SenseTime Group (00020) H1 2024 Earnings Call August 27, 2024 04:00 AM ET Speaker0 Hi, everyone. Welcome to Sensetime Group's twenty twenty four Mid Year Results Briefing. Our host is Sheng Shui. Joining us today from management are doctor Xu Li, chairman and CEO of Sun Time, mister Xu Bin, cofounder and executive director, Mr. Wang Ge, Chief Financial Officer. Let me begin by reading the disclaimer. This discussion may contain forward looking statements. Forward looking statements involve inherent risks an ...

[Table_Title] 研究报告 Research Report 商汤科技 SenseTime Group (20 HK) 日日新 5.5 对标 GPT-4o,中美 SOTA 模型发布时间差距缩至 2 个月 SenseNova 5.5 comparable to GPT-4o, difference between China and U.S. SOTA LLM launch shortened to 2 months 姚书桥 Barney Yao 单飞 Monique Shan barney.sq.yao@htisec.com monique.f.shan@htisec.com [Table_yemei1] 热点速评 Flash Analysis [Table_summary] (Please see APPENDIX 1 for English summary) 事件 7 月 4-6 日 2024 WAIC 世界人工智能大会期间,我们参加了商汤科技举办的"大爱无疆·向新力"人工智能论坛。7 月 5 日,商汤在论坛上发布了国内首个流式多模态 AI 交互大模型"日日新 SenseNova 5.5",并推出 ...

[Table_MainInfo] 公司研究/信息服务 证券研究报告 商汤-W(0020.HK)公司报告 2024 年 07 月 14 日 股票数据 0[7Ta月b1le2_日S收to盘ck价(In港fo元] ) 1.38 52 周股价波动(港元) 0.58-1.96 总股本/流通股(百万股) 35142/27622 总市值/流通市值(百万港元) 48496/38119 市场表现 恒生指数对比 1M 2M 3M | --- | --- | --- | --- | |-------------------------|-------|-------|-------| | 绝对涨幅(%) | -8.3 | -9.5 | 95.6 | | 相对涨幅(%) | -4.0 | -2.7 | 91.7 | | 资料来源:海通证券研究所 | | | | 分析师:杨林 Tel:(021)23183969 | --- | |----------------------------| | Email:yl11036@haitong.com | | 证书:S0850517080008 | | 分析师:杨蒙 | | Tel:(021) ...

Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][4]. Core Insights - SenseTime is a leading AI enterprise in China, focusing on generative AI, with a strategic shift in business focus to this area in 2023. The company aims to leverage its capabilities from computational infrastructure to large model deployment, anticipating significant growth driven by AI terminal and multimodal model demand [3][16]. - The generative AI market is expected to grow rapidly, with projections indicating a global market size of $150 billion and a Chinese market size of approximately $13 billion by 2027, reflecting compound annual growth rates of 85.7% and 86.2%, respectively [3][23]. - The company has established a leading AI computational infrastructure, SenseCore, capable of supporting the entire lifecycle of trillion-parameter large models, which positions it well for future growth [3][25]. Summary by Sections 1. Earnings Forecast and Valuation - Revenue projections for SenseTime are estimated at 45.76 billion, 60.05 billion, and 77.06 billion RMB for 2024, 2025, and 2026, respectively. The net profit is expected to be -4.54 billion, -2.93 billion, and -1.44 billion RMB for the same years [10][14]. - The company is valued using a price-to-sales (P/S) ratio, with a target price set at 2.25 HKD based on a comparable company average P/S of 15.16 for 2024 [3][14]. 2. Generative AI Business Growth - The generative AI business has seen explosive growth, with revenue reaching 1.18 billion RMB in 2023, a 200% year-on-year increase, and now accounting for 35% of total revenue [17][21]. - Traditional AI business revenue has declined by 41% to 1.84 billion RMB, reflecting a strategic reduction in reliance on lower-quality cash flow segments like smart city projects [17][18]. 3. Technological Capabilities - SenseTime's SenseCore infrastructure supports large model training and has achieved over 90% acceleration efficiency in its training clusters, with a total operational computing power of 12,000 P and 45,000 GPUs [25][27]. - The company has rapidly iterated its "日日新" large model, achieving performance levels comparable to leading international models like GPT-4 Turbo [28][30]. 4. Market Potential - The generative AI sector is positioned as a key growth driver across various industries, with significant investments and developments occurring in finance, education, healthcare, and more [23][24]. - The report highlights the potential for generative AI to transform productivity and operational efficiency across sectors, indicating a broad market opportunity [21][23].

