Equity Analysis /

CN : Technology - Others - Huawei Seamless AI Life New Product Launch indicates stabilization of its consumer products unit

    Mark Po
    Mark Po

    Research Analyst

    24 December 2021
    Published byCGS-CIMB

    Huawei introduced a wide range of products at the Huawei Seamless AI Life New Products Launch event yesterday. The products, including a handset, notebook, vehicle, watch and eyewear, run on HarmonyOS and are designed to form an all-scenario, smart, fully connected ecosystem. We believe that Huawei has found ways (such as wearables and IoT) to sustain its consumer products business despite the challenges in its handset operations. The development of new hardware products is also helping Huawei’s software expansion. Huawei’s product roadmap, in our view, confirms that the trend that: a) AIoT and auto electronics are growth drivers in the hardware sector; and b) locally developed software remains the focus. We maintain the view that potential beneficiaries of the industry development trend are hardware names, including BOE Varitronix [0710.HK], Truly [0732.HK], FIH [2038.HK], Goertek [002241.CH], Sunny Optical [2382.HK], Xiaomi [1810.HK], Solomon Systech [2878.HK], FIT Hon Teng [6088.HK], Pentamaster [1665.HK], BYDE [0285.HK], Luxshare Precision [002475.CH]. The analysis in this report is based on industry and macro figures and may differ from the views of individual analysts, in some cases.