HK Stock Market Move | COWELL (01415) increased by nearly 3%. The company's orders show resilience. The changing supply pattern of Apple's rear camera provides an opportunity for its market share expansion.

COWELL (01415) rose nearly 3%, as of the time of publication, it rose by 1.95% to HK$30.28, with a turnover of HK$21.5 million. JP Morgan released a research report stating that in the fourth quarter of last year, COWELL's stock price underperformed the Hang Seng Index, believed to be due to market concerns about rising memory prices leading to potential weakening of iPhone demand. However, the bank believes that the market reaction is excessive, and their research shows that orders this year are resilient, with expected annual growth of 8% in electronic manufacturing services shipments in the first half of the year. At the same time, the bank believes that the adjusted iPhone product line in the second half of the year will benefit COWELL, as its business is highly weighted towards the Pro and Pro Max models, and its market share continues to expand. China Securities Co., Ltd. believes that imaging is still an important choice for smartphone manufacturers to create a differentiated user experience, and iPhone's imaging capabilities continue to upgrade. The change in the rear camera supply structure for Apple brings opportunities for company share expansion. The main camera module technologies are COB and FC processes, with only Apple choosing the FC process supply system in the market. This technology has high barriers and is more closed. Considering Apple's strict requirements for suppliers, the FC process has higher entry barriers and the production line is scarce. Therefore, there are very limited Apple camera module suppliers.