China Display Optoelectronics Technology Holdings (Red Chip)
- ExchangeHong Kong Stock Exchange
- SectorTechnology Hardware & Equipment
Feasibility Study Results in December to be a Catalyst for this Junior
Except for camera-related component names, handset component companies reported weak 1H19 results, dented by a soft smartphone market, keen competition and a lack of spec upgrades. That said, companies think the worst is over in 1H19 and the outlook for 2H19 is optimistic. The peak season for new model launches in 2H19 is the key driver while 5G smartphone demand will only have a positive impact on the smartphone industry in 2H20, so it is too early to enter now. Maintain MARKET WEIGHT.
Handset component companies are set to post their 1H19 results in Aug 19. We expect the sector to deliver polarised earrings. Camera module-related names including Sunny Optical and Q Tech should register decent growth on the back of volume growth and spec upgrade. But acoustics, casing and display companies may see muted performance amid the lackluster smartphone market. Maintain MARKET WEIGHT.