25 February 2016 Asia Pacific Equity Research Electronic Equipment & Instruments (Technology Hardware & Equipment) Asian Handset Supply Chain Research Analysts SECTOR REVIEW Randy Abrams, CFA 886 2 2715 6366
[email protected] Mobile World Congress 2016: A long-term Jerry Su evolution in hardware 886 2 2715 6361
[email protected] Figure 1: Mediatek’s share price performance—historical trend around MWC Pauline Chen vs sales YoY 886 2 2715 6323 Mediatek stock performance entering/exiting MWC (T-30 as benchmark)
[email protected] 20% 60% 10% 30% Keon Han 0% 0% 82 2 3707 3740 -10% -30%
[email protected] -20% -60% Thompson Wu 2010 2011 2012 2013 2014 2015 2016 T-5 T+5 T+30 Sales YoY (%) 886 2 2715 6386
[email protected] Source. Company data, Bloomberg consensus, Credit Suisse estimates Mobile World Congress (MWC), the wireless industry’s largest annual event, took Sam Li place this week in Barcelona. Our team met chipset, component and device 852 2101 6775
[email protected] companies, spanning tier 1, branded Chinese, and whitebox vendors. In this note, we profile Samsung, Lenovo, Asustek and Mediatek, and their implications for the Derrick Yang 886 2 2715 6367 Asian supply chain. The following are the key summary points:
[email protected] ■ Flagships led by Samsung’s fresh new look. Samsung’s unpacked event Kyna Wong set the tone for the MWC where peripherals (VR, 360 Degree Cameras) 852 2101 6950 shifted some focus from only modest upgrades to the flagship smartphone.