Event: according to the news report of “heartfelt community” of Huawei’s internal forum, following the establishment of the first five legions in 2021, Huawei held the establishment meeting of the second batch of ten legions at Huawei Bantian base in Shenzhen on March 30, 2022. The second batch of ten legions include power digitization legion, government all-in-one Netcom legion, airport and track legion, interactive media legion, sports health legion, display new nuclear legion, park legion, wide area network legion, data center base Legion and digital site Legion.
Large platform + elite team, active attack under international sanctions: Huawei is the world’s leading provider of ICT infrastructure and intelligent terminals. In 2021, under the continuous sanctions and pressure of the United States, according to the company’s annual report, Huawei achieved a revenue of 636807 billion yuan, a year-on-year decrease of 28.6%; Among them, the revenue of consumer business was 243432 billion yuan, a year-on-year decrease of 49.6%. The decline in revenue was mainly due to the rapid contraction of Huawei’s mobile phone and other consumer electronics businesses under multiple rounds of sanctions in the United States. With regard to the current changes in the international situation and the rise of global uncertainty, adopting the flexible strategy and tactics of “large platform + elite team” will help the company fight more food and activate the organization. It is the initiative of the company to seek new development in multiple industries and industries under international sanctions.
Meet the tide of digital economy and create a new engine for performance growth: up to now, Huawei has 15 legions, mainly focusing on enterprise business and consumer business. We believe that among Huawei’s first and second legions, the digital site Legion will focus on the new infrastructure sector, the park and wide area network Legion will focus on the digital economy sector, the interactive media, sports health and display new nuclear Legion will focus on the C-end personal digital economy application sector, the data center base Legion will focus on the eastern digital and Western computing sector, the data center base, power digitization, airports and tracks, coal mines, smart roads The customs and port Corps will focus on the industrial Internet sector, and the intelligent photovoltaic and data center energy Corps will focus on the relevant sectors of the combination of communication and new energy. More than half of them are related to digitization and intelligence. On the one hand, they respond to the “14th five year plan” digital economy plan, and on the other hand, they echo the development trend of digitization, intelligence and low-carbon proposed by the company in the 2021 annual report press conference. As the world’s leading communication equipment supplier, the company chose digitization as the breakthrough main line in the face of multiple challenges, which shows that the company is fully optimistic about the growth of relevant sectors.
Shorten the resource integration chain and open up the value transmission channel: Huawei’s legionnaization reform aims to cooperate with various organizations of the company to directly face customers, industries and industries through legions (product portfolio legion, industry Legion and industry Legion). By breaking the existing organizational boundaries, shortening the management chain, quickly assembling resources, improving the response speed of customer needs, connecting product development and maintenance, and reducing material consumption and loss, the top ten legions can open up a fast, simple and efficient value transmission channel, so as to build the competitiveness of the company’s solutions, open up growth space, create value for customers, and help the digital, intelligent and high-quality development of the industry.
Investment suggestions: it is suggested to pay attention to the relevant sectors of new infrastructure, digital economy, C-end personal digital economy application, East West computing, industrial Internet, and the combination of communication and new energy.
Risk tips: the risk of changes in the international situation, the risk of policy changes, the development of digital economy is less than expected, and the construction of computing infrastructure is less than expected
