Electronic components industry:

Electronic industry growth is determined. Judging from the global and domestic electronics industry, the growth of the electronics industry is certain that although the growth rate will not be too high, the recovery trend will continue. The performance of listed companies also shows a good growth. The current limitation on stock prices is mainly due to the The value level is too high.

The electronic sector is once again active. After the electronics sector lags behind the overall market in July, it became active again in August, exceeding our previous expectations. Due to market adjustments, electronics once again became a safe haven for funds, and the drivers were mainly driven by events such as new product expectations for the future, and performance factors. Not the main driver. Due to the limited event-driven sustainability, it remains to be seen whether the electronic sector's September market will continue its strong performance in August.

Valuation is still the main pressure. According to WIND statistics, as of August 28th, the overall price-earnings ratio (TTM) of electronic components was 48.37 times, which was higher than that of the previous month. Although the electronic components sector has dropped from its high point, it is also higher than last month. In July, the overall strength of the market, and back in August shocks, the advantages of the electronic sector investment show. As a result, the valuation level has rebounded. Since 2013, the level of the electronics industry has rebounded and has been operating at a historically high level. The main reason is that the growth rate of the electronics industry is expected to be optimistic. At the same time, in the current situation of vigorously developing emerging industries, the premium rate of the electronics industry is higher than The historical average has become the norm. However, judging from the current industry growth rate and market valuation level, there is still demand for adjustment in valuation, and it is more difficult for the market to adjust to the situation where it is difficult to ease the pressure on performance growth.

September launch of new mobile phones. The biggest surprise of the market in September is that Samsung and Apple have launched their new flagship mobile phones, and the most striking is the launch of iPhone6. Apple's new technology applications have always been the focus of market attention. The new technologies that the market has speculated are: Sapphire screen, NFC, liquid metal, etc., relevant suppliers are worthy of attention, but from the perspective of the trend of electronic stocks in August, relevant stocks have already performed, and as smart phones become saturated, the growth rate of smart phones declines. Obviously, therefore also pay attention to short-term risks.

Investment Advice. The good growth and certainty of the electronics industry have made the electronics industry an industry that has paid close attention to funds in the past two years. Therefore, the valuation level is relatively high. Although this also limits the overall room for growth, but with the gradual release of performance and the overall valuation of the market rebound, the future electronic market performance is still worth the wait, we still maintain the electronic components "outperform" rating.

Of course, we still adhere to our mid-term strategy. The trend of the electronics industry in the second half of the year is still wave-based and the main investment logic is event-driven. Therefore, we believe that the electronic investment in September is still dominated by safety, with lower valuations, higher margins of safety, and event-driven varieties.