Core Insights - The report emphasizes the strong potential of the AI industry and high-growth segments such as gaming, recommending continued investment in these areas [2][13][16]. Group 1: Internet Sector - E-commerce: Alibaba is catalyzing AI-related developments, introducing the "Tongyun Ge" concept, which integrates large models, cloud computing, and chips as a key support for its technology strategy [2][16]. - Social Entertainment Media: Bilibili and Tencent are expected to see strong advertising momentum, with Tencent's gaming fundamentals improving and Bilibili preparing to release new games [2][17]. - Internet Healthcare: JD Health and Alibaba Health are leveraging their platform advantages to deepen collaborations with upstream pharmaceutical manufacturers, leading to sustained revenue and profit growth [2][17]. - Short Video: Kuaishou is maintaining a stable core business, with AI technology enhancing user engagement and commercial conversion [2][18]. - Trendy Toys + IP: Pop Mart announced the establishment of its European headquarters in London, aiming to expand its market presence [2][19]. - Long Video: Multiple platforms are releasing quality series, suggesting investment opportunities in iQIYI and Mango TV [2][20]. - Music Streaming: Tencent Music and NetEase Cloud Music show stable performance, although concerns about competition have led to valuation adjustments [2][20]. Group 2: Media Sector - Gaming: The report maintains a positive outlook on the gaming sector, with expectations of continued industry prosperity into 2026. Key recommendations include Tencent, NetEase, and companies with strong product pipelines like Century Huatong and Giant Network [2][21]. - Advertising: Adjustments in the advertising landscape are not expected to impact the operational trends of Focus Media, with increased investment from internet advertisers anticipated [2][22]. - Publishing: Some publishing companies are facing challenges due to educational reforms, but firms with strong fundamentals and high dividend yields are recommended [2][22]. - Film and Television: Attention is drawn to companies with robust project pipelines, such as Huace Film & TV and Mango TV, as well as cinema chains like Wanda Film and Hengdian Film [2][22]. - IP Derivatives: Companies involved in IP derivatives are highlighted for potential investment, including Huayi Brothers and Shanghai Film Group [2][22]. Group 3: AI Developments - The report notes the rapid advancement of AI applications, particularly with the emergence of Clawdbot, which has gained significant attention in the industry [2][23]. - Recommendations include major cloud players like Google and Amazon, as well as domestic giants like Alibaba and Tencent, focusing on their self-developed models and ecosystems [2][23]. - Specific applications in AI across various sectors are suggested for investment, including AI in gaming, marketing, and healthcare [2][23].

Group 1 - The software sector is experiencing a significant rebound, with the China Software Service Index rising by 0.5%, and notable stocks like Deepin Technology and Dameng Data increasing by over 4% [1] - The Agent industry is on the verge of a breakthrough, transitioning from simple chatbot functionalities to more complex task execution capabilities, marking a shift from "talking" to "doing" [1] - Products like Anthropic's Claude Cowork and domestic offerings such as MiniMax and Jietiao Xingchen are enhancing local PC-based terminal agents, indicating a progression from the initial development phase to a more advanced stage [1] Group 2 - The China Software Service Index comprises 30 stocks involved in software development and services, covering various AI applications across sectors like office, finance, and education [2] - The top ten weighted stocks in the index, including iFlytek and Kingsoft Office, account for over 60% of the index's total weight, providing a concentrated investment opportunity [2] - The E Fund Software ETF (562930) tracks this index, enabling investors to efficiently allocate resources within the AI application sector [2]

