The Zhitong Finance App learned that Huajin Securities released a research report saying that by grasping the bottom of the semiconductor cycle, the launch of the Mate 60 Pro is expected to catalyze the domestic supply chain. Currently, semiconductors are at the bottom of the cycle. Due to low overall consumer terminal demand, the supply chain is cautious in stocking. The bank believes that IC design companies have experienced dewarehousing since Q3 of last year. Currently, inventory levels have gradually returned to normal. With the release of new machines one after another, it is expected to stimulate an increase in downstream demand. As a representative manufacturer of high-end mobile phones in China, the launch of the Mate60Pro may lead the development trend of high-end phones in China. It is expected to accelerate the recovery of Chinese smartphones and accelerate the recovery of prosperity upstream and downstream in the industrial chain.

Incidents:On August 29, 2023, Huawei announced that the total number of Mate series phones shipped has reached 100 million units. To this end, Huawei launched the “HuaweiMate60Pro Pioneer Program”. At the Huawei Mall, it was officially launched at 12:08, allowing some consumers to experience the most powerful Mate phone in history in advance. The 12+512GB version is priced at 6,999 yuan, and the Yachuan Blue and Nanwo Purple color schemes will be sold online at 14:08.

The main views of Huajin Securities are as follows:

The Huawei Mate60 Pro is positioned as the high-end flagship of Android and catalyzes the domestic supply chain.

According to the bank's industry chain research, smartphone semiconductor chips mainly include AP processor chips, BP baseband chips, camera chips, storage chips, RF chips, BMS chips (including charger/charge pump fast charging/wireless charging/battery protection/power meter, etc.), audio motor driver chips, display touch chips, fingerprint recognition chips, etc. The price of the Mate60Pro 12+512GB version is 6,999 yuan, and the card slot is in the high-end tier. The bank believes that the launch of the Mate60 series product is expected to drive the rise of high-end domestic Android phone brands. Currently, semiconductors are at the bottom of the cycle. Due to low overall consumer terminal demand, the supply chain is cautious in stocking. The bank believes that IC design companies have experienced dewarehousing since Q3 of last year. Currently, inventory levels have gradually returned to normal. With the release of new machines one after another, it is expected to stimulate an increase in downstream demand.

5000mAh large battery, supports 88W wired charging, 50W wireless charging, and 20W reverse charging.

According to HCR Huichen data, since 2022, 54.8% of respondents have used their mobile phones for 5-10 hours a day, and 24.9% of respondents have used their mobile phones for more than 10 hours a day. The increase in consumer time spent on mobile phones and the current lack of commercialization of new battery materials has made how to charge quickly become a new pain point for consumers. In terms of wired charging, the Huawei Mate60Pro supports a maximum super fast charge of 88W (20V/4.4A), is compatible with 11V/6A or 10V/4A or 10V/2.25A or 4.5V/5A super fast charging, and is compatible with 9V/2A fast charging. In terms of wireless charging, it supports 50W Huawei wireless super fast charging and 20W wireless reverse charging.

The basic hardware was upgraded, and the software was built into Hongmeng 4.0 and connected to the Pangu model.

Hardware side: ① Screen: The HuaweiMate60 Pro is equipped with a 6.82-inch OLED screen with a screen resolution of FHD+2720 x 1260 pixels, supports 1.07 billion colors and a wide P3 color gamut, supports 1-120HzLTPO adaptive refresh rate, 1440Hz high-frequency PWM dimming; ② Camera: On the camera side, it uses a 50 megapixel main camera+12 megapixel ultra-wide-angle lens+48 megapixel ultra-macro telephoto lens. The main camera and telephoto lens support optical image stabilization, and the front camera is 13 million pixels. ; ③ Storage: The operating memory (RAM) of the new machine is 12GB, and the fuselage memory (ROM) is available in three versions: 256GB/512GB/1TB. The maximum support is to expand the 256 GBNM memory card. ④ Other: Supports under-screen fingerprint, USB3.1 Gen1 interface. Software side: Built-in Hongmeng 4.0+ Pangu model. ① Hongmeng 4.0: Brings many personalized features to allow users to better personalize their phones; Ark Engine (including graphics engine, multimedia engine, storage engine, and low power consumption engine) greatly enhances system fluency and performance. ② By connecting to the Pangu artificial intelligence model, you can experience more intelligent interaction.

Satellite Communication+ “Lingxi Communications” is expected to create a new selling point for smartphones.

The Huawei Mate60Pro has brought about a major upgrade in the communications field. In the absence of a terrestrial network, the Mate60Pro supports making and receiving satellite calls, can also freely edit satellite messages, select multiple location information to generate trajectory maps, add a guarantee for extreme travel conditions, and supports GPS (L1+L5 dual frequency) /AGPS/GLONASS/Beidou (B1i+B1C+B2A+B2B quad-band) /GALILEO (E1+E5A+E5b tri-band) /QZSS (L1+L5L5)/ NaviC multi-location solution. Huawei claims that this phone is the world's first popular smartphone to support satellite calls. Equipped with “Lingxi Communication” technology, it brings a better communication experience through carefully designed antennas and AI algorithms, enabling mobile phones to achieve a more stable network connection in weak signal scenarios such as high-speed trains, subways, elevators, and garages.

Investment advice:As a representative manufacturer of high-end mobile phones in China, the launch of the Mate60Pro may lead the development trend of high-end phones in China. It is expected to accelerate the recovery of Chinese smartphones and accelerate the recovery of prosperity upstream and downstream in the industrial chain.

It is recommended to pay attention to manufacturers in the industrial chain related to Huawei mobile phone hardware, Pangu models, and Hongmeng systems.

It is recommended to pay attention to component manufacturers; BMS chips: Nanxin Technology (688484.SH), Meisinsheng (688458.SH), Shengbang Co., Ltd. (300661.SZ); RF chips: Zhuo Shengwei (300782.SZ), Weijie Chuangxin (146); Camera chips and modules: Well Co., Ltd. (), OFIC (002456.SZ); Audio motor driving chips: Aiwei Electronics (), etc.; Fingerprint recognition chips: Huiding Technology (); Electronics 688153.SH 603501.SH 688798.SH 603160.SH Components: Shunluo Electronics (002138.SZ); Storage chips: Megayi Innovation (603986.SH), etc.

At the same time, it is recommended to focus on the rise in prosperity in the downstream advanced testing field and the advanced testing investment opportunities brought by AI: Tongfu Microelectronics (002156.SZ), Changdian Technology (600584.SH), and Ningbo Silicon Electronics (688362.SH).

Risk warning:There is a risk of changes in the macroeconomic situation; the prosperity of the semiconductor industry falls short of expectations; downstream demand falls short of expectations.