Advancement in camera technology

■ Handset spec-upgrades to boost component makers’ profit growth by 18% in FY22F, auto components and AIoT products could be new driver, in our view
■ We expect XOV’s smartphone shipments to grow 15% or c.544m units in 2022F, driven by overseas expansion and sustained innovation.
■ We reiterate Overweight on China smartphone sector. Sunny Optical, Will Semiconductor and Xiaomi are our sector top picks.