Huafu Securities·2025-12-29 09:13Investment Rating - The industry rating is "Outperform the Market" [6][13]. Core Insights - The domestic AI application sector is poised for explosive growth, with major companies actively investing in AI models and talent [2][6]. - Competition in AI model development and application commercialization is intensifying, with significant advancements in both super entry points and vertical functionalities [2][6]. Summary by Sections Industry Dynamics - Tencent has launched the Tencent HY 2.0 language model, significantly improving performance in complex reasoning scenarios, and has released the HY-World 1.5 model for real-time 3D reconstruction [3]. - Alibaba has open-sourced the Qwen-Image-Edit-2511 model, enhancing character consistency and industrial design adaptability, and upgraded the Qwen3-TTS voice model for comprehensive audio understanding [4]. - ByteDance has released the Doubao model 1.8, enhancing autonomous planning and cross-system collaboration, and introduced the Seedance 1.5 Pro model for audio-visual synchronization [4]. - MiniMax has updated its M2 series model, achieving an average score of 88.6 on the VIBE comprehensive ranking, surpassing several international models in multilingual programming capabilities [4]. - Zhipu AI has launched the GLM-4.7 model, focusing on programming, reasoning, and intelligent agents, supporting 128K long texts and multimodal interactions [4]. Application Commercialization - Tencent's Yuanbao APP has added a novel writing feature and integrated with QQ groups for intelligent message summarization [5]. - Alibaba's Qianwen APP surpassed 40 million monthly active users within 30 days of public testing, integrating local life services and launching an AI drama generation feature [5]. - ByteDance's Doubao series models have achieved a daily usage of over 50 trillion tokens, ranking first in China and third globally, with the Doubao APP's daily active users exceeding 100 million [5]. - MiniMax has collaborated with Kuaikan Manhua to launch the first AI interactive comic, enabling animated and voice-enabled characters [5]. - Zhipu AI has fully integrated the GLM-4.7 model capabilities into its applications, enhancing coding abilities and task planning [5]. Investment Recommendations - The report expresses optimism about the explosive growth potential in the domestic AI application sector, recommending attention to Tencent, Alibaba, MiniMax (upcoming IPO), and Zhipu (upcoming IPO) [6].