Guolian: Focus on AI glasses battery life issue, optimistic about AR templates and new material battery iteration direction.

Guolian released a research report stating that battery life is one of the core pain points for consumer electronic products. Currently, the battery life of AI glasses is still relatively short, leading to an inconvenient user experience. Considering that mainstream AI glasses currently do not have AR function modules, if chip manufacturers develop a dedicated SoC for AI glasses in the future, there is a possibility of a certain degree of decrease in power consumption and cost. Additionally, the use of new material technologies may become an important way to increase battery capacity without increasing weight. It is recommended to pay attention to companies in the industry chain of new battery technologies for consumer electronics. Guolian's main points are as follows: Battery life is one of the core pain points for consumer electronic products The reason why smartphones have become hardware products with annual sales of over a billion is largely due to their strong battery life capabilities, as seen in the latest Apple and Samsung phones. For example, the iPhone 16 Pro can play videos/streaming videos/audio for up to 27/22/85 hours respectively, and the iPhone 16 Pro Max has even longer battery life. In the Android camp, the Samsung Galaxy S24 Ultra can play videos for up to 30 hours and play audio for up to 95 hours. AI glasses urgently need to improve battery life The battery life of AI glasses is still relatively short, leading to an inconvenient user experience. For example, the battery life of RayBan Meta smart glasses is up to 4 hours under moderate use. The charging case takes about 75 minutes to fully charge, with a quick charge to 50% in 22 minutes. The charging case can provide a total of 8 full charges, equivalent to 32 hours of battery life. However, charging the case itself takes 3.5 hours to fully charge. A battery life of only 4 hours could have a significant impact on user experience, therefore breaking the battery life bottleneck will be a key factor in increasing the shipment volume of AI glasses. Improving battery life requires increasing battery capacity or reducing application power consumption There are two ways to increase battery life: increasing battery capacity or reducing application power consumption. Increasing battery capacity can be achieved by increasing the size and weight of the battery to increase its capacity, or by using new battery material technologies such as silicon-carbon anode battery technology and solid-state battery technology. Using new battery technologies may become an important way to increase battery capacity without increasing weight. Currently, mainstream AI glasses use the Qualcomm Snapdragon AR1Gen1 as the main SoC, which supports some AR display functions. If chip manufacturers develop a dedicated SoC for AI glasses, there is a possibility of a certain degree of decrease in power consumption and cost, gaining a competitive edge in the market. Investment recommendation: Focus on the battery and chip industry chain, maintaining a "stronger than the overall market" outlook Using new material technologies to increase battery capacity without increasing weight is an important path, so it is recommended to focus on companies in the industry chain of new battery technologies for consumer electronics, such as Sunwoda Electronic (300207.SZ) among others. Considering that mainstream AI glasses currently do not have AR function modules, if chip manufacturers develop a dedicated SoC for AI glasses, there is a possibility of a certain degree of decrease in power consumption and cost. Therefore, if they are able to release a main control chip specifically for AI glasses, they may gain a competitive edge in the market. It is suggested to pay attention to companies such as GigaDevice Semiconductor Inc. (603986.SH). Risk reminder: The risk of AI glasses not meeting user experience expectations, and the risk of increased sales affecting the price of AI glasses.