Investment Rating - The report does not explicitly provide an investment rating for the investment management industry Core Insights - The investment management industry is expected to face significant risks and opportunities in 2025, with a focus on digital transformation and the integration of AI technologies [10][28][86] - The shift towards low-cost investment products, particularly ETFs, is reshaping the competitive landscape, with active mutual funds experiencing significant outflows [14][34] - The growth of alternative investments, such as private credit and evergreen funds, is anticipated to drive asset management scale [22][41] Summary by Sections Current Performance Trends - The investment management industry is experiencing mixed results, with alternative investments slowing down and ETFs gaining momentum [11][12] - Active mutual funds have seen net outflows exceeding $1.8 trillion over the past two years, while passive investment vehicles continue to attract capital [14][15] Product and Distribution Innovations - The report highlights the importance of incorporating alternative investment products and leveraging technology, particularly AI, to enhance sales and distribution strategies [3][53] - Private credit assets have surpassed $2.1 trillion in 2023, with a double-digit growth rate expected to continue [22][41] - The rise of evergreen funds is diversifying the investment landscape, with significant growth in the number of funds available [22][41] AI Deployment and Digital Transformation - Investment management firms are increasingly adopting AI technologies to improve operational efficiency and customer engagement [24][42] - The report notes that while many firms are exploring AI applications, only a small percentage have implemented them on a large scale [24][45] - Successful integration of AI is expected to differentiate firms in terms of revenue growth and operational efficiency [28][86] Risks and Challenges - The industry faces rising risks associated with digital transformation, including cybersecurity threats and regulatory pressures [48][64] - The shift towards direct indexing and separately managed accounts (SMAs) poses strategic and financial risks for traditional investment management firms [84] - Mergers and acquisitions are being utilized to counteract the risks of disintermediation and to enhance product offerings [84]

Investment Rating - The report indicates a positive outlook for the travel industry, particularly for high-income and younger travelers, suggesting potential investment opportunities in travel-related sectors [6][7][11]. Core Insights - The 2024 holiday travel season is expected to see an increase in both the number of trips and spending compared to 2023, with 49% of Americans planning to travel, up from 48% [29][130]. - High-income Americans are driving the increase in travel spending, with 35% planning to take three or more trips, compared to 19% in 2023 [7][11]. - The average number of trips planned has risen from 1.88 in 2023 to 2.14 in 2024, indicating a trend towards longer and more frequent travel [51][130]. Summary by Sections Travel Incidence and Spending - The percentage of travelers planning to significantly increase their budget for their longest trip has jumped to 28%, up from 18% in 2023, with millennials and high-income individuals leading this trend [11][55]. - High-income travelers are expected to account for over half of paid lodging travelers, increasing from 43% in 2023 to 52% in 2024 [12][50]. Travel Characteristics - Travelers are increasingly opting for upgraded experiences, with a notable rise in spending on upgraded airfare and luxurious lodging [20][41]. - The share of travelers planning at least one trip of a week or longer has reached its highest point in four years, reflecting a shift towards longer vacations [76]. Generational and Income Trends - Gen Z's share of holiday travelers has increased from 8% in 2023 to 14% in 2024, while 45% of travelers have a household income of over $100K, up from 38% [26][48]. - Millennials are particularly inclined to increase their travel budgets, with 39% planning to spend more this holiday season [11][55]. Travel Booking and Research - There is a notable shift in how travelers are booking their trips, with fewer intending to use online travel agencies (OTAs) and a growing interest in booking directly through airlines [139][161]. - The use of social media and generative AI tools for trip planning has increased significantly, especially among younger generations [100][102].

Deloitte. Is Generative AI changing the game for medtech? To assess where medtech companies have realized value2 from AI and GenAI and what could be next, the Deloitte Center for Health Solutions surveyed 85 leaders from medtech organizations during the summer of 2024 and conducted follow-up interviews. We found that: Is Generative AI changing the game for medtech? 4 Using AI to transform processes is not new to medtech organizations (see sidebar, "AI in action at medtech companies"). But beyond this anecdo ...

