Core Viewpoint - The 27th China International High-Tech Achievements Fair (CIHTAF) will be held from November 14 to 16, 2025, in Shenzhen, showcasing China's advancements in high technology and innovation [1][2]. Group 1: Event Overview - The CIHTAF has been held annually since 1999, marking its 27th edition this year, and has become a significant platform for showcasing China's high-tech achievements [2]. - The event will feature an exhibition area of 400,000 square meters, with 22 specialized exhibition zones focusing on key sectors such as artificial intelligence, semiconductors, and commercial aerospace [4]. - It is expected to attract over 450,000 professional visitors [4]. Group 2: Key Themes and Focus Areas - The fair will highlight major technological achievements from state-owned enterprises, including the global launch of China's space tourism project by the China Aerospace Science and Technology Corporation [4]. - The event will emphasize the integration of technology and industry, particularly in strategic emerging industries like AI and renewable energy [4][6]. - A "136" plan will be implemented to enhance trade, aiming for 10% international buyers, 30% provincial buyers, and 60% out-of-province buyers [5]. Group 3: International Participation and Activities - The fair will host over 30 domestic and international delegations, including regions like Hong Kong and countries such as Germany and Singapore [4]. - More than 200 activities will take place during the event, including professional forums and product launches, aimed at fostering international cooperation in technology [5]. Group 4: Economic and Innovation Impact - Shenzhen's R&D investment reached 223.66 billion yuan in 2023, accounting for 6.46% of its GDP, positioning it as a leader in national innovation efforts [6]. - The fair serves as a critical link between technology and capital, facilitating the growth of high-tech enterprises and contributing to Shenzhen's development as a global innovation hub [7].

Group 1 - The 27th China International High-Tech Achievements Fair (High-Tech Fair) will be held from November 14 to 16, 2023, at the Shenzhen International Convention and Exhibition Center, with an exhibition area of 400,000 square meters and over 200 professional activities planned [1][2] - The fair will focus on four dimensions: national key equipment, specialized topics, industrial chain integration, and regional and national participation, featuring over 40 central and state-owned enterprises and more than 30 countries and regions [2][3] - The fair aims to promote transactions with a "136" plan, targeting 10% international buyers, 30% provincial buyers, and 60% out-of-province buyers, and will include an international investment negotiation area [3][4] Group 2 - Nearly 5,000 enterprises are expected to showcase their latest technologies and products, with over 90% of exhibits being physical products, and more than 60 launch and roadshow events planned [4][5] - The fair will facilitate regional cooperation with a dedicated area for regional economic and technological innovation achievements, attracting over 10 cities and counties, and will feature a "Belt and Road" international cooperation exhibition area [5]

Core Points - The 27th High-Tech Fair will be held from November 14 to 16 in Shenzhen, showcasing the latest achievements and trends in high-tech from both domestic and international sources, aiming to facilitate global high-tech transactions and the application of new technologies [1][4] - The exhibition will cover a total area of 400,000 square meters with 22 specialized exhibition areas and is expected to attract over 450,000 professional visitors [4][5] - A notable highlight will be the global launch of China's space tourism project by the China Aerospace Science and Technology Corporation [5] Group 1: Exhibition Details - The fair will feature 22 specialized exhibition areas, including major equipment, artificial intelligence, semiconductors, consumer electronics, and low-altitude economy [4][5] - Over 200 professional activities will be held concurrently, including forums, product launches, and procurement matchmaking events [7][10] - The fair aims to achieve a high level of marketization, with over 90% of exhibits being physical products and more than 20% of exhibits being launched for the first time [10][11] Group 2: Focus Areas - The fair will focus on four dimensions: national key equipment, specialized topics, industrial chain integration, and regional and national participation [5][6] - Key exhibitors will include over 40 central and state-owned enterprises, showcasing significant technologies and products [5] - The event will also feature international participation from over 30 countries and regions, including Russia, Germany, and Singapore [5][12] Group 3: Transaction Promotion - The fair will implement a "136" plan, targeting 10% international buyers, 30% provincial buyers, and 60% out-of-province buyers [6] - An international investment negotiation area and an international buyer matching area will be established to facilitate transactions [6][7] - The expected transaction volume is anticipated to reach new heights, with participation from renowned investment institutions and companies [7][10] Group 4: Support for High-Tech Development - The fair aims to support the transformation of high-tech achievements into new productive forces, with a focus on high-quality projects [11][15] - Various procurement matchmaking areas will be set up to enhance international cooperation and facilitate supply-demand transactions [12][15] - The event will also promote regional cooperation, featuring a special area for economic and technological innovation achievements [12][15]

