[hot stocks] rise and stop again! Hongmeng concept stocks collectively contribute to the deep benefit of domestic chip manufacturers

Today, Hongmeng's concept stock rose again across the board. By the close of trading in the afternoon, Hongmeng's concept section was up 8.5%, and many of its stocks were up by the daily limit. It is reported that on June 2, Huawei officially launched the Hongmeng OS system and released three models of hardware equipped with the Hongmeng system. Through distributed technology, Hongmeng OS realizes the mutual sharing of hardware capabilities, provides a development of multi-terminal deployment, and provides a new ecology for the Internet of everything. Huawei expects the number of Hongmeng OS connected devices to exceed 300m by the end of 2021, of which 100m will come from third-party partners. China Galaxy Securities pointed out that Hongmeng OS is expected to achieve corner overtaking in the era of the Internet of everything, promoting the rapid development of the ecology of the Internet of things in China, and relevant domestic software, modules, chips and smart hardware manufacturers are expected to benefit deeply.

From the perspective of the specific downstream direction, China Galaxy Securities pointed out that the growth rate of the Internet of things in China is higher than the global average, second only to emerging markets with a small base such as Latin America. According to IDC, the market size of the Internet of things in China will reach 178.8 billion US dollars by 2025, ranking first in the world, accounting for 25.9%. After the initial start-up period of "letting a hundred flowers blossom", the smart home and Internet of things industry will gradually form an industrial cluster centered on Huawei, Xiaomi, Google, Apple and other ecological manufacturers. Considering that the ununified gateway standards, independent system solutions and decentralized downstream applications make the connection and use more complex, the communication modules with strong versatility in the early stage of the industry outbreak are expected to be the first to benefit.

According to related reports, since Huawei launched its HarmonyOS2 system on June 2, the number of HarmonyOS upgrades has exceeded 10 million in a week. At the same time, Hongmeng was also sought after by fund companies and the central bank, announcing that its APP fully supports Huawei Hongmeng system.

At present, Huawei has donated (OpenHarmony), the core infrastructure part of the Hongmeng system, to the "Open Atomic Open Source Foundation" under the Ministry of Industry and Information Technology. Each company can equally obtain the relevant code from this organization and make products according to the needs of their own business. Guohai Securities pointed out that the key to the success of the operating system lies in the application ecology, so it is very important to get the support of the terminal manufacturers of the Internet of things. Through the open source of infrastructure and the strong support of national policies, the introduction of Hongmeng system terminal manufacturers is expected to be accelerated.

Cinda Securities believes that Hongmeng OS is the last successful attempt to unify the operating system, while the connection mode continues to evolve towards unification. As early as 2019, Google, Apple and Amazon joined Zigbee to form the CHIP Alliance, and released a new connection protocol "Matter" in May 2021, unifying Wi-Fi, Bluetooth, Thread and other connection protocols. It can be predicted that the unified era of, IoT ((Internet of things) has accelerated and will usher in a stronger outbreak in the future. At the current point of time, we believe that the chip end is a worthwhile investment sector before the advent of the IoT era.