? Looking ahead to 2H22F: Smartphone demand recovery,
easing supply chain constraints and China’s Omicron containment.
? 2Q22F: China’s Omicron pandemic, production and logistics
disruptions and weak China smartphone demand are almost behind us.
?Global smartphone shipments set to resume growth in 3Q-4Q22F due to easing smartphone component shortages, improving logistics and production efficiency in China and a new wave of new model launches.
? China’s smartphone sector valuation correction appears to be over. It is trading at an attractive 12x prospective P/E (5-year low for the sector).
? We reiterate Overweight on China’s smartphone sector. Our sector top picks are Xiaomi, Sunny Optical and Will Semiconductor.