Core Points - The 27th China International High-tech Achievements Fair (High-Tech Fair) will be held in Shenzhen from November 14 to 16, with an exhibition area of 400,000 square meters and over 45,000 expected professional visitors [1][3] - Nearly 5,000 enterprises will showcase their latest technologies and products, with over 90% of the exhibits being physical items, and more than 20% of the exhibits will be debut or first-time showcases [1][6] Group 1: Key Highlights of the Fair - The fair will feature 22 specialized exhibition areas, including major equipment, artificial intelligence, semiconductors, consumer electronics, and commercial aerospace [3][4] - Notable participants include the China Aerospace Science and Technology Corporation, which will globally launch the Chinese space tourism project, along with over 40 central state-owned enterprises [4][5] - The fair will implement a "136" plan to enhance transactions, targeting 10% international buyers, 30% provincial buyers, and 60% from other provinces [5] Group 2: Focus Areas and Innovations - The fair will emphasize high-tech innovations, particularly in the ICT and software sectors, showcasing advancements in Harmony OS and Kunlun chip systems [4][6] - A focus on strategic emerging industries such as artificial intelligence, semiconductors, and new energy will be highlighted by companies like Honor and Kobot [4][6] - The event will also promote regional cooperation with a dedicated area for regional economic and technological innovation achievements, attracting participation from over 30 provinces and countries [7] Group 3: Economic Impact and Trade - Shenzhen's high-tech product import and export value reached 1.88924 trillion yuan in the first three quarters, accounting for 56.2% of the city's total trade, with a year-on-year growth of 11.2% [9] - The city aims to support high-tech enterprises in opening flagship stores and launching new products, with an expected addition of 1,200 new concept stores this year [8] - The technology import and export contract amount reached $3.57 billion, with a year-on-year increase of over 100%, indicating strong growth in the technology service outsourcing sector [10]

Core Insights - The automotive industry is evolving into a major platform for smart operating systems, alongside smartphones, with Huawei's Harmony OS gaining traction in this space [2][5] - Huawei and BAIC Group are intensifying their collaboration, with plans to invest 20 billion yuan over three years to develop the "Xiangjie" brand [2][4] Group 1: Product Launch and Features - The Xiangjie S9T, Huawei's first travel car, was officially launched on September 16, featuring advanced technologies such as Huawei's QianKun Intelligent Driving ADS 4 and the new Tuling platform [3][4] - The starting price for the Xiangjie S9T is set at 309,800 yuan, with over 40,000 pre-orders already received [3][6] Group 2: Production and Delivery - The Xiangjie factory in Beijing is currently ramping up production, with a goal of doubling its output, currently producing a new car every two minutes [3][4] - As of September 16, the total delivery of Harmony OS vehicles has surpassed 930,000 units, with expectations to exceed one million by late October to early November [6][8] Group 3: Ecosystem Expansion - The Harmony OS ecosystem is expanding rapidly, with over 90,000 vehicles delivered in August alone, and an average transaction price of 380,000 yuan [5][6] - Huawei's collaboration with multiple automakers, including Chery and Geely, has resulted in the establishment of five brands under the Harmony OS ecosystem [5][6] Group 4: Market Position and Strategy - Huawei's smartphone market share has rebounded, with Q2 2023 shipments reaching 12.5 million units, capturing an 18.1% share of the Chinese market [7][8] - The company aims to enhance the richness of its application ecosystem, targeting 100,000 applications by 2025 as a sign of maturity [8]

Summary of Chinasoft International (0354.HK) Conference Call Company Overview - **Company**: Chinasoft International (0354.HK) - **Industry**: IT Services and Solutions Key Points Business Performance - **1H25 Performance**: The company's gross margin (GM) was 22%, aligning closely with estimates of 22.1%, indicating a recovery in profitability compared to 2H24 [4][9] - **Revenue Trends**: Revenue for 1H25 was reported at RMB 8,507 million, a decrease of 6% from 1H24 but a 7% increase year-over-year [8][16] - **Net Income**: Net income for 1H25 was RMB 316 million, reflecting a 40% increase from 2H24 and a 10% increase year-over-year [8][16] Strategic Initiatives - **AI Transformation**: The company is focusing on AI transformation for its ERP business, aiming to enhance efficiency and margins through AI Agent outsourcing services [3][9] - **AI Projects**: Over 300 AI assistant projects have been implemented across various sectors including manufacturing, finance, healthcare, and energy in 1H25 [3][9] Market Position and Technology - **Harmony OS**: The management highlighted the expected rapid revenue growth from Harmony OS over the next three years, supported by favorable policies and technology advantages [2][9] - **Technology Edge**: Harmony OS is noted for its low latency of less than 3μs and the ability to connect over 200 devices, making it suitable for industries with high data security requirements [2][9] Financial Outlook - **Earnings Revisions**: The company has revised its net income estimates downward for 2025E, 2026E, and 2027E by 17%, 31%, and 30% respectively, due to lower revenue expectations and gross margins [9][10] - **Future Projections**: Despite the revisions, double-digit revenue growth is still anticipated for 2026 and 2027, driven by the expansion into intelligent cloud services and solutions [9][10] Valuation and Rating - **Current Valuation**: The stock is trading at 18x 2026E PE, close to the target PE multiple of 17x, indicating that positive factors are largely priced in [1][17] - **Target Price**: The target price is set at HK$6.3, reflecting a downside potential of 5.8% from the current price of HK$6.69 [19][17] - **Rating**: The company maintains a Neutral rating due to concerns over growth visibility amid soft IT services budgets [17][18] Risks - **Key Risks**: Include variability in customer diversification, recovery of IT services budgets, R&D investment levels, and product mix upgrades [18][9] Additional Insights - **Operational Efficiency**: The company has improved its operating efficiency, leading to a lower operating expense ratio than expected [4][9] - **Market Context**: The overall China Software sector is experiencing a re-rating driven by generative AI, which may influence future valuations [10][17]

