Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [2] Core Insights - The release of Doubao 1.6 series models has significantly enhanced the reasoning capabilities and multi-modal understanding in the global AI landscape, with specialized versions catering to various task complexities [5][6] - Doubao-Seed-1.6 achieved a score of 144 in the national math assessment and 81.5 in the GPQA Diamond evaluation, ranking among the top globally, showcasing superior reasoning abilities compared to competitors [6] - The Doubao video generation model Seedance 1.0 pro ranked first in both text-to-video and image-to-video tasks, surpassing other multi-modal models [6] - The Doubao Seed1.6 model is the first in China to support 256K context, allowing it to handle over 300,000 words, providing an advantage in processing lengthy documents and complex tasks [6] - The innovation in the Doubao 1.6 series is expected to drive the intelligent transformation in sectors such as education, e-commerce, office, and smart hardware [6] Summary by Sections Industry Overview - The closing index is at 706.9, with a 52-week high of 752.49 and a low of 456.84 [2] Performance Analysis - The relative performance of the media industry shows fluctuations, with a notable increase of 9% from June 2024 to June 2025 [4] Investment Highlights - Value-added services are becoming critical in the competition among large model vendors, with companies leveraging their existing business strengths to enhance product competitiveness [7] - For instance, ByteDance attracts users to its models through value-added services like advertising on Douyin, while Tencent and Alibaba utilize their data advantages in social and e-commerce sectors respectively [7]

Investment Rating - The report maintains a "Recommended" rating for the industry, indicating a positive outlook for the sector's fundamentals [2]. Core Insights - The launch of Doubao Model 1.6 significantly enhances performance while reducing costs to one-third of the previous model, making it a key focus for the AI Agent industry [1][9]. - The Hong Kong Stablecoin Regulation will take effect on August 1, 2025, which is expected to catalyze the development of the stablecoin ecosystem [22]. - The GENIUS Act is anticipated to pass in the Senate this month, potentially expanding the stablecoin market significantly [23][24]. Summary by Sections 1. Volcano Engine Force Conference Review - The conference held on June 11-12, 2025, introduced Doubao Model 1.6 and other models, showcasing a 137-fold increase in daily token usage since its previous release [9][20]. - Doubao Model 1.6 features a unified pricing model and superior capabilities, achieving top-tier scores in various assessments [10][14]. 2. Focus on Stablecoin Catalysts - The implementation of the Stablecoin Regulation in Hong Kong is a milestone for the sustainable development of the digital asset ecosystem [22]. - Ant Group plans to apply for stablecoin licenses in Hong Kong and Singapore, aiming to enhance its global financial management capabilities [22]. - The stablecoin market is projected to grow from $247 billion to $2 trillion by 2028 if the GENIUS Act is approved [23][24]. 3. Market Performance Review - The computer sector experienced a decline of 2.52% in the second week of June 2025, with notable stock performances from various companies [26][27].