Apple-related companies in China to develop new growth fields under double pressure of stock prices and earnings

Apple Sanlitun, the first Apple store in the Asia-Pacific region to use solar panels, is located in Sanlitun, Chaoyang District, Beijing. (Photo taken on July 16, 2020, Beijing = Xinhua reporter/Cai Yang)

[Xinhua News Agency Beijing March 24] The stock prices of US Apple supplier companies have fallen sharply since the beginning of the year in the Chinese A-share market. Apple-related stocks have fallen more than 20% since the start of the year at the close of business on Thursday, according to financial information service provider Wind. By brand, Shenzhen Mayoring Precision Technology, a smartphone parts maker, has 47.08%, Touch panel major Lanshi Technology (Lens Technology) has 44.34%, and Lixun Precision Industry (Luxshare), a major electronic manufacturing service (EMS) company. fell sharply to 23.88%. More than 40 stocks fell more than 10%.

More than 30% of Apple-related stocks that announced preliminary financial results for the fiscal year ending December 2021 were in the red or had a decrease in profits. Shenzhen Mayor Ying Precision Technology fell into the red for the first time from a net profit of 600 million yuan (1 yuan = about 19 yen) in the previous year. The deficit amounted to 579 million yuan. Four companies, including the company, fell into the red for the first time. Blue Si Technology posted a net profit of 2.088 billion yuan, down 57.4% year-on-year.

Under the dual pressure of stock prices and earnings, many of Apple's suppliers are looking for new growth areas. Xin Wang Da Electronics Co., Ltd., a major lithium-ion battery maker, announced on November 1 that its subsidiary Xin Wang Da Electric Vehicle Battery will invest approximately 12 billion yuan to build a production base for automotive batteries in Zhuhai, Guangdong Province. In February, Lixun Precision Industry Co., Ltd. announced that it will form a strategic alliance with Chery Automobile and establish a joint venture with Chery New Energy Automobile, which is a subsidiary of Chery Automobile, to conduct research and development and manufacture of new energy vehicles (NEV). At the end of last year, Lansi Technology announced that it would enter into the photovoltaic power generation field by forming a strategic alliance with Kaisheng Technology, which handles new displays.

Meanwhile, there are new entrants into Apple's supply chain. On the evening of the 8th, Sanan Optoelectronics, a major light-emitting diode (LED) chip company, announced that it has received orders for mini LED chips from one major overseas customer since the beginning of this year, with the order value exceeding 170 million yuan. . In addition, the company's filter products have passed the smartphone standard certification of "important overseas customers" and have won orders through domestic ODM (original equipment manufacturer) manufacturers in China. This "important overseas customer" is believed to be Apple.

According to Chinese market research firm CINNO Research, domestic sales of Apple mobile phones in January increased 11.4% year-on-year. "iPhone 13" sold more than 2.3 million units, maintaining the top sales volume in the domestic market for four consecutive months.

China Galaxy Securities, a Chinese securities firm, expects iPhone shipments to reach 245 million units in 2022, and continues to view the performance of core companies in the Apple supply chain as promising.