Investment Rating - The investment rating for Chinasoft International is Neutral, with a target price of HK$5.50, reflecting a potential upside of 11.8% from the current price of HK$4.92 [10][13]. Core Insights - The company is optimistic about growth driven by the HarmonyOS ecosystem and generative AI opportunities, while traditional IT services remain modest [1][8]. - Management emphasizes the transition from traditional IT services to intelligent cloud services, which is expected to enhance profitability through higher gross margins and efficiency improvements [7][8]. Summary by Sections HarmonyOS Ecosystem - Chinasoft International is collaborating closely with Huawei on HarmonyOS initiatives, focusing on application migration and developing Harmony-version virtual machines. Increased adoption of Harmony PCs is anticipated to create more business opportunities [2][3]. Generative AI Opportunities - As a full-stack AI service solutions provider, the company is capitalizing on the growing demand for generative AI in China. Their services span AI infrastructure, foundation models, and application software development. The establishment of AI computing centers with local governments is also highlighted [3][7]. 2025 Outlook - Management expects traditional IT services to see better growth from sectors such as financial institutions, internet companies, automotive, and state-owned enterprises. The company anticipates a higher profit level due to the expansion of intelligent cloud services and AI deployment [7][8].

Investment Rating - Rating: Overweight [1] Core Viewpoints - The launch of Harmony PC enhances Huawei's '1+8+N' strategy, positioning it to lead in the AI era and the Internet of Everything [4][6] - Harmony PC reconstructs the OS from the kernel, with a focus on performance, security, and distributed features [7] - Harmony OS ecosystem has surpassed 1 billion devices, with over 7.2 million developers and more than 20,000 native applications [9] Summary by Sections Investment Recommendations - Recommended targets include Chinasoft International, Isoftstone Information Technology, Newland Digital Technology, Jiangsu Hoperun Software, and Talkweb Information System; related targets include Beijing Oriental Jicheng, Jwipc Technology Co., Ltd., and Shijiazhuang ChangShan BeiMing Technology [4][6] Harmony OS Development - Harmony OS is built on a robust foundation with the Harmony kernel, Ark Engine for performance enhancement, and a distributed architecture for resource sharing [7] - The ecosystem includes over 2000 integrated applications, with 150+ dedicated PC applications already adapted [4][9] AI and IoT Integration - Harmony AI sets a new standard for smart computing, enabling system-level assistants and efficient collaboration across devices [8] - Harmony PC supports over 1000 peripheral devices, breaking hardware barriers and enhancing user experience [8] Ecosystem Growth - Huawei's ecosystem has reached over 1 billion devices, supported by a significant investment in the Harmony Ecosystem Partner Program [9] - The dual-track strategy allows compatibility with mainstream Windows applications, reducing user migration costs [9]

Group 1: Major Asset Restructuring - Xiangcai Co. and Shanghai Dazhihui Co. are planning a major asset restructuring through a share swap, with Xiangcai issuing A-shares to absorb Dazhihui [2][3] - The stock of both companies will be suspended from trading starting March 17, 2025, for a period not exceeding 10 trading days [2] - As of the latest closing, Xiangcai's total market value is 19.7 billion, while Dazhihui's is 18.055 billion, totaling approximately 37.8 billion [3] Group 2: Securities Industry Mergers - The securities industry is experiencing a wave of mergers, with significant room for consolidation driven by policy guidance and internal motivations [3][4] - Recent merger cases include Zhejiang Merchants + Guodu, Western + Guorong, and Guoxin + Wanhua, indicating diverse integration pathways [3] - The current valuation of the brokerage sector is at 1.6 times PB, suggesting limited downside and potential for upward movement [4] Group 3: Huawei's Harmony OS Developments - Huawei has launched a new laptop pre-installed with Linux, potentially signaling a shift towards its own Harmony OS for future PC products [5] - Harmony OS has gained a 17% market share in China, surpassing Apple's iOS to become the second-largest operating system in the market [6] - The official release of Harmony OS NEXT (5.0) is expected in 2024, with a goal of achieving 100,000 applications as a sign of ecosystem maturity by 2025 [7] Group 4: Investment Opportunities in Harmony Concept Stocks - 229 Harmony concept stocks have seen an average increase of 23.53% this year, outperforming the Shanghai Composite Index [8] - Notable low-valuation stocks include Dahua Technology with a rolling P/E ratio below 10, attracting significant institutional investment [8] - Six low-valuation concept stocks are projected to have net profit growth rates exceeding 20% in 2025 and 2026, indicating strong future potential [8]