On April 11, the national memory base project chip production machine platform was officially installed and installed, indicating that the national storage base has entered the mass production preparation stage from the plant construction stage. In this issue of the weekly report, we begin with the relationship between semiconductor capital expenditures, equipment investment, and equipment manufacturers' performance. We will focus on the relationship between the subsequent fabs landing and the performance of equipment manufacturers, and determine whether the equipment orders will enter the release period from 2018 to 2020. Domestic industry chain targets. Through data analysis, we come to the following two conclusions: 1. Equipment is the main component of capital expenditure, accounting for about 60-70% of total capital expenditures. The wafer equipment manufacturing and packaging industry chain-related equipment companies usher in an order acceleration period; 2 Historical experience shows that the growth of the performance of semiconductor equipment manufacturers is positively related to the increase in fab capital expenditures, and equipment manufacturers have entered the harvest period. From the above two perspectives, with the continuing increase in capital expenditures of IDM and foundry manufacturers represented by Samsung, TSMC, Intel, and Yangtze River Storage, it is expected that global semiconductor equipment sales will maintain rapid growth from 2018 to 2020. Order can be expected.
 

In addition, there have been positive changes in the electronic subdivisions recently. In terms of consumer electronics, in March, sales of flagship new-generation mobile phone brands were hot, with dual cameras, double-glazed glass, 3D glass, heterogeneous screens, and wireless charging being the main upgrade directions. LED, the mainland's LED industry chain has announced a quarterly report recently, laying a good foundation for the annual results. On the panel side, the maturity of flexible OLED technology has risen significantly. The overall yield of BOE Chengdu 6th-generation line has reached about 65%. Domestic progress and terminal penetration rate have shown the certainty of the application prospect of flexible OLED panels. In terms of passive devices, resistance, capacitance, and inductance continue to increase in price, and it is recommended to focus on the subject of price and price rise logic.
 

Consumer Electronics: Concerned about the sales of new domestic machines
 

We started from the weekly report last week to suggest the investment opportunities for the domestic machine industry chain in the second quarter. Domestic mobile phone manufacturers released new machines in March after adjusting inventory. The new products of Huami OV all received a good market response, and the supply chain will The second quarter pulls the goods. For the consumer electronics industry, we believe that there will be a structural market. The upgrade of the camera will be a growth logic in which the supply chain enterprises will drive the increase in the number of single-unit businesses driven by innovation. This year we have seen double cameras sinking to thousands of machines, while high-end machines Three shots began to appear in the mobile phone camera module ASP upgrade is the structural growth in consumer electronics.

Standard recommendation
 

Semiconductor: North Huachuang, Yangjie Technology, Sanan Optoelectronics, Changjiang Electronics Technology, Huatian Technology; Consumer Electronics: Han's Laser, Ouffy Technology, Lansight Technology, Lixun Precision; Display: BOE A, Precision Electronics; Passive Devices: Aihua Group, Farah Electronics, Torch Electronics.