According to Zhito Finance APP, AVIC Securities released a research report stating that the market's attention to MR headset devices mainly comes from the release of Apple Vision Pro. Due to limitations in hardware, software, ecology, and practicality, the market remains at the stage of thematic speculation. With the iteration of AI and computing power, scale effects driving down hardware costs, continuous improvement of software and content ecology, and enhancement of product cost-effectiveness and portability, the multiplier effect of 'AI×MR× spatial computing' amplifies, activating MR's vast commercial space and is expected to disrupt mobile phones and become the personal super terminal of the new era.

The main points of Futu Securities are as follows:

MR: The next disruptive personal terminal after mobile phones and PCs.

Compared to personal terminals with dual attributes of 'productivity + entertainment,' MR is still defined as an entertainment device: Currently, the benchmark for MR—Apple Vision Pro can basically meet performance and visualization requirements, but its portability is still lacking (weighing between 600g-650g, almost equivalent to wearing iPad Pro on the head), therefore, MR is still defined as an entertainment device rather than a portable communication device or a super personal terminal.

Hardware is the foundation, while software and content are the soul: Chips, sensors, display modules, and optical modules are core components that determine the MR device experience, accounting for 70% of the BOM cost of an MR device. MR devices require a dedicated operating system and application ecology to provide customers with various functions and content.

Multiple departments have introduced policies related to virtual reality, and in the future, local and detailed policies will continue to be implemented: At the end of 2022, the Ministry of Industry and Information Technology and four other departments jointly issued the 'Action Plan for the Integrated Development of Virtual Reality and Industry Applications (2022-2026).'

The four key factors determining user experience: If MR is defined as a personal super terminal similar to a smart phone, its product performance, screen, portability, and price must be guaranteed to reach or even exceed the convenience and functionality of smart phones.

Apple will lead the MR industry, waiting for the upcoming release of high cost-performance products: The Apple Vision Pro hardware adopts the M2+R1 dual processing architecture, with outstanding performance highlights.

With the support of AI technology, the boundaries of MR capabilities are expanding.

Empowered by AI, the practicality and penetration rate of MR in various industries will increase: MR has already permeated the entertainment sector, and the combination of large models and MR is expected to succeed mobile internet.

Transitioning from the real world to the virtual world: The film and television industry is creating an immersive viewing experience; the office sector is dedicated to improving collaboration efficiency and data visualization; the gaming sector will enhance user experience through virtual worlds; a new track: a digital ecosystem represented by virtual humans and digital assets; business models & innovation in commercial models based on interaction and NFTs.

It is recommended to focus on the following investment mainlines:

AI + 3D content production: 3D content is scarce and has a high production threshold, while the development of AI technology has shortened the production cycle of 3D content, which is expected to achieve cost reduction and efficiency enhancement. The increase in content production will facilitate the improvement of the content ecosystem, forming a positive cycle for content production, accelerating the construction of the entire software and content ecosystem for MR. It is recommended to pay attention to 3D content producers silkroad visual technology (300556.SZ) and fantuo digital innovation (301313.SZ).

Application scenarios: MR devices have been widely used in the entertainment sector (games, film and television, etc.) and are expected to penetrate more application scenarios in the future, such as social, medical, office, etc. It is recommended to pay attention to related listed companies laying out XR; Gaming: kingnet network (002517.SZ), wuxi boton technology (300031.SZ), fuchun technology (300299.SZ), hubei century network technology inc. (300494.SZ); Film and TV: shanghai film (601595.SH), zhejiang huace film & tv (300133.SZ); Marketing: bluefocus intelligent communications group (300058.SZ), zhewen interactive group (600986.SH); Cultural tourism: funshine culture group (300860.SZ), shanghai fengyuzhu culture technology (603466.SH), roman group (605289.SH); Sports: lisheng sports(shanghai)co.,ltd (002858.SZ).

Risk factors

Macroeconomic fluctuation risk: Currently, China is still in the economic recovery phase. If there are macroeconomic fluctuations or deviations from economic expectations, the industry will be impacted.

Industry regulatory risk: In response to industry irregularities, regulation may become stricter, and some companies are at risk of being restructured or adjusted.

Technology development falling short of expectations: The development of hardware and software fails to meet user demands, and MR development may encounter difficulties.