Shulou(Shulou.com)11/24 Report--

CTOnews.com, October 20, Guo Mingyi released a market research briefing today, believing that Goodix will replace AMS as the supplier of Huawei's new ambient light sensor (ALS).

Guo Mingyi believes that Huiding Technology is an undervalued domestic alternative winner, expects strong growth in the optical fingerprint business in 2024, and provides related products for OPPO, vivo and other companies.

Guo Mingyi said Huiding will replace NXP as the exclusive supplier of NFC chips to OPPO and is expected to continue to receive orders for flagship models from other high-end brands.

Guo Mingyi also estimates that Huiding Technology will become the second supplier of vivo ultrasonic fingerprint sensors in 2024, breaking Qualcomm's monopoly.

CTOnews.com attached the following forecast information about Huiding Technology by Guo Mingyi:

Optical fingerprint shipments at Huiding will resume strong growth in 2024: optical fingerprint shipments at Huiding are expected to grow strongly by about 35 YoY to 190 million pieces in 2024.

The key to strong growth is that shipments of Xiaomi's optical fingerprint machines will double in 2024. Second, the market share of Chinese OLED screens continues to rise in China (estimated to be about 50% vs in 2024. 40% in 2023), and brands have more budgets to use optical fingerprints because of lower prices.

Optical fingerprinting is a key business of Huiding, and strong shipping growth is expected to significantly contribute to the company's revenue and profits in 2024.

Huiding's high unit price ultrasonic fingerprints will benefit from the new trend of folding machines; high-end folding machines use two ultrasonic fingerprints as the key design trend: Huiding is expected to start shipping ultrasonic fingerprints in 2024, becoming the second supplier of ultrasonic fingerprints for vivo, breaking Qualcomm's monopoly position.

The thinning design is a necessary function of the folding machine, because the ultrasonic fingerprint is significantly thinner than the optical fingerprint (about 1max 10 of the optical fingerprint), so it is one of the key components of the folding machine in the future.

Vivo X Fold 2 uses two ultrasonic fingerprints, and when the cost of ultrasonic fingerprints is reduced, other brands will follow this design trend in the future.

Qualcomm is currently the exclusive supplier of ultrasonic fingerprints at a cost of about $10. It is expected that after Huiding starts shipping next year, the cost of ultrasound will fall to about $4-5, which is conducive to increased permeability.

According to the history of the development of optical fingerprinting, when the cost dropped to about $3, the penetration of optical fingerprints in high-end mobile phones grew rapidly. I think ultrasonic fingerprints will probably replicate this trend, when even high-end phones that are not folding machines will start using ultrasonic fingerprints.

At present, the price of optical fingerprints is about $1.50, of which about $1-1.20 are camera modules purchased by Huiding, so in the future, even if the cost of ultrasonic fingerprints is similar to that of optical fingerprints, the profit contribution of ultrasonic fingerprints to Huiding is still significantly higher than that of optical fingerprints.

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