Core Viewpoint - SenseTime's stock surged to a nearly two-year high, reaching 2.7 HKD per share, with a market capitalization of 103.3 billion HKD, marking a return to the billion-dollar valuation [1][3]. Company Performance - SenseTime's stock price has more than doubled from a low of 1.24 HKD per share in April this year, with a peak of 9.7 HKD per share in early 2022 [3][4]. - The company reported a total revenue of 2.4 billion HKD for the first half of 2025, reflecting a year-on-year growth of 36%, while its net loss decreased by 50% [4]. AI Business Growth - SenseTime's generative AI revenue grew by 73% for the third consecutive year, indicating strong performance in this segment [4]. - Goldman Sachs has a positive outlook on SenseTime's generative AI business, projecting that its revenue contribution will increase from 64% in 2024 to 91% by 2030 [4]. Market Context - The Hong Kong government announced the establishment of an AI efficiency enhancement group to promote "AI+" development, which is expected to benefit companies like SenseTime [3][4]. - The recent policy initiatives from the State Council aim to integrate AI into six key sectors by 2027, which is anticipated to boost consumer spending on AI and further support SenseTime's growth [4]. Industry Trends - AI-related stocks, including SenseTime, Baidu, and Kingsoft Cloud, experienced significant gains, with Baidu rising over 15% and Kingsoft Cloud increasing by over 9% [4][6]. - The Ministry of Industry and Information Technology plans to promote high-quality development in the AI industry, indicating a favorable environment for investment in AI-related sectors [6][7].

港股市场AI概念股集体走强，其中，商汤涨超17%，百度涨超16%，金山云涨超9%，阅文集团、中芯 国际、创新奇智、美团、第四范式、阿里巴巴涨超5%。 ...

Group 1 - AI concept stocks in Hong Kong saw significant gains, with Baidu Group-SW rising 17.84% to HKD 133.4, SenseTime-W up 14.47% to HKD 2.61, and Kingsoft Cloud up 8.9% to HKD 8.93 [1] - The Hong Kong Chief Executive, John Lee, emphasized the importance of artificial intelligence in the 2025 Policy Address, focusing on advancing AI research, talent, funding, and application [1] - The Hong Kong government announced a HKD 3 billion "Frontier Technology Research Support Scheme" to attract top international researchers in AI and related fields [1] Group 2 - The Chinese government's "Artificial Intelligence +" action plan released in August provides policy support for the large-scale application and commercialization of AI [2] - Global investment in computing power remains strong, with Oracle's orders exceeding expectations at USD 455 billion, and Alibaba committing to a capital expenditure of HKD 380 billion in AI over the next three years [2] - Analysts from Haitong International and Daiwa have expressed optimism regarding the acceleration of AI applications, noting that leading companies like Tencent, Alibaba, and Kingsoft Cloud are beginning to see results from AI monetization [2]

值得一提的是，今年8月，国务院印发的《关于深入实施"人工智能+"行动的意见》进一步为推动人工智 能规模化应用和商业化落地提供了政策支撑。此外，全球算力投资高景气，甲骨文4550亿美元订单超预 期；阿里重申三年内AI资本开支达3800亿。海通国际表示，看好国产算力浪潮下AI应用落地持续加 速。大和研报则指出，AI变现已开始为腾讯、阿里、金山云等领先企业带来成果。 AI概念股午后涨幅扩大，截至发稿，百度集团-SW(09888)涨17.84%，报133.4港元；商汤-W(00020)涨 14.47%，报2.61港元；金山云(03896)涨8.9%，报8.93港元；万国数据-SW(09698)涨5.1%，报37.1港元； 阿里巴巴-W(09988)涨5.15%，报161.4港元。 消息面上，9月17日，香港特区行政长官李家超在立法会发表2025年《施政报告》。在产业发展和革新 方面，李家超重点提及人工智能（AI），包括推进AI科研和人才优势、强化AI资金优势、强化AI数据 优势、拓展AI应用等。李家超表示，政府早前宣布推出30亿港元的"前沿科技研究支援计划"，将会短期 内接受申请，支持本地资助院校吸引AI等方面的国际 ...

