Outshining the downstream sector
Downstream market robust, smartphone component demand growing
We initiate coverage of the smartphone parts sector with Overweight as we forecast growth for both the downstream sector and parts suppliers. As for camera modules, we believe the multi-camera trend in smartphones will continue in 2020. If double- or triple-camera modules were the norm in 2019, 2020 will see a surge of triple- and quadruple- camera modules in smartphones, which means much higher demand for camera modules. For smartphone PCBs, increasing demand for camera modules will help boost camera module PCB demand while