Group 1 - The China Securities Software Service Index fell by 1.31% on January 27, 2026, with mixed performance among constituent stocks, led by Hehe Information up 1.07%, and followed by Shenxinfu up 0.86% and Hengsheng Electronics up 0.84%, while Guanghuan Xinwang led the decline [1] - The release of the 2.0 version of the KOUZI tool on January 19 is seen as a significant enhancement in capabilities such as Agent Skills, Agent Plan, and Agent Coding, addressing key pain points of general AI tools being business-ignorant and customized tools being costly and time-consuming, thus facilitating the transition of AI applications in enterprises from pilot projects to large-scale penetration [1] - CITIC Construction Investment Securities noted that the Agent industry is accelerating its evolution from single intelligence to multi-agent systems (MAS), with products like Anthropic CoWork and MiniMax Agent 2.0 deeply integrating local development and office workflows, upgrading AI roles from conversational assistants to digital employees with long-term planning and autonomous execution capabilities [1] Group 2 - As of December 31, 2025, the top ten weighted stocks in the China Securities Software Service Index include iFLYTEK, Kingsoft Office, Tonghuashun, Zhinancun, Hengsheng Electronics, Tuo Wei Information, Runhe Software, 360, Softcom Power, and Shenxinfu, collectively accounting for 60.89% of the index [2] - The Software ETF (159852) tracks the China Securities Software Service Index, serving as a convenient tool for capitalizing on opportunities in the computer software industry [2] - Investors can also access AI software investment opportunities through the Software ETF linked fund (012620) [2]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The report highlights the sustained high demand in the storage sector, with expectations for H200 to be approved for export to China [3] - AI demand continues to validate and enhance computing power requirements, with significant growth in domestic AI chip production [5][8] - The approval of L3 level autonomous driving vehicles marks a critical step towards commercialization in China, with Robotaxi services expected to accelerate [6][30] Summary by Sections Internet - The daily usage of tokens for Doubao has surpassed 50 trillion, indicating deep penetration of large models [17] - The release of the "Internet Platform Pricing Behavior Rules" aims to regulate price competition and protect consumer rights, shifting focus from low prices to ensuring merchant profits and promoting consumption upgrades [20][21] - Recommended stocks include Alibaba-W, Pinduoduo, and Baidu Group-SW, with Tencent Holdings as a beneficiary [58] AI - Google TPU's commercial potential is further confirmed with Anthropic's significant orders, totaling $21 billion, indicating strong demand for AI products [21] - The launch of the Skill paradigm by Anthropic aims to enhance the capabilities of AI agents, facilitating easier development and deployment of complex AI applications [22][26] - The market for Agentic AI is projected to grow significantly, with a potential market size of 1.8 trillion yuan by 2030 [22] Intelligent Driving - The first L3 level autonomous driving models have received approval for trial operation, indicating a shift from testing to commercial application [30] - Robotaxi services are expected to accelerate due to technological advancements, cost reductions, and supportive policies [35] - Key players in the Robotaxi market include Baidu, Xiaopeng Motors, and WeRide, with ongoing trials and commercial operations in various cities [43][44]

Investment Rating - The report maintains an "Increase" rating for the industry, indicating a positive outlook for the sector's performance relative to the benchmark index [5]. Core Insights - The AI ecosystem is undergoing a comprehensive upgrade, with significant advancements in models such as Google's Gemini series and Anthropic's Claude 4, enhancing capabilities in coding, reasoning, and multi-modal applications [3][42]. - The demand for computational power is a critical foundation for the deployment of AI agents, driven by the need for complex task handling, external data integration, and multi-modal processing [3][42]. - The report highlights the importance of hardware and software collaboration in promoting the proliferation of AI agents, with new products like Android XR smart glasses and Google Beam enhancing user interaction [42]. Summary by Sections Google I/O Conference Highlights - Google's I/O conference showcased upgrades to the Gemini series, including the Gemini 2.5 Pro model, which achieved a leading ELO score of 1415 in coding benchmarks [11][12]. - The introduction of multi-modal models like Veo 3 and Imagen 4, along with AI tools for video production, marks a significant step in enhancing AI capabilities [20][21]. - AI features are being integrated into Google Workspace, facilitating improved user experiences across applications like Gmail and Meet [27]. Claude 4 Model Release - Anthropic's Claude 4, featuring Claude Opus 4 and Claude Sonnet 4, sets new standards in coding and reasoning capabilities, with Opus 4 excelling in complex tasks and long-duration operations [31][32]. - The models are designed for integration into various development workflows, supporting major IDEs and enhancing coding efficiency [41]. Agent Industry Development - The report emphasizes the accelerated development of the agent industry, driven by advancements in foundational models and the increasing complexity of tasks that agents can handle [3][42]. - The integration of multi-modal capabilities and the introduction of new hardware solutions are expected to expand the application scenarios for AI agents [42]. Recommended Companies to Watch - Companies in the computational power sector include Cambricon, Alibaba, and Inspur, among others, which are positioned to benefit from the growing demand for AI infrastructure [4][52]. - In the agent space, notable companies include Kingsoft Office, Kingdee International, and Yonyou Network, which are actively developing AI-driven solutions [7][52].