Group 1 - SenseTime-W's stock price increased by 17.98% on September 17, with a total market capitalization of HKD 101.326 billion. The stock has risen 76.5% year-to-date, currently 11.5% above its 52-week high of HKD 2.35 and 162% above its 52-week low of HKD 1 [1] - In the past five trading days, southbound funds have net bought HKD 101 million, and in the last 30 trading days, the cumulative net purchase reached HKD 652 million [1] - The global AI landscape is experiencing a revaluation of internet companies and AI ecosystem enterprises due to the accelerated commercialization of AI amidst a global computing power shortage. The medium to long-term investment opportunities in China's AI sector remain promising [1] Group 2 - Alibaba has launched a new architecture model, Qwen3-Next, which boasts a 10-fold increase in inference speed and a 90% reduction in training costs. Its performance in inference and long-context tasks is comparable to Alibaba's flagship model Qwen3-235B, while its thinking model surpasses Google's latest Gemini-2.5-Flash, making it one of the strongest low-energy open-source models [1] - Meituan has introduced a lifestyle service AI agent product called "Xiao Mei," marking the entry of local life services into conversational interaction. "Xiao Mei" is powered by Meituan's self-developed model LongCat-Flash-Chat, facilitating food delivery orders, restaurant recommendations, and navigation for reservations [1]

Group 1 - The core viewpoint of the news is that the Hong Kong stock market, particularly the technology sector, is experiencing a strong upward trend due to improved liquidity and expectations of interest rate cuts by the Federal Reserve [1] - The CSI Hong Kong Stock Connect Technology Index (931573) has risen by 2.83%, with notable increases in individual stocks such as SenseTime-W (00020) up 15.79% and Kingsoft Cloud (03896) up 11.71% [1] - Southbound capital has significantly increased its investment in Hong Kong stocks, with a net buying amount reaching 1.09 trillion HKD as of September 15, surpassing the total net buying for the entire year of 2024 [1] Group 2 - The CSI Hong Kong Stock Connect Technology Index selects 50 large-cap technology companies with high R&D investment and revenue growth, reflecting the overall performance of technology leaders in the Hong Kong Stock Connect [2] - As of August 29, 2025, the top ten weighted stocks in the index include Tencent Holdings (00700), Alibaba-W (09988), and Xiaomi Group-W (01810), accounting for a total of 64.91% of the index [2]

Core Insights - The emergence of large models, particularly DeepSeek, is driving the commercialization of AI across various industries, enabling companies to deploy AI applications at lower costs [1] - AI-driven companies like Cambrian, Industrial Fulian, SenseTime, CloudWalk, and iFlytek are experiencing significant revenue growth due to the increasing demand for AI capabilities [3][5][6][9] Company Summaries - **Cambrian**: Achieved a substantial turnaround with a revenue increase of 4347% year-on-year in the first half of 2025, reaching 2.881 billion yuan, and net profit of 1.038 billion yuan, compared to a loss of 530 million yuan in the previous year [3][4] - **Industrial Fulian**: Benefited from the AI model's demand for computing power, reporting a revenue of 360.76 billion yuan, a 35.58% increase year-on-year, and a net profit of 12.113 billion yuan, up 38.61% [5] - **SenseTime**: Experienced a revenue growth of 36% year-on-year, totaling 2.358 billion yuan in the first half of 2025, with generative AI revenue growing 73% to 1.815 billion yuan, accounting for 77% of total revenue [6] - **CloudWalk**: Reported a revenue of 169 million yuan, a 40% increase year-on-year, while reducing losses to 230 million yuan, a 35% decrease from the previous year [7][8] - **iFlytek**: Generated 10.9 billion yuan in revenue in the first half of 2025, a 17% increase, with its education segment growing 23.47% to 3.531 billion yuan [9][10] - **Kingdee**: Achieved a revenue of 3.192 billion yuan, an 11.2% increase, with cloud service revenue growing 11.9% to 2.673 billion yuan [11] Industry Trends - The AI sector is entering a new growth cycle driven by generative AI technologies, with global AI spending projected to grow at a compound annual growth rate of 29% from 2024 to 2028, reaching 632 billion dollars by 2028 [12]