研[T究ab报le告_ Main] 1 May 2024 商汤集团 (20 HK) 交接覆盖：生成式人工智能推动公司营收增长：SenseNova 5.0 发布，中文场景表现超越 GPT-4 Turbo [投Ta资bl要e_点yemInevie1s] tment Focus [Table_Info] 维持优于大市 SenseNova 5.0的性能和GPT4-Turbo旗鼓相当，且更适用于中文场 景：商汤科技发布了日日新 5.0（SenseNova 5.0），其具有更强大 评级 优于大市 的大语言模型功能，并增加了更多的大模型思维链数据，使该模型 当前价 0.80港元 能够更好地理解中文和中国文化场景中的上下文。SenseNova 5.0 目标价 1.50港元 采用混合专家模型（MoE）法，使大语言模型能够更准确地理解特 定行业中的上下文，并使用超过 10TB 的文本数据单元（token） 海通国际ESG 5.0-5.0-5.0 和高质量合成数据进行训练，旨在使该模型在中文环境中拥有出众 环境-社会-治理：0-5，（ESG点评请参阅附录） 的性能。该模型在推理过程中，上下文窗口可以有效达到 200k， 且能通过解 ...

Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Insights - The company has launched the "SenseNova 5.0" large model system, which matches the performance of GPT-4 Turbo, showcasing its strong technological capabilities and opening new growth opportunities [4][8] - The company has established a comprehensive "cloud, edge, and end" model product matrix, positioning itself as a leader in the industry [5][7] - The financial forecast indicates a significant revenue growth trajectory, with expected revenues increasing from 3,406 million HKD in 2023 to 9,657 million HKD by 2026, reflecting a compound annual growth rate (CAGR) of approximately 45% [6][16] Summary by Sections Investment Information - The stock closed at 1.19 HKD, with a market capitalization of 39.83 billion HKD and a circulating market value of 30.88 billion HKD [1] Market Performance - The company has shown strong absolute and relative performance compared to the Hang Seng Index, with a 70% increase over the past month [2] Financial Information - Revenue is projected to grow from 3,809 million HKD in 2022 to 6,647 million HKD in 2025, with a year-on-year growth rate of 37% in 2024 and 43% in 2025 [6][16] - The gross margin is expected to improve from 44.07% in 2023 to 69.84% by 2026, indicating enhanced profitability [6][16] Product Development - The "SenseNova 5.0" model has significantly improved capabilities in knowledge, mathematics, reasoning, and coding, making it suitable for various applications in education and finance [4][8] - The company has also made advancements in multimodal capabilities, achieving top rankings in authoritative benchmark tests [8][14] Strategic Partnerships - The company has formed strategic partnerships with major players like Kingsoft and Xiaomi to enhance its AI applications across different sectors [7][8] Future Outlook - The report suggests a reasonable valuation range of 2.40 to 3.00 HKD per share, based on a price-to-sales ratio of 16-20 times for 2024 [8]

