Hong Kong-listed Apple suppliers staged a significant rally during Wednesday’s session, led by camera module specialist Cowell e Holdings (01415.HK) with a nearly 6% advance. The collective upswing follows growing optimism about upcoming iPhone 16 series demand and anticipated supply chain order adjustments.
Optical Component Leaders Outperform
Sector bellwethers showed strong participation in the rally:
- Sunny Optical (02382.HK) climbed over 3% on reports of increased high-end lens shipments
- AAC Technologies (02018.HK) gained nearly 3% amid speculation about upgraded speaker components
- Q Technology (01478.HK) rose 3% following new Android flagship camera module wins
Market Drivers and Industry Developments
The buying momentum reflects several positive developments:
- Supply Chain Signals: Taiwan’s Pegatron recently guiding for stronger-than-expected Q3 sales
- Product Cycle Optimism: Bloomberg reporting Apple accelerating AI feature development for fall launch
- Valuation Recovery: Sector trading at 12-month forward P/E of 14x versus 18x historical average
Analyst Commentary
Morgan Stanley analysts noted:
- Cowell’s rally likely reflects its increasing share in iPhone front camera modules
- Sunny Optical benefiting from both Apple and Huawei supply chain expansion
- Component makers showing improved pricing power after inventory corrections
Trading volume in Apple concept stocks reached HK$2.6 billion by midday, accounting for 6.5% of total Hong Kong market turnover. The sector has now gained 11% over the past month, outperforming the Hang Seng Tech Index’s 7% return during the same period.
Market participants appear to be positioning for a stronger second-half smartphone cycle, with particular focus on suppliers demonstrating technological differentiation in camera, acoustic, and display technologies. The rally comes despite ongoing concerns about consumer electronics demand in China, suggesting investors may be betting on global market share gains by Chinese component makers.
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