With the rapid development of information technology, smart cities have become an important trend in global urban development. This report will provide an in-depth investment analysis of the smart city industry from five aspects: industry development status, listed company performance analysis, national policies and development trends, market behavior analysis, and A.Top's industry investment views.
As of November 2024, the smart city industry has shown a vigorous development trend globally. In China, the construction of smart cities has become a national strategy, with the government successively launching and promoting smart city pilot projects, attracting a large amount of social capital investment. According to IDC data, the ICT market investment scale of smart cities in China exceeded 870 billion yuan in 2023, and it is expected to reach 110 billion yuan by 2027. In addition, infrastructure and IoT devices are the largest investment areas in smart city investment, accounting for more than 50%. Listed companies such as Neusoft Group and Taiji Computer have achieved significant performance in the field of smart cities, showing the strong development momentum of the industry.
Through the analysis of the financial reports of related listed companies, we can see some current situations of the smart city industry. For example, Hikvision achieved an operating income of 41.209 billion yuan in the first half of 2024, a year-on-year increase of 9.68%, showing the company's strong competitiveness in the global market. ZTE, facing the challenge of insufficient global economic growth momentum, still maintained a steady performance, with a revenue of 62,487,098 thousand yuan in the first half of the year, a year-on-year increase of 2.94%. These data indicate that despite challenges, the leading enterprises in the smart city industry can still maintain growth, showing an optimistic outlook for the industry.
The Chinese government has attached great importance to the construction of smart cities and has introduced a series of policies to support the development of smart cities. The construction of smart cities can not only improve urban service quality but also promote economic growth and high-quality development. It is expected that the market scale of smart cities in China will exceed 1.3 trillion yuan by 2027. In addition, the construction of smart cities also involves digital economy, government governance, social livelihood, and dual carbon goals, showing the broad development prospects of the industry.
From the perspective of market behavior, the stock performance of leading companies in the smart city industry, such as Hikvision and ZTE, is stable, showing the market's confidence in the smart city industry. At the same time, the investment situation of new projects in the industry also shows the market's activity. In terms of market consumption data, the market supply and demand relationship and price fluctuations of smart city-related products also reflect the healthy development trend of the industry.
Combining the current situation of the smart city industry, the future development forecast is very optimistic. With continuous technological innovation and policy support, the smart city industry will continue to maintain growth momentum. Investors can focus on those leading listed companies with high growth potential in the field of smart cities, such as Hikvision and ZTE, which not only have leading advantages in technology but also show strong competitiveness in market layout.