Huaan: The landing of new mobile phones resonates with large-scale model iteration.

Huaan released a research report stating that Apple Inc. held a product launch event, officially releasing the new iPhone 16, iWatch, and Airpods series. The new products all have hardware capabilities that support Apple Intelligence, and it is expected that they will gradually be implemented in the future, expecting AI to bring a new change to the mobile phone industry. At the current point in time, the team believes that more emphasis should be placed on the NPI situation of the iPhone 17 series in 2025, expecting further hardware innovation. OpenAI released the 01 model, with large models transitioning from simple Scale parameters to dual Scaling with efficiency direction represented by RL Reasoning, further alleviating concerns about Scaling Laws in the market. Review of last week's market trends From the performance of the indices, last week (2024-09-09 to 2024-09-13), the Shanghai Composite Index had a weekly change of -2.23%, the Shenzhen Component Index had a change of -1.81%, the ChiNext Index had a change of 0.1888%, the STAR 50 Index had a change of -1.10%, and the Zhongwan Electronic Index had a change of -2.29%. Looking at sector industry indices, the best performing was the printed circuit board sector with a increase of +0.57%, while other electronic industries performed weaker with a decrease of -9.02%. Looking at sector concept indices, the best performing was the server sector with an increase of +1.41%, while the lithography machine sector performed the worst with an increase of 4.94%. Apple Inc. held a product launch event, officially launching the iPhone 16, iWatch, and Airpods series. The iPhone continues to maintain a starting price of $799, with all models upgraded to the A18 series, which can be upgraded to use Apple Intelligence in the future. The products are currently available for pre-order, and from the delivery time for pre-orders from September 14 (Shanghai area), the demand seems to be normal, with expected longer delivery times in the future. The regular colors of the iPhone 16/Plus (Silver/Graphite) show a delivery time on the official website of October 1st to October 10th, while the three new colors (Azure, Pink, Deep Ocean) are relatively less popular, with delivery times all on the release day of September 20th; the iPhone 16 Pro/Max series show a delivery time of about October 10th to October 17th. The new iPhones all have hardware capabilities that support Apple Intelligence, and it is expected that they will gradually be implemented in the future, expecting AI to bring a new change to the mobile phone industry. At the current point in time, Huaan believes that the focus of Apple Inc. should be on the sales of the new phones, but more importantly, it should focus on the NPI situation of the iPhone 17 series in 2025, expecting further hardware innovation. Additionally, Huaan expects that Android manufacturers will start holding flagship phone launch events in October, similar to the innovation in the optical track by various manufacturers a few years ago, one can expect Android phones to start a new round of competition in AI capabilities, thereby driving the growth of the domestic supply chain. Investment recommendations: For the Apple Inc. industry chain, Luxshare Precision Industry (002475.SZ), Suzhou Dongshan Precision Manufacturing (002384.SZ), and Avary Holding (002938.SZ) are recommended; Lingyi Itech (002600.SZ), Zhejiang Crystal-optech (002273.SZ) are worth attention. For the Android industry chain, Xiaomi Group (01810 global technology group), Shenzhen Sunlord Electronics (002138.SZ) are recommended; and Will Semiconductor (603501.SH), Shanghai Awinic Technology (688798.SH), Southchip Semiconductor Technology (Shanghai) (688484.SH) are worth attention. OpenAI releases the 01 model, alleviating market concerns about Scaling Laws In the early morning of September 13th, OpenAI released its latest model 01, which is another major update following the launch of the 40-language model on July 31st. Compared to GPT-40, 01 can display its thought process to users, the Chain of Thought (COT), which can break down complex problems into simpler steps, allowing 01 to demonstrate remarkable accuracy in solving complex reasoning problems. Huaan believes that large models will shift from simple scale parameters to dual Scaling with an efficiency direction represented by RL Reasoning, further alleviating recent market concerns about Scaling Laws. In addition, due to the nature of its Chain of Thought, the reasoning process will consume more computing power than before, and Deng Jiahuang mentioned in a recent investor conference that downstream customers are keen on Blackwell GPU, leading to an improvement in the market's pessimistic expectations for computing power. Investment recommendations: It is advisable to focus on POCO Holding (300811, SZ), Foxconn Industrial Internet (601138.SH), etc. Risk warning: Demand falling short of expectations, technological evolution falling short of expectations.