Hong Kong Stock Concept Tracking | The world's first triple-fold screen smartphone is coming? Huawei Mate XT Extraordinary Master officially announced (with concept stocks)

According to the Zhītōng Finance APP, on September 3rd, Huawei officially announced the name of its new device: Mate XT Extraordinary Master. Currently, the design of the new device has not been revealed. Based on the product outline in the "Z" shape on the official announcement poster, industry insiders predict that the Huawei Mate XT Extraordinary Master may be the first Huawei three-fold screen phone. If Huawei successfully launches a three-fold screen, it will trigger a new screen revolution in the mobile terminal industry. Related stocks: Sunny Optical Technology (02382), Qiu Titanium Technology (01478), Pactera Technology International (00354), BYD Electronics (00285).

Throughout this year, there have been continuous reports about Huawei launching a "three-fold screen phone." Earlier reports mentioned that Huawei has started stocking up on three-fold screen phones. In August this year, several digital influencers posted photos on social media platforms showing Huawei's Executive Director Richard Yu operating a new device in the cabin. The photo shows Richard Yu holding a three-fold screen new device.

Huawei has been planning its three-fold screen phone layout for many years. As early as 2022, it had applied for multiple patents related to three-fold screens. On February 21, 2024, Huawei applied for a patent for a "foldable screen device," demonstrating a new form of electronic device with three folds, including three shells, two hinges, and a flexible screen, using an internal folding hinge and an external folding hinge to connect the three shells.

So far, Huawei's three-fold screen new device has been exposed multiple times. When folded, it is not considered bulky, and when unfolded, the right side of the device body provides a structure similar to a "pen slot." Additionally, the phone adopts an internal fold + external fold + dual hinge design, with a screen size expected to be around 10 inches, powered by the Kirin 9 series platform, and scheduled to be released "earlier than the Mate 70."

Currently, in the field of three-fold screens, no manufacturer has launched a mass-produced model yet, with Huawei being the first in the industry. This is because three-fold screens require higher flexibility, durability, and hinge strength, increasing the difficulty of mass production. Therefore, there are rumors that Huawei's three-fold screen will be the new generation of "electronic Maotai," and it is expected that scalpers will sell it at a premium.

According to TechInsights statistics, in the second quarter of 2024, Huawei's wholesale average selling price (ASP) and wholesale revenue both reached historical highs, mainly due to a large proportion of high-end models (Mate, Pura series, and foldable screen series). The Chinese market remains Huawei's core market, accounting for 89% of its global smartphone shipments.

At the same time, the strong sales of foldable screen phones have also contributed to Huawei's record high average revenue from smartphones. Data shows that in the second quarter of 2024, sales of Huawei's book-style Mate X series and flip-style Pocket series increased by 400% and 50% year-on-year, respectively.

iResearch Consulting points out that although current foldable screen phones still focus on high-end business users, this does not mean that the ceiling of this track is limited. Looking at the development of other consumer electronics categories, they have gradually evolved from high-end positioning to multi-level conduction, moving from single scenarios to multi-scenario linkage. In this process, as the boundaries between different terminals gradually disappear, the three-fold screen, due to its coverage of more scenarios and demand, forms a versatile and boundaryless future terminal In other words, if Huawei successfully launches a tri-fold screen, the mobile terminal will initiate a new screen revolution. On the one hand, with the maturity and mass production of tri-fold technology as a sign, the field of foldable screens will open up a new competitive track. Because tri-fold technology signifies a historic fusion of the experiences of tablet PCs and smartphones, a new species of "mobile large screen" will emerge, rewriting the industry's innovation path. On the other hand, tri-fold also means that foldable screen phones are experiencing technological elevation, where productivity work and entertainment scenes are further integrated into a foldable screen, bringing new imaginative space to the digital life of modern human society.

According to an Open Source Securities research report, with the breakthrough of Huawei's related technologies, the release of the Mate 60, Pura 70 series, and Mate X5 foldable screen series will bring Huawei back to the domestic high-end smartphone market. Currently, the Mate 60 and Pura 70 series are still popular, and domestic high-end phones are returning to peak sales.

Related concept stocks:

Sunny Optical Technology (02382): As a major supplier of camera modules for Huawei, Sunny Optical has ranked in the top two in market share for many years. The company is expected to continue benefiting from the innovation and upgrade of mobile optical technology and the accelerated penetration of automotive ADAS systems, with clear long-term growth logic in multiple cameras/3D/automotive applications.

Q Technology Group (01478): In 2019, Q Technology Group is expected to benefit from the strong growth in Huawei's smartphone shipments, rapid improvement in Huawei's optical specifications, and a more optimized product structure. This indicates that Q Technology Group's share in Huawei's smartphone business is gradually increasing, especially in the supply of camera modules for Huawei smartphones.

China Software International (00354): Leveraging hundreds of scenarios for southbound perception applications and years of research and development capabilities in the 'software root technology' of the HarmonyOS operating system, China Software International actively provides southbound application migration services for HarmonyOS ecosystem partners, fully leveraging the advantages of HarmonyOS in one-time development for multi-terminal deployment, flexible separation and integration, and unified ecosystem native intelligence.

BYD Electronics (00285): The acquisition of related assets from Jabil is expected to continue to release profits in 2024 and 2025. Jabil's historical revenue and profits are relatively stable. In the long term, BYD Electronics will further increase the automation rate of Jabil's factories, reduce operating costs, and improve business performance. BYD Electronics provides Huawei with production and assembly services for key components such as metal mid-frames, glass back covers, and camera decorative parts