Hong Kong Stock Concept Tracking | Sony to raise electronic product prices by about 10% in Japan, Consumer Electronics Industry Chain Performance Trending Upwards (with Concept Stocks)
Sony will raise the prices of electronic products in Japan by about 10%, mainly involving products such as televisions, cameras, and headphones. This move is due to the increase in raw materials, production, and logistics costs. The consumer electronics industry continues to recover, with optical and optoelectronic companies expecting positive performance in the first half of the year. Zhongyuan Securities believes that with the empowerment of AI and the release of innovative products, the higher performance demand for hardware will help drive the recovery of consumer electronics demand. Zhongyuan Securities is optimistic about the consumption electronic components brought by optical communication and AI smartphones, as well as operators with technological growth attributes. Related concept stocks include Gao Wei Electronics, Sunny Optical Technology, FortuneShip Intelligent Electronics, BYD Electronic, Q TECH, Goertek Inc., etc. China Mobile, China Unicom, and China Telecom, the three major telecommunications operators, also have profit distribution plans
Sony will raise the prices of consumer electronics products including TVs, cameras, and headphones in Japan, with an average increase of about 10%.
The new prices will take effect on August 1st. The reason for the price hike is the rise in raw materials, production, and logistics costs, including some Bravia 4K TVs, Blu-ray recorders, soundbars, mirrorless cameras, and lenses.
Benefiting from the continued recovery of the consumer electronics industry this year and the rapid development of the downstream smart car industry, optical and optoelectronic companies have generally performed well in the first half of the year. According to a rough estimate by Securities Times reporters, as of now, several optical listed companies such as Sunny Optical, Q TECH, Crystal-Optech, Lens Technology, and Phoenix Optical have released performance forecasts for the first half of 2024, showing overall stronger performance than the same period in 2023.
Zhongyuan Securities released a research report stating that looking ahead to the second half of 2024, major cloud service providers are continuously increasing their investments in AI, and the competition for computing power driven by AI innovation is pushing the continuous upgrading and expansion of hardware infrastructure. With the empowerment of AI and the release of innovative products, the application of AI large models on mobile phones is expected to break the innovation shortage in the terminal market, and the higher performance requirements for hardware will help drive the recovery of demand for consumer electronics products.
Zhongyuan Securities is optimistic about the high industry prosperity and significantly increased technological threshold of optical communication, consumer electronics components that are expected to see both quantity and price rise due to AI smartphones, and operators with high dividends, stable operations, and technological growth attributes. (The three major operators will distribute cash dividends twice in the middle and end of the year, continuously increasing shareholder returns. China Mobile and China Telecom have both stated that starting from 2024, the profits distributed in cash over the next three years will gradually increase to over 75% of the profits attributable to shareholders for that year.)
Consumer Electronics Components:
High Wealth Electronics (01415), Sunny Optical Technology (02382), Fortune Ship Technology (02038), BYD ELECTRONIC (00285), Q TECH (01478), AAC Technologies (02018), etc.
Three Major Telecom Operators: China Mobile, China Unicom, China Telecom
