The Zhitong Finance App learned that Tianfeng Securities released a research report saying that under the impetus of industry giants, technologies such as AI, autonomous driving, and XR are gradually maturing, the industrial base is gradually improving, and the positioning is evolving from emerging products to productivity, and the trend of AI empowering the entire industry will become more clear. It is recommended to focus on consumer electronics components & assembly, consumer electronics automation equipment, branded consumer electronics, automotive electronics, panels, etc.

In terms of individual stocks, the bank suggests focusing on the consumer electronics components & assembly industry Fulian (601138.SH), Lixun Precision (002475.SZ), Wingtech (600745.SH), etc.; consumer electronics automation equipment Cree Technology (002957.SZ), Intelligent Cube (301312.SZ), Silinjie (688115.SH), etc.; brands Consumer Electronics Communications Holdings (), Rambler (002351.SZ), Anker Innovation (300866.SZ), etc.; consumer electronics materials Sinopec Technology (300866.SZ) 688036.SH (300684.SZ), Shihua Technology (688093.SH); automotive electronic connection technology (300679.SZ), crystal optoelectronics (002273.SZ), etc.; panels BOE (000725.SZ), TCL Technology (000100.SZ), etc.;

Tianfeng Securities's views are as follows:

We have sorted out the contents of the 2022/2023 CES conference and the preview of this conference. We believe that the differences between this conference and the previous two mainly focus on:

The conference moved from the hot themes of “Intelligent Vehicle Electrification” and “Generative AI” to “Empowering AI to the Pan-Tech Field, Especially All Industries such as Consumer Electronics/XR/Automobiles/Panels”. We believe this indicates that under the impetus of industry giants, technologies such as AI, autonomous driving, and XR are gradually maturing, the industrial base is gradually improving, positioning evolves from emerging products to productivity, and the trend of AI empowering the entire industry will become more clear.

By collating public information such as the PRE-SHOW version of “CES DAILY” /CES official website, and taking into account giant developments such as Microsoft's addition of the “AI Copilot key” and “Qualcomm announced the launch of the second-generation Snapdragon XR2+ platform” on the eve of CES, we sorted out the main highlights of the conference as follows:

1) AI: Focusing on the application of AI across the industry, NVIDIA will bring 14 live presentations at CES 2024, covering many popular topics and content such as generative AI, metaverse, robotics, smart cars, and game design. At the same time, the company cooperates with companies in various fields such as consumer, automobiles, and robotics, such as Lenovo, Mercedes-Benz, Company 9, Obi Zhongguang, Accenture, Deloitte, Google, Meta, Microsoft, and Siemens. AMD is concerned about AI PCs. Su Zifeng and AMD's senior vice president and general manager of the computing and graphics division will discuss the future of artificial intelligence in personal computers. Earlier, foreign media reported that AMD will release notebook GPUs based on Navi 32 GPUs — RX 7700M and RX 7800M at CES 2024. On January 4, '24, Microsoft officially announced that the Windows keyboard will usher in the most significant change in 30 years — adding a dedicated AI Copilot key to all new PCs. The first PCs equipped with AI Copilot keys will be unveiled at CES 2024, and will be launched at the end of February, including upcoming Surface devices. AMD has been at a relative disadvantage in the GPU and CPU markets for a long time. According to the TechWeb account, the company now seems ready to seek breakthrough development on the new track with the help of Microsoft. Qualcomm's focus will be on AI computing on devices. Qualcomm will attend the CES keynote on Wednesday, January 10th at 2:00-3:00 p.m., which will focus on how people will interact with devices in the age of artificial intelligence. According to a report from Qizhan Network, Qualcomm has confirmed that it will bring a variety of smart terminals that support end-side AI deployment at this CES, and at the same time, the Snapdragon digital chassis concept car, which explores future smart car technology, will also be showcased.

2) XR: Focus on large computing power platforms to drive new market directions for Android MR. Qualcomm announced that it will launch a new virtual reality/mixed reality chip, the Snapdragon XR2+ Gen 2, at CES 2024. Qualcomm indicated that the XR2+ Gen 2 will power Immersed's Visor, Samsung's upcoming Google-supported headset, a new HTC Vive headset that has yet to be announced, a YVR headset for the Chinese market, and a fifth headset from a company that has not yet been revealed. Additionally, Hisense will debut to the wider automotive industry at CES 2024 and enter the automotive market with an AR HUD system. On the MR side, although Apple did not attend the CES conference, the official CES 2024 brochure also reviews Apple/Meta MR products and the MR industry. The core optimism is 1) that new MR products may set off a consumer electronics revolution. 2) The key to new products is a sense of user experience. Improvements in hardware technology will drive the XR industry to become more and more solid 2) MR products will change XR's gaming positioning, extend to fields such as education, productivity, and medical care, and play an important role.

