The Zhitong Finance App learned that Galaxy Securities released a research report saying that on January 18, Beijing time, Huawei held the “Hongmeng Ecological Sails” press conference in Shenzhen to announce that the Harmony OS NEXT Hongmeng Galaxy Edition is fully open to developers. At the same time, it will launch a developer beta version in Q2 2024 and a commercial version in Q4 2024. Hongmeng has officially entered the stage of complete autonomy, which is conducive to the development of ecological applications, and the industry will open up trillion dollars in market space. Recommended attention: 1) Software and outsourcing vendors: Softcom Power (301236.SZ), etc.; 2) Terminal and application vendors: Zhongke Chuangda (300496.SZ), etc.

Incidents:

On January 18, Beijing time, Huawei held the “Hongmeng Ecological Sails” press conference in Shenzhen to announce that the Harmony OS NEXT Hongmeng Galaxy Edition is fully open to developers. At the same time, the developer beta version will be launched in Q2 2024 and the commercial version will be launched in Q4 2024.

▍ The main views of Galaxy Securities are as follows:

The Galaxy version completely removed the AOSP code snippet, and “Pure Blood” Hongmeng was officially unveiled.

On August 4, 2023, Huawei released the Harmony OS 4, Harmony OS NEXT developer preview, and the newly upgraded HarmonyMeng development kit at the developer conference. Harmony OS NEXT is based on Open Harmony development. This press conference officially opens applications for developers and is named “Galaxy Edition”.

Harmony OS NEXT Galaxy Edition is the first self-developed domestic operating system at the kernel level. It completely abandons the traditional AOSP code, does not support opening APK applications, and only supports Hongmeng kernel and Hongmeng system applications, enabling Hongmeng to make better use of its advantages, provide a more stable, smooth, and efficient user experience, and achieve a leap forward towards a pure Hongmeng operating system, marking that Huawei Hongmeng completely frees from its dependence on Android and gradually builds an independent Hongmeng ecosystem.

Build an independent and native Hongmeng ecosystem, and the trillion blue ocean market space is vast.

According to Huawei's official report, based on full-scenario innovation, the Hongmeng ecosystem has rapidly grown to 800 million. Looking back at the Open Source Industry Ecological Conference in August of last year, Huawei announced that the total number of Hongmeng ecological devices had exceeded 700 million, of which more than 300 million were Huawei-owned devices. Also, according to China's mobile phone market data for Q4 2023, the number of active Huawei phones was 114.657 million, ranking third with a market share of 15.3%.

In five months, Hongmeng Ecological Equipment achieved growth of nearly 100 million dollars. In the future, Hongmeng will continue to empower thousands of industries, achieve the interconnection of everything, and open up a blue ocean of trillion-dollar industries. On the one hand, the Hongmeng system has accumulated a good ecological foundation. Judging from the 2023 Q4 Chinese mobile phone market, the Hongmeng system accounts for at least 15%; on the other hand, a large number of partners have entered the Hongmeng ecosystem. As of December 2023, more than 400 partners have launched the development of Hongmeng's native applications, covering 18 fields such as games, social communication, travel navigation, business office, and travel and lodging.

The Galaxy version helped connect everything, and the year Hongmeng apps made a breakthrough.

Huawei is building a “1+8+N” full-scenario strategy, that is, 1 smartphone; 8 application scenarios; large screen, speaker, glasses, watch, car, headphone, PC, and tablet; N represents other IoT devices.

Among them, “1+8” is led by Huawei, N is joined by partners, and eventually forms a more open form, enabling everything to be connected. Second, the Hongmeng Galaxy Edition will achieve the six ultimate native experiences: native refinement, native ease of use, native fluency, native security, native intelligence, and native connectivity. Huawei says it expects 5,000 apps to complete native Hongmeng development by the end of this year, and the future Sea of Stars will support 500,000 apps.

Next, the Hongmeng ecosystem will enter a new stage of development, which will attract more developers to empower thousands of industries to become Hongmeng. The Hongmeng application will explode in 2024.

Risk warning

Technology research and development progress falls short of expectations risk; supply chain risk; risk of policy advancement falling short of expectations; risk of consumer demand falling short of expectations; risk of industry competition increasing risk.