Today's Guide:

Nintendo plans to increase production of gaming consoles, and A-share suppliers are expected to benefit

Tencent once again launches short video, relying on WeChat Eco to launch video number

The Supreme Law will comprehensively strengthen the judicial protection of intellectual property rights, and they will be winners

Global crystal industry leader stopped production, domestic substitution ushered in new opportunities

The provision coverage of small and medium-sized banks will be reduced and more credit resources will be released

Starbucks will launch artificial meat products in China, the industry has broad prospects

Nintendo's main console, Nintendo, was affected by tight supply during the outbreak prevention and control Switch "is seriously out of stock, and the price has more than doubled." Nintendo has plans to increase production of Switch consoles to better meet the needs of players around the world, with A-share suppliers expected to benefit.

According to media reports, Nintendo's console production is now entrusted to the outside, has asked parts and foundry assembly manufacturers and other suppliers to expand the April-June Switch production units. Nintendo has announced that it expects to increase the number of Switch consoles produced by about 10 percent in 2020 from 2019, when the series totals about 20 million units, according to major parts companies.

In fact, due to the impact of host manufacturing and transportation during the epidemic prevention and control, Switch consoles have been in a tight supply situation since early February, online prices have been rising since mid-February, in early April it climbed to more than 4000 yuan, reaching about 2 times the recommended retail price of manufacturers.

And with the clarity of Switch console production plan, in order to meet the needs of players at the same time, its upstream and downstream supporting enterprises are also expected to benefit from it, including some small A-share partners.

Comments:

In terms of supply chains,Zhongjing ElectronicsA key customer of its subsidiary, Yuansheng Electronics, is Nintendo's supplier, Hong Kong's Yoshida, which provides FPC (flexible circuit board) business for Nintendo's Switch consoles, while Ates, a controlling subsidiary of Zhi Power, indirectly provides composite board structures for Nintendo.

To.Zhongjing ElectronicsYuansheng Electronics, for example, its supporting Switch console FPC project was developed in December 2015 and first supplied in May 2017, until the 2018 batch delivery, before and after the cycle of more than 2 years, has now formed a stable cooperative relationship.

"The company's focus on supply and capacity is to protect the demand for large customer orders and shipping plans." Work has now been fully resumedZhongjing ElectronicsSaid.

In terms of foundry, foxconn is currently the largest foundry for Switch consoles. It is understood that since the spread of the new crown pneumonia epidemic in the world, Switch game consoles due to hot sales and supply chain factories have not yet recovered, resulting in the lack of supply of the machine, causing a large-scale shortage of goods on the market, Foxconn Yantai foundry in early March emergency received a large number of Switch orders.

2, business  Tencent once again launches short video, relying on WeChat Eco to launch video number

2020 is the ninth year of WeChat's birth. In a new round of change, Tencent launched WeChat's Video Number earlier this year. In the official definition, "Video number is a platform for you to record and write, and a window into others and the world." "

Users can post a video within 1 minute, or 9 pictures, relying on a single stream of information, the entrance is second only to the discovery page's secondary menu, "Friends Circle" below. At present, video numbers are both professional media organizations, KOL and stars and other high-impact creators, but also more and more ordinary users apply to join them. 

Comments:

Tencent doesn't pay much attention to short video. There is microscopy before, and then invest in fast hands. With the popularity of 5G, video will become the next social carrier. According to AI media monitoring, because of the outbreak in the past three months, the longest time users spent on WeChat, Tencent now launched a video number is a better time.

WeChat users are very sticky, coupled with its huge user base, if the product segment does not appear a big problem, the video number is likely to break out, thus complementing Tencent's short board in the field of short video. The agency recently reported that, with the current WeChat social advertising core cashing way of friends circle, public numbers have entered a saturation period, in the long run, new business such as video number potential advertising value in the "10 billion level."

On the corporate side,Pass-through electronics: Joint Tencent capital increase to participate in Shengcan Technology, Shengcan Technology mainly for Tencent WeChat's full platform open ports, the development of "micro-merchants", "smart stores" and other micro-store marketing systems, deep into the WeChat ecosystem consumption link; 

The capital of the new country: The wholly-owned subsidiary, Prudential, has reached a strategic partnership with WeChat to become the core supplier of WeChat's third-party certification audit service, with a high market share and tencent's S-level (highest) supplier in this field.

3, the cultural industry  The Supreme Law will comprehensively strengthen the judicial protection of intellectual property rights, and they will be winners

The Opinions on Comprehensively Strengthening the Judicial Protection of Intellectual Property Rights were issued to clarify that for serious infringements of intellectual property rights, the amount of compensation shall be determined from a high level in accordance with the law, and counterfeit or pirated goods and materials and tools mainly used for infringement shall be confiscated and destroyed in accordance with the law, so as to effectively deter the re-occurrence of infringements of intellectual property rights. 

Comments:

Intellectual property rights are the most scientific, complete and core embodiment of the intellectual achievements of talent innovation. With knowledge-driven and gradually leading the way of economic development, the importance of this intangible property right will become increasingly prominent.