Group 1 - The report rates the automotive electronics industry as a high-growth sector, particularly focusing on smart cockpit technologies [1][2] - The core viewpoint emphasizes the increasing demand for high-end automotive displays, especially in the context of the rapid growth of new energy vehicles in China, with a notable milestone of 10 million annual production [1][2] - The report highlights the company's position as a leading supplier of in-car display components for major automotive brands, including NIO and Li Auto, showcasing its strong market presence and strategic partnerships [2] Group 2 - The report identifies the biotechnology sector, particularly in nucleosides and nucleotides, as a rapidly evolving field with significant growth potential [6][7] - The core viewpoint stresses the company's commitment to addressing domestic gaps in sugar science and nucleic acid synthesis, leveraging advanced technologies to enhance production efficiency and product quality [6][7] - The report notes the company's achievements in establishing a comprehensive enzyme synthesis platform and its recognition as a high-tech enterprise, indicating a strong competitive position in the market [7] Group 3 - The report highlights the environmental technology sector, particularly in water treatment and soil remediation, as a critical area for innovation and investment [33][34] - The core viewpoint emphasizes the company's advanced technologies and certifications, which position it as a leader in environmental solutions [33][34] - The report mentions the company's successful projects and recognition from government bodies, indicating its strong reputation and operational capabilities in the environmental sector [34] Group 4 - The report discusses the advancements in optical sensing technology, particularly in high-precision gas sensors and optical analysis instruments, as a growing market segment [65][66] - The core viewpoint underscores the company's focus on innovation and its commitment to developing cutting-edge technologies for various industrial applications [65][66] - The report highlights the company's achievements in obtaining numerous patents and certifications, reflecting its strong R&D capabilities and market leadership [66] Group 5 - The report identifies the semiconductor industry, particularly in integrated circuit design, as a key area for growth and investment [70][71] - The core viewpoint emphasizes the company's expertise in analog and mixed-signal ICs, which are essential for various applications across multiple sectors [70][71] - The report notes the company's strategic partnerships and market reach, indicating its potential for expansion and innovation in the semiconductor space [71]

Industry Investment Rating - Hardware and infrastructure are currently in focus, with enterprise IT spending expected to shift accordingly [1] Core Perspectives - Hardware is reclaiming the spotlight as AI demands specialized computing resources, leading to advancements in chips and integration into end-user devices [51] - AI is transforming the IT function, with generative AI driving a shift from virtualization to AI-driven automation and innovation [51] - Core systems, particularly ERP platforms, are increasingly seen as critical assets, with the global ERP market projected to grow at 11% from 2023 through 2030 [18] Hardware and AI Integration - AI-embedded PCs are expected to future-proof technology infrastructure, reduce cloud computing costs, and enhance data privacy [120] - The market for chips used only for generative AI is projected to reach over $50 billion in 2024 [120] - AI hardware is poised to revolutionize the Internet of Things and robotics, with advancements in energy efficiency and sustainability [51] AI and IT Transformation - Generative AI is driving a shift in IT from a cost center to a competitive differentiator, with 60% of US-based technology leaders now reporting directly to their CEOs [13] - AI is expected to fundamentally change the role of IT, making it leaner but with a wider purview [13] - Enterprises are increasing investments in data-life-cycle management due to generative AI, with 75% of organizations surveyed reporting such increases [13] Spatial Computing - Spatial computing is breaking down information silos and creating more natural ways for workers and customers to interact with information [51] - The spatial computing market is projected to grow at a rate of 18.2% between 2022 and 2033, with applications in healthcare, manufacturing, logistics, and entertainment [63] - AI advancements are expected to lead to seamless spatial computing experiences and improved interoperability [51] AI Models and Applications - Enterprises are moving from large-scale AI projects to AI everywhere, with a focus on small language models, multimodal models, and agentic AI [87] - Small language models can be trained on smaller, highly curated data sets to solve specific problems, reducing time and effort [87] - Agentic AI is expected to transform how we work and live, with AI agents capable of executing discrete tasks autonomously [27] Robotics and Automation - Robotics and automation are becoming mainstream, with smart factories using computer vision, sensors, and data to build machines that can learn and improve [3] - Humanoid robots are expected to perform a broad variety of tasks, from cleaning sewers to performing surgeries, addressing labor shortages and freeing up human time for creative tasks [145] - The integration of AI into robotics could revolutionize manufacturing and other physical labor industries [135]

