good performance expectations in the core sector, and reminded the theme investment enthusiasm to decline the risk that performance cannot support. The consumer electronics sector is the first choice in the sub-industry, followed by the security monitoring and component sectors. It is recommended to focus on the packaging and testing sector. The core recommendations of individual stocks remain unchanged, including Luxun Precision, Changying Precision, Leybold High-Tech, Hikvision and Jianghai.