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]

Global Economic and Geopolitical Overview - The global capital markets have been impacted by negative factors such as the ongoing Russia-Ukraine conflict, the Israel-Hamas war, tensions in the Middle East, delayed interest rate cuts by the Federal Reserve, and tariffs imposed by the US and Europe on Chinese products. However, subsequent interest rate cuts by the European Central Bank and the Bank of England, as well as the Federal Reserve's first rate cut, have helped improve market sentiment [1][2]. New Stock Market Overview - In the first three quarters of 2023, the Hong Kong new stock market saw a total of 41 new listings, including one large-scale IPO, which significantly improved the number of new stocks and financing amounts compared to the same period last year [6][8]. - The financing amount for new stocks in Hong Kong reached 1,389 million HKD, with the number of new stocks slightly exceeding the multi-year low of the previous year [8][12]. - The top five new stocks in the first three quarters were led by one large-scale IPO, with total financing increasing from 1,134 million HKD in the same period last year to 3,197 million HKD this year [11][12]. Financing Scale Analysis - The average financing scale for new stocks on the main board has dropped to its lowest level in years, with no large-scale IPOs this year. The average financing scale for 'D' new stocks was 1,354,000 HKD [22][21]. - The total financing amount for the main board reached 1,371 million HKD, with notable contributions from companies like Meidi Group and others [21][20]. Performance of New Stocks - The average first-day return rate for new stocks this year was 9.7%, outperforming the previous year's average of 8.4% [17][16]. - The proportion of new stocks listed with performance losses has significantly decreased, with only 13% of new stocks listed at a price-to-earnings ratio above 10 times, compared to over 30% last year [16][14]. Market Sentiment and Subscription Analysis - The overall oversubscription performance of new stocks has improved significantly compared to the same period last year, with the top five oversubscribed new stocks showing substantial increases in oversubscription multiples [24][25]. - The market sentiment has been influenced by predictions regarding interest rate cuts by the Federal Reserve, leading to a more favorable environment for new listings [6][8].

Investment Rating - The report does not explicitly state an investment rating for the telecommunications industry. Core Insights - The telecommunications industry is experiencing rapid development driven by digital transformation and emerging businesses such as fixed broadband access, which is expected to continue as a major growth driver in 2024 [4][21]. - The report highlights the importance of 5G network deployment, which has significantly increased mobile phone user numbers and data consumption, thereby expanding the mobile communication market [84]. - The transition towards 6G technology is underway, with various countries and companies actively investing in research and development to secure a competitive edge in future communication technologies [86][93]. Summary by Sections Analysis of China's Three Major Telecom Operators - In the first half of 2024, the three major telecom operators in China generated revenue of RMB 328 billion from mobile data services, a decrease of 2.3% year-on-year, while fixed broadband services saw a revenue increase of 5.4% to RMB 136.5 billion [21]. - Emerging businesses, including IPTV, data centers, big data, cloud computing, and IoT, achieved revenue of RMB 227.9 billion, reflecting an 11.4% year-on-year growth [21]. 5G and User Growth - As of June 2024, the total number of mobile phone users in China reached 1.768 billion, with 5G users accounting for 52.4% of this total [50]. - The number of 5G base stations reached 3.917 million, marking a net increase of 535,000 from the previous year [50]. Financial Performance of Major Operators - China Mobile reported a revenue of RMB 546.7 billion for the first half of 2024, a 3.0% increase year-on-year, with a net profit of RMB 80.2 billion, up 5.3% [76]. - China Telecom's service revenue was RMB 246.2 billion, growing by 4.3% year-on-year, while net profit increased by 8.2% to RMB 21.8 billion [74]. - China Unicom's revenue reached RMB 197.3 billion, a 2.9% increase, with net profit rising by 11.3% to RMB 13.8 billion [75]. 6G Development - The report discusses the global race towards 6G technology, with China leading in patent applications, accounting for approximately 40.3% of the global total [93]. - The anticipated capabilities of 6G include data transmission speeds of up to 1 Tbps and ultra-low latency, which will enable new business models and market opportunities [86][94]. Emerging Technologies and Business Models - The report emphasizes the integration of AI, IoT, and edge computing in telecom services, which will drive innovation and efficiency across various sectors [84][94]. - Future business models will focus on subscription services for high-speed data transmission, remote medical services, and smart city solutions, leveraging advancements in 6G technology [96].

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - The global capital markets have been impacted by negative factors such as the Russia-Ukraine conflict, the Israel-Hamas war, and geopolitical tensions in the Middle East, which have affected investment sentiment. However, recent interest rate cuts by the European Central Bank and the Bank of England have improved market conditions [3][4]. Summary by Sections Global and Chinese Economic Overview - The report highlights that the global economy is expected to slow down in 2023, with the OECD predicting a successful soft landing. The Chinese central bank has implemented measures to support the real estate sector, including a reduction in the loan market quotation rate [4][3]. New Stock Market Overview - In the first three quarters of 2023, the global new stock market saw a significant increase in financing, with the top five exchanges including Nasdaq and the Hong Kong Stock Exchange. The financing amount for new stocks in Hong Kong reached 1,389 million HKD, showing a notable increase compared to the previous year [6][9][18]. Hong Kong New Stock Market Analysis - The Hong Kong new stock market experienced a total of 41 new stocks, with one large-scale IPO. The overall financing amount remained low compared to previous years, indicating a challenging market environment [11][14][19]. Performance of New Stocks - The average first-day return for new stocks in Hong Kong was 13.5%, which is higher than the previous year's average. The report notes that the performance of the top three best-performing new stocks improved compared to last year [25][26]. Industry Analysis of New Stocks - The technology and consumer sectors dominated the new stock market, with a significant increase in the proportion of new stocks from the technology sector. The report indicates that nearly 30% of new stocks were listed with losses, a decrease from over 40% in the previous year [21][41]. Market Sentiment and Subscription Analysis - The overall subscription performance for new stocks improved significantly, with the top five oversubscribed new stocks showing higher multiples compared to the previous year. This indicates a more favorable market sentiment towards new listings [36][40].

Deloitte. 德勤 德勤2024年 《施政報告》建議 因我不同 成就不凡 the No 1845 2024年9月20日 | --- | --- | --- | --- | |-------------------------|--------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|-------| | 德勤 2024 \n引言 \n附註 | 年《施政報告》建議 \n一、檢視公共財政 \n二、北都發展：推動「片區」先行先試 \n三、創新科技：普及人工智能 \n四、金融市場：加強引進資本 | 02 \n 03 \n 06 \n 08 \n 11 \n 15 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 德勤2024年《施政報告》 ...