Financial Performance - Total revenue for 2023 decreased by 10.6% to RMB 3,405.8 million from RMB 3,808.5 million in 2022[9] - Gross profit fell to RMB 1,500.8 million in 2023, down from RMB 2,542.3 million in 2022, resulting in a gross margin of 44.1%[11] - The adjusted EBITDA loss increased to RMB 4,369.0 million in 2023 from RMB 4,213.4 million in 2022[9] - Net loss for the year rose to RMB 6,494.7 million from RMB 6,093.0 million in 2022[9] - Revenue decreased by 10.6% from RMB 3,808.5 million in 2022 to RMB 3,405.8 million in 2023, primarily due to a decline in traditional AI revenue, partially offset by increases in generative AI and smart vehicle revenue[38] - Traditional AI revenue fell by 41.1% from RMB 3,121.1 million in 2022 to RMB 1,838.4 million in 2023, reflecting a significant reduction in reliance on smart city business[39] - Cost of sales rose by 50.5% from RMB 1,266.2 million in 2022 to RMB 1,905.1 million in 2023, mainly due to increased hardware costs and subcontracting service fees[40] - Gross profit decreased by 41.0% from RMB 2,542.3 million in 2022 to RMB 1,500.8 million in 2023, with gross margin dropping from 66.8% to 44.1%[41] - Annual loss increased to RMB 6,494.7 million in 2023 from RMB 6,093.0 million in 2022, as operational cost savings were insufficient to offset the decline in gross profit[52] Revenue Breakdown - Revenue from generative AI services surged by 199.9% to RMB 1,183.7 million, accounting for 34.8% of total revenue[11] - The "Absolute Shadow" smart vehicle business generated RMB 383.7 million in revenue, a 31.1% increase year-over-year[11] - Revenue from traditional AI businesses, including smart cities, declined by 41.1% to RMB 1,838.4 million, representing 53.9% of total revenue[11] - Smart vehicle revenue increased by 31.1% from RMB 292.7 million in 2022 to RMB 383.7 million in 2023, with a notable rise in ADAS-related revenue[39] Operational Efficiency and Cost Management - Total operating expenses for R&D, management, and sales decreased by 10.6% to RMB 5,795.4 million[11] - Capital expenditures, excluding one-time office-related investments, were reduced by 20%[11] - R&D expenses decreased by 13.7% from RMB 4,014.3 million in 2022 to RMB 3,465.8 million in 2023, attributed to reduced employee benefits and lower server operation costs[42] Generative AI Growth - In 2023, SenseTime achieved over RMB 1 billion in revenue from its generative AI business, marking the fastest growth of a new business since its establishment ten years ago[12][14] - Over 70% of customers in the generative AI segment were new clients in the past 12 months, with existing customers seeing an average increase of approximately 50% in their spending[14] - SenseTime's generative AI capabilities have seen a nearly 120-fold increase in usage for consumer-facing applications[18] - The traditional AI business's revenue share decreased from 81.9% in 2022 to 53.9% in 2023, reflecting a strategic shift towards generative AI technologies[25] Infrastructure and Technology Development - The company expanded its operational computing power to 12,000P and deployed 45,000 GPUs across multiple cities, enhancing its infrastructure for large model training services[15] - The cost-effectiveness of inference services improved by three times within a year, providing clients with the most competitive large-scale elastic inference services in the industry[15] - SenseTime's "Riri Xin" model series is undergoing continuous upgrades, with the upcoming version 5.0 expected to match GPT-4-turbo standards and support lossless context of up to one million words[20] - The "日日新" model versions 2.0 and 3.0 were released in July and August 2023, surpassing GPT-3.5-turbo performance, with the 4.0 version achieving capabilities comparable to GPT-4 in various applications[22] Corporate Governance and Compliance - The board is committed to high standards of corporate governance and has adhered to applicable code provisions throughout the reporting period[80] - The company has established a corporate governance committee to ensure operations align with shareholder interests and compliance with listing rules[104] - The audit committee has reviewed the group’s financial reporting procedures and internal control systems, ensuring compliance with applicable accounting standards[100] - The company has mechanisms in place to maintain board independence, including the majority of board committees being composed of independent non-executive directors[84] Shareholder Communication and Relations - The company emphasizes effective communication with shareholders to enhance investor relations and transparency[134] - The company has implemented a shareholder communication policy to ensure timely and equal access to information for shareholders[140] - The company encourages shareholders to provide their email addresses for timely communication[137] - The company’s website serves as a platform for communication with shareholders and investors, regularly updating information[138] Employee and Talent Management - The company emphasizes a culture of accountability, focusing on employee development, workplace safety, and sustainability, which helps attract and retain top talent[82] - The gender ratio among employees is 74.3% male and 25.7% female, with a goal to maintain at least the current level of gender diversity[112] - The company is committed to promoting gender diversity across its workforce, despite challenges in hiring skilled professionals in the AI industry[112] Risk Management - The company has established a comprehensive approach to operational risk management, focusing on identifying, measuring, monitoring, and controlling risks to minimize potential losses[121] - Compliance risk management is a core aspect of the company's risk management activities, ensuring operations comply with applicable laws and regulations[122] - The company has implemented standard protective measures for data security, including confidentiality classification, access control, and data encryption[124] Future Plans and Strategic Direction - The company plans to accelerate the commercialization of generative AI solutions, focusing on providing cost-effective options to users while promoting steady growth in traditional AI businesses[35] - The company aims to leverage the synergy of large devices and large models to enhance its service capabilities and maintain industry-leading model performance through continuous investment in model iteration[35] - The company plans to launch urban NOA functionality in 2024, continuing to lead the domestic market in autonomous driving technology[27]

