Investment Rating - The report maintains an investment rating of "Outperform the Market" for the computer industry, indicating an expected return that exceeds the CSI 300 Index by 10% or more over the next six months [8]. Core Insights - The launch of the first commercial world model product, Marble, by World Labs, allows users to create editable and downloadable 3D virtual scenes from various inputs, significantly reducing scene distortion and inconsistency [1][12]. - The concept of a "world model" is introduced as a new AI system that enables machines to understand spatial relationships and interactions, moving beyond mere language descriptions [2][13]. - Major breakthroughs in world model technology have been achieved by global tech giants, including Tencent's mixed 3D world model and Google DeepMind's Genie 3, which enhances the generation of interactive virtual environments [3][14]. - Spatial intelligence is expected to empower creative tools in the short term and serve as a foundational capability for machines to understand and interact with the three-dimensional world in the medium term [4][15]. Summary by Sections Investment Recommendations - The domestic world model and physical AI industry chain is forming, with significant advancements such as the ReKep system developed by Li Feifei's team, which utilizes RGB-D cameras for 3D visual data support [5][16]. - Recommended stocks include: - Oboe Technology (leader in 3D visual perception) - Zhiwei Intelligent (robotic brain controller) - Suochen Technology (physical AI product developer) - Alter (investing in the robotics sector) [5][16]. Market Performance Review - The computer sector underperformed relative to the CSI 300 Index, with a decline of 3.72% this week, while the overall market indices showed mixed results [17][18]. - The computer industry index ranked 28th among 30 industry indices, indicating weaker performance compared to other sectors [20]. Industry News - The report highlights significant developments in quantum applications in Anhui province, aiming for 1,000 application scenarios by 2027, and the departure of Meta's chief AI scientist, who plans to establish a world model company [24][25].

Investment Rating - The report rates the electronic industry as "Outperform" compared to the market [1]. Core Insights - The WAIC 2025 showcased advancements in AI models, computing chips, and server technologies, indicating a robust growth trajectory for the domestic AI industry [2][5]. - Domestic AI models and intelligent agents are rapidly evolving, with significant improvements in performance and cost efficiency [10][19]. - The report emphasizes the importance of long-term investment opportunities in the domestic AI supply chain, despite external challenges [2][8]. Summary by Sections WAIC 2025 Highlights - WAIC 2025 focused on AI models, computing chips, and servers, featuring top tech companies and innovations [5][6]. - Key products included the Step-3 model by Jieyue Star, SenseNova V6.5 by SenseTime, and Tencent's Hunyuan 3D World Model, showcasing advancements in multi-modal capabilities [10][19][25]. Domestic AI Model Developments - Jieyue Star's Step-3 model achieved state-of-the-art results in various benchmarks, with a total parameter count of 321 billion and activation parameters of 38 billion [11][12]. - SenseTime's SenseNova V6.5 model demonstrated a threefold improvement in cost-performance ratio compared to its predecessor [21][23]. - Tencent's Hunyuan 3D World Model 1.0 gained over 2.3 million downloads, highlighting its popularity and effectiveness in generating editable virtual worlds [25][28]. GPU Innovations - Muxi's flagship GPU, Xiyun C600, represents a significant breakthrough in domestic high-performance GPUs, featuring a complete supply chain and advanced capabilities [7][42]. - Huawei's Cloud Matrix 384, equipped with Ascend 910C chips, offers 300 PFLOPs of computing power, suitable for large model inference and training [46][50]. Investment Opportunities - The report suggests that the domestic AI industry is progressing in multiple areas, including model capabilities and hardware specifications, making it a worthwhile investment focus [2][8].

Investment Rating - The report indicates a strong upward trend in the automotive and robotics sectors, particularly highlighting the potential of intelligent driving and humanoid robots as key investment opportunities [3][4]. Core Insights - Intelligent Driving: The sector shows robust growth with increasing penetration rates for smart driving technologies and accelerated commercialization of Robotaxi services. WeRide has obtained the first autonomous driving license in Saudi Arabia, making it the only company with licenses in six countries [1][7]. - Robotics: The industry is experiencing steady growth, with new product launches from leading overseas companies expected to drive acceleration in the sector. The introduction of the "Lingqu OS" by Zhiyuan Robotics aims to create an open-source framework for embodied intelligence [2][14]. Summary by Sections Intelligent Driving - WeRide announced its Q2 financial results and received the first autonomous driving license for its Robotaxi in Saudi Arabia, marking a significant milestone in its global expansion [1][7]. - The establishment of the Changan Group as the third national automotive central enterprise in China, with a registered capital of 20 billion yuan, indicates a strengthening of the automotive industry [1][10]. - The launch of the Li Auto i8, the first mass-produced VLA electric SUV, signifies advancements in electric vehicle technology and market competition [1][8]. - NIO's L90 SUV saw a surge in orders on its first day of launch, reflecting strong market demand for new electric models [1][9]. Robotics - The humanoid robot R1 was launched by Yushun Technology at a starting price of 39,900 yuan, showcasing advancements in consumer-grade robotics [2][25]. - Zhiyuan Robotics introduced the "Lingqu OS," an open-source operating system aimed at enhancing the integration of robotic systems and driving breakthroughs in embodied intelligence technologies [2][28]. - The robotics sector is witnessing increased collaboration among companies, with strategic partnerships being formed to enhance product offerings and market reach [2][20]. Investment Recommendations - The report emphasizes that ROBO+ represents the strongest industrial trend in the automotive sector, with intelligent driving and humanoid robots being pivotal areas for growth. The penetration rate for advanced intelligent driving is expected to see explosive growth by 2025 [3][4]. - Key supply chain components such as chips, LiDAR, and optical devices are anticipated to experience significant growth, with recommendations to focus on leading companies in these fields [3][4]. - The second half of 2025 will be crucial for monitoring technological advancements and market dynamics in the robotics sector, particularly regarding new technologies and component pricing [3][4].

