美银-中国消费电子行业国货智造浪潮下的新电子品牌崛起与全球突围 Consumer Electronics - China“China-maxxing”your gadgets

BofAGL。扫lRESEARCHHIndustryOverviewelectronicsTAM.Chinesebrandsappearwellpositionedtogrowglobatheformerareexpectedtodeliverresgrowthdrivenbyproductlaunchesisoffsetbydemandonmarginsuncertaintyoncompetition/risingCOGS.thefunctionalityofproducts.Improvingfunctionalitycandriveconsumeradoption.Productinnovations:ConsumerelectroConsumerfeedbackdatafacilitatesproductiterationswhichenhancecustomersatisfaction.Separately,weseecertainindustrytrendstostimulateconsumerdemand.Forexample,powersupplyuncertaintyproducts,increasingoutdooractivitiesdrivedemandforpowerbank/smartcameras,etc.productshavefewerculturalbarrierstoexpanfunctionalityandpricethemost.Wealsoseeincskilledlabourandanefficientsupplychain;andiii)thefromofflineallowseasierpenetrationintooverseasmarkets.Theconsumerelectronicsindustryfacesintensecompetitionconsistentlyrolloutnewproductstodrivemarketshare.Webelieveoperatorstendtoprioritizegrowthovermargins,whichcouldresultinvolatilemarginsintheshortterm.ManynewlyfoundedcompanieshaveenterTheylaunchnewproductstocompetewithincumbentsintheresultinginintensifyingcompetition.PleaseseeExhibit23-24formoredetails.28April2026>>Employedbyanon-USaffiliateofBofASandisnotregistered/qualifiedasaresearchanalystReferto"OtherImportantDisclosures"forinformationoncertainBofASecuritiesentitiesthattakeresponsibilityfortheinformationhereininparticularjurisdictions.BofASecuritiesdoesandseekstodobusinesswithissuerscoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.Refertoimportantdisclosuresonpage23to26.AnalystCertificationonpage20.PriceObjectiveBasis/Riskonpage19.12964336Timestamp:27April2BofABofAGLOBALRESEARCHelectronicsTAM.ChinesebrandsappearwellpositionedtogrowglobaBuy-ratedAnker/RoborockoverNeutral-ratedAformerareexpectedtodelivmarginsuncertaintyoncompetition/risingCOGS.electronicsstocksthroughdifferaswebelievetheyhavebetterrisk-rewardgiventheirgrowthprofile,risksand2ConsumerElectronics-China|28April2026 BofABofAGLOBALRESEARCHnewconsumerelectron•AIandhardwareupgrades:Thesecanenhancethefunctionalityofproducts.Improvingfunctionalitycandriveconsumeradoption•Productinnovations:Consumerelectronicsisnotonlyaboutconsumersatisfaction.Consumerfeedbackdatafacilitatesproductiterationswhichenhancecustomersatisfaction.trendstostimulateconsumerdemandfor“Nepowersupplyuncertaintydrivesdemandforresidentialpowerstorageproducts,increasingoutdooractivitiesdrivedemandforpowerbank/smartcameras,etc.Inourview,newproductshavebetterfunctionality.Thiswillallowthemtobeusedinmoredifferentscenarios(time),andii)morespatia4ConsumerElectronics-China|28April2026BofAGLOBALBofAGLOBALRESEARCHAINewAItechniques/algorithmscanenhancethefunctionalityofproduimage-mergingtechniquesenable360-degreephotoshooting.HardwareupgradesTheenhancementofhardwarewithdecliningunitcostscanenhancethefunctionalityofproducts.Forexample,thenewiterationsofproductsimprovingproductspecifications.BofABofAGLOBALRESEARCHProductinnovationscontinuousproductiterationtoenhancecustomersatisfaction.6ConsumerElectronics-China|28April2026Weseeseveralstructuraltrendswhichcouldunderpinproducts.Thesestructuraltrendsincludereducedenergysecurityduetogeo-politicrisks,increasingoutdooractivitiesparticipation,andincreasinguseofsocialmediaforRecentgeopoliticalconflicts(snowstormintheUS)haveaddeduncertaintytoutilitypricesandenergystabilityforandenhancetheenergystabilityforindivHomesafetyAlgorithmandhardwareupgradesaredrivingmoreintelligenthomesecuritysystems.productsremainslowinthedevOutdooractivitiesParticipantsofoutdooractivitiessuchascyclingandskiingareakeytargetcugroupforsmartcameraproducts.Therapidgrowthofoutdooractivitiesparticipationwillbeagrowthdriverforpanoramicandactioncameras.181mnin2024.Theoverallparticipationratioincreasedfrom49%in2017to59%in2024.WebelievetherincreasingpopularityofvariousoutdooractivitiesgivenincreasingparticipationinIncreasinguseofsocialmediaforsharingphotos/videosTheproliferationofsocialmediauseforpersonalorcommercialwillunderpinstructuraldemandforbetterrecordingdevices.Socialmediaisnotonlyforindividualusebutalsoforcommercialuse,particularlymarkevisitedatleastoneoftheseFamilyproductsthroughamobiledeviceapplicationor8ConsumerElectronics-China|28April2026productshavefewerculturalbarrierstoexpanfunctionalityandpricethemost.Wealsoseeincskilledlabourandanefficientsupplychain;andiii)thefromofflineallowseasierpenetrationintooverseasmarket.LowculturalbarriersforconsumerelectronicsproductsInourview,culturaldriversareimconsumersvaluefunctionalitythemost.Aslomoney,itwouldbeeasierforconsumerelectronicsbrandstogrAccesstoabundantskilledlaborandlow-costsupplychainIntelligencearticle,Chinaisenjoying“engineerdividends”asofficialdatashowsthatthenumberofengineersinChinaincreasedfrom5.2mnto17.6mnfrom2000tcountries.%东莞能率科技有限公司立讯精密工业股份有限公司东莞新能源科技有限公司深圳鑫利特电路有限公司东莞市京冠卓电子有限公司%文晔科技股份有限公司广东弘景光电科技股份有限公司余姚舜宇智能光学技术有限公司东莞精熙光机有限公司诠鼎科技股份有限公司BofAGLOBALBofAGLOBALRESEARCH%OnlinechannelsallowChinesebrandstopenetrateoverseasmarketmoreeasilyfootingwithforeignbrandstopenetrateintooverseasmarkets.Thisisimportantasthiscouldallowbrandstoselltheirproductsandgenergroundfortheirnewproducts.Thisallowsthebrandstobetterunderstandconsumerforits3D-textureUVPrinterinmid2025.TheeufyMakeUVPrinter,whichisthefirstpersonal3D-textureUVprinter,raisedUcrowdfundingrecordintheplatform’shistory.Ankerbeganofficialshipmentsofthe10ConsumerElectronics-China|28April2026BofABofAGLOBALRESEARCHTheconsumerelectronicsmarketisahighlycompetitiveindustry.Opconsistentlyrolloutnewproductswithbettertechnologyandatlowerpricestodriveearningscycleofconsumerelectronicscompaniesishighlyvolatilewithlowvisibility.000012ConsumerElectronics-China|28April2026competitionvolumesandcompetitorsproductsDespitethehighlycompetitivenatureofthesector,webelievesectorleadersstillhaveanedgeoversmaller/newfirmsincapturinglaunchingsuccessfulp14ConsumerElectronics-China|28April2026BofABofAGLOBALRESEARCHovertime,asfiercecompetitionandR&Dinvestmentlargelyoffsettheprofitsearnedfromproductsovertime.Inourview,brandscouldhavebettermonetizationcapabilitiesovertime,thankstostrongerbranding,subscriptionfees,andaccumulationofpatents/copyrights.Yet,theyhavetoconsistentlylaunchsuccessfulnewproducdevelopsuchmonetizationpotential.Brandimagecanimproveovertimeiwillingtopayahigherpricingpremiumforsimilarproducts.ThisallowsstrongbrandstochargehigherpricingwithahigSubscriptions/softwareusagefeesincreasetheswitchingcostofconsumersfromonebrandtoanother.ThiscouldcreateAccumulationofpatentsandcopyrightsTheaccumulationofpatentsandcopyrightsovertimecouldfurtherstrengthenthecompetitiveedgeofabrand.Overtime,itwillbecomemoredifficultfornewbrands/companiestocompetewiththeincumbents,whichhaveaccumulatedstrongtechnologicalknow-how.BofABofAGLOBALRESEARCHTariffsshiftingtheirproductioncapacityfromChinatoSEA.However,anychangeintariffpoliciescouldaddtothecostpressureandmarginuncertaintiesforthecomSomeoftheelectronicscompaniescouldbeconsideredaJanuary,officialshaveraisedthepenaltiesforunauthorizedflyingofdpossiblejailtime.StartinginMay,alldronesmustberegisteredwiththeowners’realnames,requiringuserstolinktheirflightequipmenttotheirofficialidentificationortheircomponentsmaynotbesold,rentedorbroughtintoBeijingstartingfromMay.Consumerelectronicsproducts’majorrawmaterialscostsareeleaddtothetotalcostpressureorsourcingdifficultiesforconsumerelectronicskeyrawmaterials.Assuch,itisnoteasytoestimmemorycostsaccountedforsingle-digit%forArashibeforethepricehike,whichcouldrisetoteens%levelafterthepricehike.16ConsumerElectronics-China|28April2026BofABofAGLOBALRESEARCHManynewlyfoundedChinesecompanieElectronics”space.Theylaunchpcategoriesglobally,resultinginintensifyingcompetition.PleaseseeExhibit23-24formoredetailsonbothprivateBofABofAGLOBALRESEARCH18ConsumerElectronics-China|28April2026BofABofAGLOBALRESEARCHArashiVisionuncertainty.ThemarginsuncertaintyisduetointensecompetitionswithDJIandrisingrawmaterialcosts.AnkerInnovations(XAIFF)light,profitableconsumerelectronicscompanywithclearcomparablepeers.Ankerre-ratedto20-25xduring2023-24,whichwebelieveshouldbethenew-normallevelforcompany.Tofactorinthecurrentsoftmacroenvironmentoutlook,weusethelowerendoftherange(Risks:tariffincrease,rawmaterialcostssurArashiVision(XSNSF)competitionsproducts,risingrawmaterialcosts,intensecompetitions,unfavorablegovernmentpoliciestocontrolimportsandsalesofproducts,patentsrisksjustifiedasRoborockseesstrongtoplinegrowthmomentum,butthevisibilityofmargininflectionpointremainslowinthenearterm.Upsiderisks:competitioneasing,UStariffgetslowerinVietnamandChina,better-than-Downsiderisks:competitionintensifying,tariffdisputesescalation,macroeconomyslowdown.expressedinthisresearaboutthesubjectsecuritiesandissuers.Wealsocertifythatnopartofourrespectivecompensationwas,is,orwillbe,directlyorindirectly,relatedtothespecificrecommendationsorviewexpre20ConsumerElectronics-China|28April2026BofABofAGLOBALRESEARCHConsumerElectronics-China|28A22ConsumerElectronics-China|28April2026ConsumerElectronics-China|28AR1R1R1ofpotentialpricefluctuation,are:A-Low,B-MediumandC-High.INVESTMENTRpotentialaswellasitsattractivenessforinvestmentrelativetootherstockswithinitsCoverageCluster(definedbelow).Ourinvestmentratingsare:1-Buystocksareexpectedtohaveatotalreturnofatleast10%andarethemostattractivestocksinthecoveragecluster;2-NeutralstocksareexpectedtoremainflatorincreaseinvalueandarelessattractivethanBuyratedstocksand3-Underperformstocksaretheleastattractivestocksinacoveragecluster.Aninvestmentratof6(NoRating)indicatesthatastockisnolongertradingonthebasisoffundamentals.Analystsassigninvestmentratingsconsidering,amongotherthings,the0-12monthtotalreturnexpectationfo