本报告仅供 Choice 东方财富 使用，请勿传阅。 公司快报 2024 年 04 月 24 日 商 汤-W(00020.HK) 证券研究报告 实现“云端边”全栈 AI 布局，赋能客 应用软件(HS) 投资评级 买入-A 户获广泛认可 维持评级 6个月目标价 1.02港元 事件：4 月 23 日公司召开 2024 年技术交流日，并发布日日新 股价 (2024-04-23) 0.61港元 大模型 5.0 版本。 交易数据 日日新大模型 5.0 能力再升级，完善端侧能力布局。公司此次 总市值(百万元) 20,416.04 技术能力迭代主要体现在：1)推出日日新大模型 5.0 版本，采用 流通市值(百万元) 15,828.77 混合专家架构，推理时上下文窗口达到 200K左右，在数学、推理 总股本(百万股) 33,468.93 及代码能力上全面对标 GPT4-turbo；2)发布面向终端设备的“商 流通股本(百万股) 25,948.81 汤端侧大模型”，以及面向金融、代码、医疗、政务等多个领域的 12个月价格区间 0.58/2.6元 边缘产品“商汤企业级大模型一体机”。至此，公司已经完成了大 模型在“云端边”全栈布 ...

计算机 | 证券研究报告 — 调整盈利预测 2024年4月2日 00020.HK 商汤-W 买入 生成式AI收入高速增长，日日新5.0即将上线 原评级：买入 市场价格:港币0.71 根据公司 2023 年业绩公告，商汤 2023 年营业收入 34.1 亿元，同比-10.57%； GAAP归母净亏损-64.4亿元，同比扩大 6.54%；经调整亏损净额-54.1亿元，同 板 块评级:强于大市 比扩大 14.31%。我们预期公司将继续聚焦生成式 AI 核心业务，保持算力、算 股价表现 法、大模型领域优势，持续推动业务增长，有效管理开支，推动核心业务盈 利。维持买入评级。 25% 支撑评级的要点 5%  生成式 AI收入高速增长，日日新 5.0即将上线。在 2023年的业务重组中， (14%) 商汤业务板块改组为生成式 AI、传统 AI和智能汽车三大板块，后续生成式 (34%) AI 业务将成为公司重点发展方向，该业务主要商业模式有公有云模式、私 (54%) 有化部署模式以及定制化开发模式。2023生成式 AI业务收入 11.8亿元，同 (74%) 比+199.9%。主要来源于市场对生成式 AI 模型在训练、微调以 ...

作为中国最早一批投入人工智能基础设施的公司之一，在成立的第十个年头，商汤迎来了自家生成式AI业务的爆发式增长。 3月26日，商汤在港交所披露其2023年业绩。财报显示，2023年商汤实现总收入34亿元，借助“大装置+大模型”的协同布局，其生成式AI业务在去年创造出11.8亿元的收入，增速近200%，营收贡献率达到35%。 在大模型遍地开花，呈现井喷式发展的契机下，生成式AI业务成为商汤以最快速度从无到有并超过10亿元收入体量的新业务。 “生成式AI对商汤来说已不仅仅是技术领域的变革性创新，更成为公司的核心业务。”商汤科技董事长兼CEO徐立如是说。 01.打铁仍需自身硬，商汤抢占AI 2.0先机 前不久，徐立在2024全球开发者先锋大会（GDC）上曾发表主旨演讲。他表示：“最近，‘新质生产力’成为热议话题，尤其在开发者领域，生成式AI被视为引领生产力突破的技术，也标志着人工智能进入了一个新的发展阶段，我们称之为AI 2.0时代。” 与AI 1.0相比，AI 2.0标志着从基于规则的自动化处理向深度学习和自主学习能力的飞跃。这一跃进不仅提高了AI的理解能力，更赋予了机器创造性思考的可能性，从根本上改变了AI在社会 ...