China Securities·2025-05-18 15:25Investment Rating - The report maintains an investment rating of "Outperform the Market" for the computer industry [5]. Core Insights - In Q1 2025, Tencent's capital expenditure reached 27.476 billion yuan, a year-on-year increase of 91.35%, with 23 billion yuan allocated to AI-related business, accounting for over 80% of total capital expenditure. Alibaba's capital expenditure was 24.612 billion yuan, up 120.68% year-on-year, with a signed but unrecognized capital expenditure commitment amounting to 45.321 billion yuan, a 146.68% increase year-on-year. Despite a slowdown in chip procurement due to US-China trade tensions, major companies continue to invest heavily in AI [34][21][18]. - The launch of Huawei's Harmony PC on May 19 marks a significant breakthrough for domestic operating systems, supported by local software vendors, enhancing the Harmony ecosystem and providing localized AI experiences through the assistant "Xiao Yi" [24][29][32]. Summary by Sections Market Review - The computer (Shenwan) index fell by 1.26% this week, underperforming the CSI 300 index by 2.38 percentage points [12]. Investment Portfolio - Current recommendations include Longxin Group, Tax Friend Co., Bosi Software, Compass, Newland, Guoneng Rixin, Top Software, and Daotong Technology. The previous portfolio had a return of -1.01%, outperforming the Shenwan computer index's decline of -1.26% by 0.26% [3][36]. Industry News - Tencent's Q1 2025 report showed a revenue of 180.022 billion yuan, a 12.87% increase year-on-year, with a net profit of 47.821 billion yuan, up 14.16% year-on-year. The financial technology and enterprise services segment generated 54.907 billion yuan, a 5% increase year-on-year [18]. - Alibaba's Q1 2025 report indicated a revenue of 236.454 billion yuan, a 6.57% increase year-on-year, with an adjusted EBITA of 32.616 billion yuan, up 36.07% year-on-year [21]. Investment Recommendations - Continued investment in AI models and technologies is expected, with a focus on ERP and government sectors for initial orders and products. Recommended stocks include Bosi Software, Tax Friend Co., and Kingdee International. The demand for private models is increasing, benefiting integrated machines and B-end service outsourcing companies [35]. - The Harmony PC is anticipated to drive domestic demand, with investment opportunities in the Xinchuang and industrial software sectors. Recommended stocks include Haiguang Information, Dameng Data, and Kingsoft Office [35].