Investment Rating - The industry investment rating is "Positive" (maintained) [7] Core Insights - The upcoming Huawei Developer Conference (HDC) from June 20-22, 2025, marks a new phase in the domestic operating system landscape, with a focus on Ascend computing power, the HarmonyOS ecosystem, and robotics [1][2] - Historically, HDC has been a key event for Huawei to launch significant products, and it is anticipated that HarmonyOS 6.0 will be showcased at this year's conference [2] - The conference agenda emphasizes HarmonyOS, Huawei Cloud, and AI applications, aiming to empower developers and enhance the developer ecosystem, which will further promote the rise of the HarmonyOS in the domestic market [3] Summary by Sections Section: Developer Conference Highlights - The HDC will feature sessions on HarmonyOS, CloudMatrix 384 super-node technology, and AI application development, showcasing Huawei's latest products and technologies [3] Section: HarmonyOS Ecosystem - HarmonyOS has become the second-largest operating system in the Chinese market, with a brand recognition rate of 91%, over 7.2 million registered developers, and more than 1 billion users across various devices [4] - The ecosystem includes over 20,000 native applications and meta-services, covering 18 verticals, and aims to meet 99.9% of user usage time needs [4] Section: Related Companies - Companies to watch include Runhe Software, Softcom Power, Dongfang Zhongke, Zhiwei Intelligent, Chipsea Technology, Changshan Beiming, Jiulian Technology, Sichuan Changhong, and Tuwei Information [5]

Core Viewpoint - Huawei is expected to continue innovating across various smart terminal products by 2025, with a focus on hardware forms, HarmonyOS upgrades, and product line layout, particularly highlighting the first HarmonyOS foldable PC, foldable smartphones, and mid-to-low-end smartphones [1] Mobile Phones - Huawei's smartphone shipment is projected to reach 60-65 million units in 2025, with a focus on HarmonyOS upgrades, AI implementation, and low-end market expansion [2] - In 2024, Huawei's smartphone shipments were approximately 48-49 million units, reflecting a year-on-year increase of 37% [2] - Key models for 2025 include Mate series (18-20 million units), Pura series (12-13 million units), Nova series (18-20 million units), and Enjoy series (12-14 million units) [2] - Foldable smartphone shipments are expected to exceed 600,000 units, with around 200,000 units for vertical foldable models and 400,000 units for horizontal foldable models [2] PC/PAD - Huawei is anticipated to launch its first HarmonyOS PC in Q2 2025, along with a foldable 2-in-1 PC/PAD product [3] - In 2024, Huawei's global tablet shipments were approximately 1.074 million units, a year-on-year increase of 29.3%, ranking third globally and first domestically [3] - The combined annual shipments of Huawei's tablets and PCs are expected to exceed 15 million units, indicating significant penetration potential for foldable PA/PAD products [3]