Investment Rating - The report emphasizes the increasing importance of cybersecurity as a strategic business value, indicating a positive investment outlook for organizations that prioritize cybersecurity initiatives [11][14][42]. Core Insights - Cybersecurity is becoming increasingly integrated into business strategy, with a strong correlation between cybersecurity maturity and organizational confidence in addressing cybersecurity threats [17][18][40]. - The role of Chief Information Security Officers (CISOs) is evolving, with their influence growing within the C-suite and their involvement in strategic discussions around technology capabilities [82][87]. - Organizations with higher cybersecurity maturity are expected to achieve significantly better business outcomes compared to their peers [18][20]. Summary by Sections 1. Overview of Cybersecurity's Strategic Role - The report highlights that cybersecurity is now recognized as a critical component of business strategy, moving beyond its traditional IT roots [15][11]. - A significant portion of organizations (86%) is actively implementing measures to enhance their cybersecurity strategies [47][49]. 2. Methodology - The report is based on a survey of nearly 1,200 cybersecurity decision-makers across various industries and regions, reflecting a diverse range of insights [32][14]. 3. Key Findings - There is a strong link between cybersecurity maturity and the confidence of C-level executives in managing cybersecurity risks, with 82% confidence in high maturity organizations compared to lower levels in others [17][16]. - Organizations are increasingly integrating cybersecurity into their digital transformation initiatives, recognizing its importance in achieving business objectives [28][39]. 4. Future Outlook - The report anticipates that organizations will continue to increase their cybersecurity budgets, with 57% of respondents expecting budget increases in the next 12 to 24 months [54][55]. - The integration of cybersecurity with other business functions is seen as essential for achieving strategic goals and enhancing overall resilience [55][59]. 5. CISO's Evolving Role - The influence of CISOs is growing, with many reporting directly to CEOs and participating in strategic discussions about technology and business risks [83][87]. - Despite the increased focus on cybersecurity, only 34% of C-level executives express high confidence in their ability to effectively manage cybersecurity challenges [91][90].

Investment Rating - The report does not explicitly provide an investment rating for the industry or companies involved. Core Insights - The report highlights the rapid growth of high-tech companies in Shenzhen, with significant revenue growth rates observed across various sectors, particularly in hardware, life sciences, and software [9][11][16]. - The Shenzhen economy is recovering and expanding, with a GDP growth of 6.0% in 2023, outperforming both Guangdong province and the national average [25][30]. - The report emphasizes the importance of innovation and R&D investment among Shenzhen companies, with a notable percentage of firms allocating substantial resources to technology development [41][46]. Summary by Sections 2024 Deloitte Shenzhen High-Tech High-Growth 20 Strong List - The top companies include Shenzhen Geling Jingrui Vision Co., Ltd. with a revenue growth rate of 816.3%, followed by Shenzhen Beimei Pharmaceutical Co., Ltd. at 753.4% and Shenzhen Lemon Photon Technology Co., Ltd. at 731.8% [9][10]. 2024 Deloitte Shenzhen Tomorrow's Stars List - This list features emerging companies such as Baichuang New Energy Technology (Shenzhen) Co., Ltd. and City Light (Shenzhen) Unmanned Driving Co., Ltd., showcasing innovation in clean technology and advanced manufacturing [16][18]. Background of Deloitte High-Tech High-Growth Project - The project aims to identify and recognize high-growth, innovative companies in Shenzhen, contributing to the broader Deloitte China High-Tech High-Growth 50 Strong series [20][21]. Overview of Shenzhen's Economic and Technological Environment - Shenzhen's economy is characterized by a strong recovery, with strategic emerging industries contributing significantly to GDP, particularly in digital and low-carbon sectors [25][30][33]. CEO Survey Overview of Shenzhen High-Tech Companies - The survey indicates a strong focus on R&D, with many companies investing heavily in artificial intelligence, cloud computing, and automation technologies [41][46]. Challenges and Opportunities - Companies face challenges such as high R&D costs and talent shortages, but there is a strong commitment to sustainable development and innovation [49][52]. Future Outlook - Despite economic uncertainties, a significant portion of companies plan to expand operations, indicating confidence in the market and growth potential [64][66].

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - The retail industry in China is undergoing significant transformation driven by generative artificial intelligence (AI), which is reshaping operational models and competitive landscapes. The technology is enhancing various aspects of retail, including marketing, supply chain management, and customer service [20][19][24]. - Generative AI is expected to create unprecedented opportunities and challenges for retail businesses, necessitating a careful evaluation of costs and alignment with long-term strategic goals [20][19]. - The report emphasizes the importance of a rational and cautious approach to investment in generative AI, highlighting the need for businesses to avoid over-investment while ensuring alignment with their strategic objectives [50][49]. Summary by Sections Introduction - The introduction outlines the rapid digital transformation in the retail sector, accelerated by generative AI, which is expected to bring about significant changes in operational efficiency and customer engagement [17][19]. Current State of Generative AI - Generative AI has evolved significantly, with applications across various industries, including retail. The technology is characterized by its ability to generate new content and insights from existing data, enhancing decision-making processes [64][65]. Applications of Generative AI in Retail - The report identifies numerous applications of generative AI in the retail sector, such as personalized marketing, intelligent customer service, supply chain optimization, and risk management. These applications are designed to improve efficiency and customer experience [108][109]. - Specific use cases include knowledge assistants, automated ordering systems, and predictive maintenance tools, which collectively enhance operational capabilities and customer interactions [108][109]. Recommendations for Enterprises - The report suggests that enterprises should focus on building a robust generative AI architecture that includes knowledge bases, model selection, and scenario development to maximize the technology's effectiveness [46][47]. - It also emphasizes the need for businesses to foster an innovative organizational culture that encourages learning and adaptation to the evolving landscape of generative AI [47][49]. Conclusion - The conclusion reiterates the transformative potential of generative AI in the retail industry, urging companies to stay informed about technological advancements and to strategically integrate these innovations into their operations [19][20].