3) Consumer electronics: At this CES, manufacturers such as Asus, Dell, Lenovo, HP, Acer, and MSI will be showcasing their new PC products this year, and will focus on AI PCs. Lenovo has released innovative products such as ThinkPad X1 Carbon AI, ThinkPad X1 2-in-1, and IdeaPad Pro 5i, which can provide optimal energy efficiency and performance in both office and life. Through personalized artificial intelligence solutions, everyday work will be easier and easier. At the same time, innovative ThinkPad products will support Lenovo Device Intelligence (LDI) solutions. Through artificial intelligence technology, enterprise IT management teams will use artificial intelligence technology to achieve risk prediction analysis, proactive inspection and alerting, problem repair, and device health scoring to help keep devices running at their best, bringing digital experiences to employees and improving work efficiency to drive better business results. Samsung will also launch a full line of artificial intelligence kitchen and home appliances at the event. Among them, the new BeSpoke Jet Bot Combo vacuum cleaner series equipped with advanced AI technology is worth paying attention to. This vacuum robot has upgraded AI technology and steam cleaning functions, which will provide users with an easier and more convenient cleaning experience.

4) Panels: In addition to mini/micro-LED industry trends, XR/smart car and panel combination products may become the focus of this panel manufacturer's exhibition. BOE will launch a variety of smart screens and new in-vehicle scenarios, and launch an XR mixed reality all-in-one computer and a 32-inch light-field naked eye 3D display. As an automotive business platform, BOE Precision manufactures cutting-edge display technology such as Oxide, 8K, BD Cell, MLED, and OLED, and a variety of industry-leading automotive display panel products. BOE's oversized Oxide smart cockpit helps the vehicle operate at optimal performance, bringing users a multi-sensory experience and improving use. Shenzhen Tianma will be exhibiting various products such as Micro LED.

5) Automobiles: The CES automotive industry will focus on black technologies such as electric vehicles, AI, and screens. Companies such as Mercedes-Benz, Hyundai, and Kia will be showcasing their latest electric vehicle models. Hyundai Mobis is expected to showcase the new Mobion concept car and a transparent screen using holographic optical display technology at CES 2024. The former was developed using the modern IONIQ 5 as a prototype. Using the e-Corner system, all four wheels can steer 90°, while the latter uses a flexible, bendable screen material, and transparent vision shows black technology. Mercedes-Benz announced that it will release the latest generation of the MBUX human-computer interaction system during CES 2024. The system uses Unity's high-resolution game engine and claims to bring the “Hey Mercedes” voice assistant to a new visual dimension. In addition, Mercedes-Benz will also exhibit prototypes of CLA class concept cars and electric G-class SUVs during the exhibition; Honda will launch a new pure electric model in the world; Kia will exhibit five PBV concept models; and Hyundai will showcase technologies such as hydrogen energy and artificial intelligence.

It is recommended to focus on:

Consumer electronics components & assembly: Fulian Industrial, Lixun Precision, Wingtai Technology, Lingyi Intelligent Manufacturing, Boshuo Technology, Pengding Holdings, Lansi Technology, Goertek Co., Ltd., Changying Precision, JD, Guoguang, Changxin Technology, Shunyu Optical Technology (Hong Kong Stock), Gaowei Electronics (Hong Kong Stock), Dongshan Precision, Desai Battery, Sunwoda, Xinwei Communications, Cosen Technology, Huanxu Electronics, Zhaowei Mechatronics (mechanical group coverage), BYD Electronics (Hong Kong shares);

Consumer electronics automation equipment: Cree Technology (joint coverage with mechanical group), Smart Cube (joint coverage with mechanical group), Silingjie, Dazu Laser, Saiteng Co., Ltd., JPT, Huaxing Yuanchuang, Berger Co., Ltd., Rongqi Technology, Tianzhun Technology, Ling Yunguang, Precision Electronics (joint coverage with mechanical group), Bozhong Precision Engineering;

Consumer electronics brands: Audio Holdings, Rambler, Anke Innovation (jointly covered by the Home Appliance, Communications and Electronics Group), Xiaomi Group (Hong Kong Stock);

Consumer electronics materials: Zhongshi Technology, Shihua Technology;

AI PC: First PC OEMs compatible with X Elite: Lenovo Group, Xiaomi Group, Qualcomm ecosystem companies: Zhongke Chuangda (joint coverage with computers), Xidiwei; PC industry chain-related companies: Hanbo Hi-Tech, Jewart, Diowei, Thor Technology, etc.

PCB: Pengding Holdings, Dongshan Precision, Shennan Circuit, Xingsen Technology, Shengyi Technology (joint coverage with Communications Group), Nanya New Materials, Shanghai Electric Power Co., Ltd. (joint coverage with Communications Group), Jingwang Electronics, Shenghong Technology;

Automotive electronics: Electric connection technology, Crystal Optoelectronics, Shunyu Optical Technology, Lianchuang Electronics, Yutaiwei, Heltai, Keboda (covered by the automobile group), Desai Seaway, Linden Electric Control, and Xiang Oil Pump (joint coverage with the automobile group);

Panel: BOE, TCL Technology, Liande Equipment, Precision Measurement Electronics (joint coverage with mechanical systems), Olaide, Dinglong shares (joint coverage with chemical groups), Wright Optoelectronics, Qingyi Optoelectronics, Phillihua, Shenzhen Keda, Qizhong Technology, Huicheng Co., Ltd., Xinxiang Wei, Tiandeyu, Weir Co., Ltd., Zhongying Electronics, Yitian Co., Ltd.;

Risk warning: consumer electronics demand falls short of expectations, new product innovation falls short of expectations, geopolitical conflict