1CowellStrongBuySectorITHardware-中投证.PDF

[Table_MainInfo] Initiation Research Report 18 April 2015 Cowell （1415 HK ） Strong Buy Sector ：IT Hardware [Table_Title] [Table_Author] Research Analyst Benefit from the Pixel Upgrade Cycle Dennis Chien [Table_Summary] (852) 3983 0835 Cowell is principally engaged in the design, development, manufacture and sale, dennischien@china-invs.hk on an OEM basis, of a variety of camera modules that serve as critical components for smartphone, multimedia tablets and other mobile devices with camera functions. Investment Highlights ：  Pixel Upgrade Cycle Benefit Camera Modules Suppliers. We expect major smartphone vendors will upgrade pixel resolution of their camera module in the coming new models, especially the front-end camera. Due to the fact that pixels upgrade means the whole module will become larger because of bigger sensor size and thicker lens, yet smartphone vendors wish to keep their phone at a thinner design, esp Apple. Hence, we believe the CCM suppliers are required to input more RD, time and related machinery adjustments to be able to package all co