Huatai point of view: it is optimistic that Lenovo uses cloud, edge, end and other core technologies to hold an industrial meta-universe visit and exchange meeting in Shanghai Lenovo Innovation Science and Technology Park to show the company's layout in various directions such as meta-universe solutions, platforms, equipment and so on. We see that Lenovo has rich technology accumulation in cloud, edge computing, intelligent terminals and other fields, and has rich experience in providing digital services for large enterprise customers. Combined with its own advantages, Lenovo 1) through the large scene space modeling of the physical world, multi-dimensional map registration and fusion, to create a meta-universe full-element map, and combined with an open platform, low-cost construction of meta-universe virtual world; 2) develop intelligent applications of virtual-reality linkage to realize high-value applications such as simulation, robot teleoperation, remote cooperation, detection linkage and so on. We are optimistic about Lenovo's efforts in manufacturing, power, park / city and other industry meta-cosmic scenarios. We maintain our profit forecast and expect FY23/24/25 net profit to be $21.59 billion. Taking into account the PC downside cycle, maintain 10 times FY2023PE (comparable company 22-year average of 18.5 times), maintain the target price of HK $13.89 and "buy" rating.
Equipment: from AIoT and XR glasses to virtual-reality interaction of robots and human-computer cooperation, we can see that the layout of Lenovo equipment includes 1) AIoT camera: with its own computing power, all-weather, long standby, can support industrial scene recognition, flow of people & face monitoring, anomaly warning, real-time detection and other applications. 2) XR glasses: support screen-level holographic display, natural interaction It can be applied to many scenarios such as remote expert cooperation, task list prompt, 3D model reconstruction and so on. 3) Robot / UAV: enabling man-machine cooperation, supporting remote factory patrol, production operation and other applications. Through the rich equipment layout, Lenovo can realize data reading, analysis and real-time operation, so that the industry meta-universe can be upgraded from "visualization" to virtual-real interaction intelligence, and enhance business revenue.
Platform: the construction of platform tools supports four types of basic services
The company plans to provide basic services in four major scenarios: 3D asset creation, virtual-reality fusion and simulation, planned deployment and control of tasks, and real-time cloud rendering and interaction of large-scale 3D scenes. The corresponding platforms include 1) tools: content creation, deployment, editing, cloud rendering, interactive display and asset management; 2) algorithms, including spatial computing (3D reconstruction, positioning, tracking), object understanding (detection, recognition, measurement); 3) human-computer interaction (gestures, behaviors, expressions); and 4) model processing (rendering, transformation, streaming).
Applications: from XR applications, general applications, to industry metasmos that the company believes that applications will be advanced from XR applications (virtual data are integrated into real environments, such as remote collaboration, XR training), general applications (real environment data analysis and integration into virtual data, such as smart eyes, intelligent inspection), to industry meta-cosmos (comprehensive, dynamic mirroring, building industrial mechanism models, such as manufacturing metaspheres, power metaspheres). The corresponding technology is also continuously enriched and upgraded from XR+ cloud computing to robot + artificial intelligence + edge computing to digital twin + simulation + cloud rendering.
Risk hint: macroeconomic downside risks, technological innovation is not as expected.