Investment Rating - The report does not explicitly provide an investment rating for the packaging industry. Core Insights - The Chinese packaging industry is a crucial sector supporting the national economy, impacting various fields from daily consumer goods to high-end industrial products [5][14]. - Innovation is increasingly emphasized in the packaging industry, with downstream industries expecting material innovations to enhance consumer experience, product protection, and cost optimization [8]. - The trend towards green packaging is gaining momentum, driven by environmental awareness and policy guidance, with a focus on material reduction to minimize resource consumption [8][34]. - The rapid development of digital and intelligent technologies presents new opportunities for the packaging industry, with digital packaging being widely applied in consumer interaction, precise marketing, and anti-counterfeiting [8][39]. Summary by Sections Industry Overview - The packaging industry in China has over 10,000 companies, with total revenue nearing 1.2 trillion yuan as of 2023 [14]. - The industry is characterized by a complete supply chain, from raw material supply to packaging design, manufacturing, and sales services [16]. Downstream Customer Insights - 70% of surveyed customers expect an average annual business growth of 5% or more over the next 3-5 years, with nearly 30% anticipating growth above 10% [19]. - 50% of respondents believe consumption will diversify significantly in the future, indicating a shift from price-driven to quality-driven consumer behavior [20]. Packaging Materials - The main types of packaging materials in China include plastic films (35.7%), paper/boxes (25.3%), and plastic containers (15.3%) [26]. - There is a high expectation for innovation in packaging materials, with a current satisfaction score of 6.4 out of 10, indicating room for improvement [29]. Green Packaging - 80% of respondents have set clear green goals, driven by regulatory requirements and market demands [35]. - The focus on reducing packaging weight and utilizing recyclable materials is aligned with the 30/60 carbon goals set by China [37]. Digital and Intelligent Packaging - Digital packaging is seen as a key area for enhancing brand interaction and consumer engagement, with 88% of respondents recognizing its value [39]. - The integration of digital technologies into packaging processes is expected to optimize marketing strategies and improve supply chain management [40]. Packaging Equipment - The report highlights a shift towards digitalization and automation in packaging equipment, with customers seeking customized and flexible solutions [43][44]. - The demand for local equipment is increasing, with 39% of surveyed companies preferring domestic suppliers for their packaging needs [54].

Industry Overview - The report provides a comprehensive review and outlook on the development of China's banking industry in the first half of 2024, focusing on macroeconomic and financial conditions, as well as the performance of listed banks [1][2] - The banking industry is undergoing significant transformation, with a focus on innovation and quality improvement to build a solid foundation for future growth [1] Macroeconomic and Financial Conditions - In the first half of 2024, China's GDP growth rate was 5.0%, with monetary policy adjustments influencing credit and deposit growth [10][14] - The M2 growth rate was 8.1% year-on-year, while the growth rate of total social financing was 6.1%, reflecting a stable monetary environment [15][16] Performance of Listed Banks - Listed banks achieved a total profit of 362.2 billion yuan in the first half of 2024, representing a year-on-year growth of 7.3% [19] - The net interest margin (NIM) of listed banks continued to decline, with the average NIM dropping to 1.64%, down by 21 basis points year-on-year [41] - The return on assets (ROA) and return on equity (ROE) of listed banks were 0.79% and 10.69%, respectively, showing slight improvements compared to the previous year [34][35] Key Business Observations - The loan-to-deposit ratio of listed banks reached 63.9%, indicating a stable funding structure [21] - The non-performing loan (NPL) ratio of listed banks stood at 1.54%, with a provision coverage ratio of 277%, reflecting strong risk management capabilities [22] - Digital transformation and green finance were key areas of focus, with banks increasing their investments in technology and sustainable finance initiatives [24][25] Hot Topics and Future Outlook - The report highlights the importance of digital banking and the integration of ESG (Environmental, Social, and Governance) principles into banking operations [24][25] - The banking industry is expected to continue its transformation, with a focus on improving asset quality, enhancing risk management, and exploring new growth opportunities in areas such as green finance and digital banking [24][25][27] Key Players in the Industry - The report provides detailed analysis of major banks, including Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), and Bank of China (BOC), among others [8][9] - These banks demonstrated strong performance in terms of profitability, asset quality, and digital transformation, positioning them as leaders in the industry [31][32][33]