Investment Rating - The industry investment rating is "Outperform the Market" [1][33] Core Viewpoints - The competitiveness of domestic large models continues to improve, and there is a strong outlook for the development of China's AI industry [1][6] - The continuous iteration and upgrade of domestic large models, along with the popularization of large model applications, will drive sustained strong demand for AI computing power in both training and inference, leading to a continuously high prosperity in China's AI computing power market [6][31] Summary by Sections Algorithm Sector - Recent advancements in domestic large models have accelerated, with notable releases such as Kimi K2, Qwen3-Coder, and GLM-4.5, which achieved state-of-the-art (SOTA) performance in various benchmarks [6][11][9] - GLM-4.5, launched on July 28, has a total parameter count of 355 billion and is designed for intelligent agent applications, ranking first among domestic models and third globally in comprehensive capability across 12 evaluation benchmarks [11][15] Application Sector - As of June 2025, six out of the top ten AI applications globally by monthly active users (MAU) are domestic applications, including Quark (156 million), Baidu Cloud (155 million), and Doubao (126 million) [17][19] - The overseas version of Douyin, Cici, achieved a monthly active user count of 24.01 million, marking a 17.56% quarter-over-quarter increase, the highest among million-level active AI applications [19][20] Computing Power Sector - China's AI computing power market is expected to maintain high prosperity, with significant advancements in domestic AI computing chips from companies like Haiguang, Huawei, and Cambrian [21][22] - The market for AI computing power is projected to grow rapidly, with estimates indicating that by 2026, the scale of intelligent computing power will reach 1460.3 EFLOPS, with a market size of 33.7 billion USD [26][29] Investment Recommendations - The report strongly recommends stocks in AI algorithms and applications, including companies like Hengsheng Electronics, Zhongke Chuangda, and Shengshi Technology, while also suggesting attention to companies in AI computing power such as Haiguang Information and Longxin Zhongke [31][7]

Investment Rating - The industry investment rating is "Outperform the Market," indicating that the industry is expected to perform better than the market benchmark over the next 12 months [56]. Core Insights - The WAIC conference highlighted key trends in technology innovation, emphasizing the acceleration of intelligent agent applications by companies like Tencent and JD.com, the rapid development of open-source ecosystems supporting AI, and the focus on world models and embodied intelligence [5][4]. - The report recommends companies with strong technological capabilities and broad application scenarios, including Alibaba, Tencent, Kuaishou, Baidu, Horizon Robotics, Li Auto, and Xpeng, as they are expected to benefit from the increasing demand for large model applications [5][4]. Summary by Sections AI Development and Applications - Tencent has launched over 10 intelligent agents across various verticals, while JD.com has open-sourced its JoyAgent intelligent agent [5][4]. - Alibaba's Tongyi Qianwen has surpassed 400 million downloads, with over 140,000 derivative models created [5][4]. - The report notes that Tencent's mixed 3D world model 1.0 significantly simplifies the 3D scene construction process, enhancing efficiency in game development and digital content creation [9][4]. Autonomous Driving - The report identifies a dual inflection point in the autonomous driving sector, with improved regulatory environments and the introduction of Tesla's advanced Full Self-Driving (FSD) technology in China expected to boost competition [4][5]. - The penetration rate of L2+ autonomous driving vehicles in China is estimated to be around 30-35%, with projections indicating it could exceed 50% by 2026 [4][5]. Company Recommendations - The report recommends investing in companies with robust technological foundations and diverse application scenarios, specifically highlighting Alibaba, Tencent, Kuaishou, Baidu, Horizon Robotics, Li Auto, and Xpeng [5][4]. - The anticipated growth in cloud business driven by the increasing demand for large model applications is expected to support the stock performance of these companies [5][4].

Market Overview - The Hong Kong stock market experienced a decline, with the Hang Seng Index closing at 23,831 points, down 145 points or 0.61% [1] - The weekly performance showed the Hang Seng Index, the Hang Seng China Enterprises Index, and the Hang Seng Technology Index increased by 2.27%, 1.83%, and 2.51% respectively [1] - The semiconductor sector showed resilience, with notable gains from companies like Hua Hong Semiconductor (up 9.09%) and SMIC (up 4.98%) [1][5] US Market Performance - The US stock market saw gains, with the S&P 500 closing at a record high of 6,388 points, up 0.4% [2] - Notable movements included Intel's significant loss of $2.9 billion and a 22% workforce reduction plan, leading to an 8.5% drop in its stock price [2] - Tesla rebounded by 3.5% after a previous drop, while Nvidia and Meta saw slight declines [2] Investment Opportunities - The report emphasizes the continued attractiveness of Hong Kong stocks due to lower valuations and increasing trading activity driven by a "profit-making effect" [3] - Suggested sectors for investment include technology (AI, robotics, semiconductors), innovative pharmaceuticals, and consumer sectors with low valuations [3] - The report highlights a record net inflow of 32.4 billion HKD into Hong Kong stocks, indicating strong investor confidence [3] Key Company Insights - ZTE Corporation is noted for its comprehensive communication product line, with a projected revenue of 121.3 billion RMB for 2024, despite a slight decline [10] - The company maintains a high gross margin of 37.91% and is expected to see significant growth in its enterprise and consumer business segments [10] - The introduction of advanced computing solutions positions ZTE favorably in the competitive landscape [10] Market Sentiment - The report indicates a strong sentiment towards Chinese assets, with foreign capital showing a preference for Chinese stocks, as evidenced by a net increase of $10.1 billion in foreign holdings [9] - The performance of A-shares has also been robust, contributing to a positive outlook for Hong Kong equities [9]