Huatai Securities: how does metaverse become the next generation productivity tool?

How metaverse can become the next generation productivity tool: from digital twinning to virtual and real symbiosis, we believe that metaverse, as the next station of the Internet, will change the business form of many enterprises such as office, city and industry, drive the improvement of social productivity, the transformation of production form, and then change the industrial chain and value distribution mode. We believe that the industry changes brought by metaverse will focus on three dimensions: 1) productivity improvement: the improvement of office efficiency, communication efficiency, government management efficiency and industrial R & D efficiency is expected to benefit from the development of metaverse; 2) Change of production form: enterprise organization form, urban form and industrial production form are expected to change; 3) Reshape relevant industrial chains and value distribution. It is suggested to pay attention to the investment opportunities in companies (Yilian network), smart city industrial chain (Hikvision, Dahua Co., Ltd.), industrial modeling and simulation (Zhongwang software, central control technology, UFIDA network, Guanglianda, Baoxin software, Baichu electronics, Shanghai Steel Union) and other fields accumulated in the field of digital office.

Office: metaverse improves the efficiency of office production, communication and cooperation, drives the transformation of software and hardware in the industrial chain, the digital era, and the continuous evolution of productivity / communication / cooperation tools in the office industry, continuously driving the improvement of industry efficiency. We believe that metaverse will further empower the office industry and promote the reform of software and hardware in the industrial chain:

1) Immersive experience and the use of body language make communication close to the “face-to-face” communication effect in reality to the greatest extent, so as to improve work efficiency and creativity; 2) Metaverse’s characteristic of working anytime and anywhere promotes the globalization of labor supply and changes the organizational form and management mode of enterprises; 3) The industrial chain is expected to change from top to bottom, the intellectualization of existing devices such as PC is deepened, emerging devices such as VR / Ar / brain computer interface are applied, and office software is evolving to the metaverse community focused on by science and technology giants such as Microsoft and meta.

City: metaverse will bring innovation to urban management and urban services. As the carrier of people’s life and work, the city has evolved from digitization to intelligence in the past 20 years. The radius of urban management has become larger and more content has become, resulting in more new infrastructure and more multidimensional perception technology. As the next direction of urban development, metaverse will continue to bring new changes in urban management and services: 1) privacy computing technology will improve the management efficiency of multi-dimensional cities; 2) AR / VR will improve the interaction quality between people and cities, and urban emergency management in virtual space is expected to improve urban decision-making ability; 3) In the past, the all-in-one card broke the isolated island of government data. In the metaverse era, the application of digital people will improve the service level of the city. Security, communications and government level application software companies are expected to benefit.

Industry: the transformation of industrial process by digital twins is the main investment line of “metaverse + computer”. From information, digitization to metaverse era, industrial software has always evolved together with industrial process. In the digital age, the main significance of industrial software is to precipitate industrial experience with digital model. In the metaverse era, industrial digital twin technology has brought changes to all links of industry: in the R & D and design link, metaverse improves efficiency by integrating a large amount of computing power; Production control link, virtual simulation brings changes to production control link; In operation management, the arrival of metaverse makes in-depth management possible; Collaborative integration links and office collaboration help break through the limitations of physical space. We believe that taking the application mode of digital twins as the clue is helpful to find the core beneficiary of “metaverse + computer”.