Investment Rating - The report initiates coverage with a "Buy" rating for SenseTime (00020) [1] Core Insights - SenseTime is positioned as a leader in the AI2.0 era, transitioning from AI1.0 to a generative AI universal platform, with a strategic focus on generative AI and a significant increase in revenue from this segment [6][19][25] - The company has strategically adjusted its business structure, leading to a rapid growth in generative AI revenue, which reached 1.051 billion RMB in H1 2024, a year-on-year increase of 255.70% [8][25] - The report highlights the company's core advantages, including a large-scale AI infrastructure and advanced model capabilities, which create competitive barriers [8][19][45] Financial Data and Profitability Forecast - Revenue projections for 2024-2026 are estimated at 45.6 billion, 61.1 billion, and 81.5 billion RMB, with corresponding growth rates of 33.9%, 34.1%, and 33.4% [9][10] - The net loss is expected to narrow from -42.0 billion RMB in 2024 to -19.9 billion RMB in 2026, indicating improving profitability [9][10] - The gross margin is projected to stabilize around 45.6% for 2025 and 2026, despite a slight decline due to increased operational costs [7][10][35] Business Structure and Strategic Focus - The company has restructured its business into three main segments: generative AI, traditional AI, and smart automotive, with a clear focus on generative AI [25][39] - The traditional AI segment is expected to continue shrinking, while the smart automotive segment is projected to grow significantly, with revenue reaching 1.68 billion RMB in H1 2024, a 100.40% increase year-on-year [8][25][39] Competitive Positioning and Market Trends - SenseTime ranks third in the GenAI IaaS service market, indicating a strong competitive position among peers [20][59] - The report emphasizes the importance of the generative AI market, which is expected to see continued high demand, driving growth for the company's services [8][49] Research and Development - The company maintains a high level of R&D investment, with a focus on developing large models and AI applications, which is crucial for sustaining its competitive edge [8][60] - The rapid iteration of the SenseNova model series demonstrates the company's commitment to advancing its AI capabilities [64][65]
商汤-W（00020）：AI2.0前沿探索者，三位一体布局生成式AI