Core Insights - SenseTime participated in the 2025 World Intelligent Industry Expo, showcasing its core products including the multi-modal large model, AIOS, and New Member [1] - The partnership between SenseTime and Changan Automobile has been stable since 2022, with nearly 2 million vehicles delivered across 20 models utilizing SenseTime's DMS/OMS products [1] - The multi-modal large model integrates language understanding, full-scene perception, multi-modal fusion, and deep reasoning to enhance user interaction in vehicles [1] Group 1 - SenseTime's multi-modal large model aims to transform vehicle interaction into a more natural and fluid communication experience [1] - The model has been deployed on mainstream vehicle chips, creating a complete gradient from lightweight to flagship products [1] - The New Member feature enables wake-word-free multi-party conversations, allowing it to understand and participate in discussions without interrupting [2] Group 2 - The AI kernel, "Jianji," is designed specifically for vehicle AIOS, integrating various AI capabilities to enhance autonomous perception and decision-making [2] - New Member possesses multi-modal recognition and deep thinking capabilities, transitioning from passive response to proactive service [2]

Core Viewpoint - SenseTime's "SenseNova-V6.5 Pro" has achieved the highest score of 82.2 on the OpenCompass Multi-modal Academic Leaderboard, surpassing top international models like Gemini 2.5 Pro and GPT-5, marking it as one of the strongest multi-modal models globally [1][2][3] Group 1: Model Performance and Technology - "SenseNova-V6.5 Pro" is the latest achievement of SenseTime under its multi-modal general intelligence technology strategy, demonstrating significant advancements in multi-modal information perception and processing, which are essential for achieving AGI [1][3] - The model has successfully integrated "image-text interleaved thinking," allowing it to combine logical and visual thinking, thus enabling graphical representation of certain thought processes [3][4] - The model's reasoning performance has significantly improved through a new paradigm based on reinforcement learning, particularly in areas such as mathematics, coding, GUI operations, and high-level tasks [4] Group 2: Efficiency and Cost-Effectiveness - "SenseNova-V6.5 Pro" features an updated architecture with a lightweight visual encoder and a deepened MLLM backbone, achieving over three times efficiency improvement while maintaining performance, thus optimizing the performance-cost curve [4] - The model's cost-effectiveness is superior to that of international models like Gemini 2.5, indicating a strong competitive edge in the market [4] Group 3: Strategic Vision - SenseTime aims to build a leading general multi-modal model through a comprehensive strategy that integrates infrastructure, models, and applications, focusing on real-world scenarios to enhance end-to-end product technology competitiveness [4] - The company is committed to advancing multi-modal AI from the digital space into the physical world, providing end-to-end value in real scenarios [4] Group 4: Evaluation Framework - The OpenCompass evaluation system, launched by the Shanghai AI Laboratory, provides a comprehensive assessment platform for large models, covering various capabilities and specialized fields, and is regarded as an important reference for evaluating the application value of large models [5]

Summary of SenseTime (0020.HK) Conference Call Company Overview - **Company**: SenseTime (0020.HK) - **Industry**: Artificial Intelligence (AI) Key Points Growth Outlook - Management is optimistic about the growth of the Generative AI business, supported by favorable policies and comprehensive offerings including AI foundation models, industry solutions, and application software [1][5][6] - Generative AI revenues showed strong growth of **73% YoY** in the first half of 2025 [5] One-stop AI Solution - SenseTime's one-stop AI solution includes AI infrastructure (SenseCore), AI foundation model (SenseNova), and various AI applications, which enhances model performance and caters to both business (ToB) and consumer (ToC) clients [5][6] AI Productivity Tools - The company offers AI productivity tools under the Raccoon family, with over **3 million users** by the end of 1H25, leveraging SenseNova V6.5 for data analysis and multi-modal capabilities [5] - Specific versions of tools are provided for enterprise clients in sectors like finance, education, and public services [5] Client Base - SenseTime has established a diverse client base with **660 customers** in the computer vision segment by the end of 1H25, primarily from technology, telecom, automotive, retail, entertainment, and finance sectors [5][6] Financial Projections - Target price set at **HK$2.72**, with a potential upside of **31.2%** from the current price of **HK$2.07** [9] - Revenue projections for 2025 are **RMB 4,874.1 million**, with expected growth of **31% YoY** for 2026-27 [9] Valuation Methodology - Valuation derived from a two-stage DCF model and target EV/Sales multiple of **15.2x**, reflecting the correlation between EV/Sales and revenue growth of peers [7] Risks - Key risks include slower-than-expected ramp-up of generative AI customers, lower customer spending, and increased market competition [8] Conclusion - Overall, management maintains a **Buy** rating, indicating confidence in the company's growth trajectory and market position in the AI sector [1][5]