The relevant concept stocks are mainlyLight one technology, Tolesand so on.

 lurking party 

4. Electronics . .  Global crystal industry leader stopped production, domestic substitution ushered in new opportunities

According to reports, the world's leading crystal-zhen industry Semp announced before his birth that all factories in Japan will be closed between April 25 and May 6, involving 50 factories, the number of people on leave about 20,000. Sempson is the world's largest enterprise in jing zhen industry, with a market share of about 11.7%.

Comments:

Crystal vibration is involved in timing, frequency control and other electronic devices, the necessary basic components, widely used in 5G equipment, automotive electronics, mobile terminals, smart wear, home appliances, computer phones, medical devices and other fields, in which quartz crystal zhen occupies a dominant position in the market.

With the advent of the 5G and WIFI6 eras, users are demanding higher and higher transmission speeds, resulting in a demand for high-frequency crystals, while high-frequency crystallization production processes need to be changed from mechanical processes to lithotic processes, and the supply threshold is raised.

It is estimated that the global potential market demand for high-frequency crystals is 4 billion, and the demand will be about 660 million in 2020. Assuming a single high-frequency crystal vibration price of 2.5 yuan, the potential market size of the global high-frequency crystal is 10 billion yuan, and the market size in 2020 is about 1.65 billion yuan.

Everbright Securities recommends paying attention to:Huilun crystal, Taijing technology。Whelan crystalsIs the largest Mhz crystal zhen manufacturer in mainland China, in 2019 to invest heavily in miniaturized high-frequency crystal, and has been supported by national projects.Taijing TechnologyIt is the largest Khz crystal manufacturer in mainland China, at 32.768KHz Low-frequency crystal process requirements, in NBIOT, Bluetooth and other wireless communication applications in high demand, the current production of manufacturers are basically in Japan.

5, the bank  The provision coverage of small and medium-sized banks will be reduced and more credit resources will be released

The executive meeting of the State Council held on the 21st determined that the weight of GSP Finance in the comprehensive performance appraisal indicators of bank branches should be raised to more than 10%, and that the investment of micro-credit should be encouraged. At the same time, small and medium-sized banks will be provision coverage regulatory requirements phased down by 20 percentage points, the release of more credit resources, improve the ability to serve small micro-enterprises. 

Comments:

Provision coverage is the mandatory supervision requirement of China's banking industry, the standard of non-performing loan identification is strict, the ratio of provision is significantly higher than the international level. If the provision is reduced, it will contribute to the bank's unetributed profits, with the effect of increasing the dividend yield or thickening the core Tier 1 capital.

The Treasury last year revised the Financial Rules for Financial Enterprises and publicly solicited opinions, which would be seen as a tendency to hide profits if the provision coverage exceeded regulatory requirements by more than twice that.

On the corporate side,Ningbo Bank: Provision coverage reached 525 per cent, mainly for public loans to small and medium-sized enterprises.

Changshu Bank: Provision coverage reached 467%, micro-credit business system mature.

6. Artificial meat  Starbucks will launch artificial meat products in China, the industry has broad prospects

On April 21st Starbucks announced that it would launch a new plant protein-based artificial meat lunch menu in China on Wednesday, including five dishes, including green pasta made from plant beef, large rolls of chili and American hot sauce, salads made from plant pork and cereal bowls.

Swedish oat milk brand Oatly has also been introduced to offer three dairy-free oat milk drinks. The menu, which will go on sale Tuesday at Starbucks stores in China, is mainly made by Beyond Meat, the first "artificial meat" in the United States.

Since the listing of Beyond Meat, the first shares of artificial meat last year, a number of catering giants around the world have entered the market. Starbucks' artificial meat product is Alsoond Meat's first foray into the Chinese market.

Comments:

Just the day before (April 20), KFC announced that it would "plant gold chicken nuggets" in a limited number of pre-sale plant meat products. These "chicken" ingredients are soy protein, wheat protein and pea protein, which do not contain chicken ingredients at all, but the taste is not much different from real chicken.

According to the United Nations, the global market for meat substitutes will total about $4.63 billion in 2018 and is expected to reach $5.28 billion in 2020, more than $6 billion by 2023 and 6.8 percent for CAGR in 2018-2023.

On the corporate side,Twin Towers Food: Junbang Trading, a wholly owned subsidiary of the company, signed an 85% pea protein sales contract with Beyond Meat, with the first purchase of pea protein amounting to 628,320 pounds (about 285 tons).

Gold-letter ham: The company's plant meat (artificial meat) products have now started production, is currently available in the flagship store of the golden-word ham Tmall, the product is produced by the company in cooperation with DuPont Corporation of the United States.

Three squirrels: The company previously said that the market is divided into two kinds of artificial meat, the first artificial meat also known as soy protein meat, the use of soybean raw protein to make food, the company's vegetarian meat dry, vegetarian beef grains, etc. belong to this category.

Yingya Securities Advisory Disclaimer:The information in this document does not constitute any investment advice and investors should not substitute such information for their independent judgment or to make decisions based only on such information.The author seeks to make the information involved in this article accurate and reliable, but does not give any guarantee of its accuracy, completeness or timeliness, nor is he liable for any loss arising from the use of the information in this document.