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]

Group 1 - The three major indices opened slightly lower, with the Shanghai Composite Index at 3369.37 points, down 0.23%, the Shenzhen Component Index at 10096.57 points, down 0.25%, and the ChiNext Index at 2038.70 points, down 0.25% [1] - The theme of self-controllable technology is gaining momentum, with the Xinchuang ETF (562570) rising over 1%, and leading stocks such as Jingbeifang, Zhuoyi Information, and others showing significant gains [1] - On June 11, Huoshan Engine launched several models including Doubao Model 1.6, which has superior performance and ranks among the top tier internationally in various authoritative evaluations [1] Group 2 - Ping An Securities believes that the computer industry, as an important part of new productivity, is expected to see a dual increase in performance and valuation due to accelerated demand recovery [2] - The Xinchuang ETF (562570) tracks the CSI Information Technology Application Innovation Industry Index, which focuses on leading companies in self-controllable technology, covering sectors such as artificial intelligence, data computing power, industrial software, and information security [2] - The Xinchuang ETF (562570) is the largest ETF tracking this index, indicating strong interest and potential in the sector [2]

Core Viewpoint - ByteDance's latest Doubao model 1.6 series has redefined the competitive landscape in the AI industry, achieving top-tier performance across various modalities and significantly enhancing its capabilities in reasoning, mathematics, and multimodal understanding [1][12][20]. Group 1: Model Performance and Achievements - Doubao model 1.6 has achieved scores above 700 in both science and liberal arts in the Haidian District's mock exam, with a notable increase of 154 points in science compared to the previous version [2][3]. - The Seedance 1.0 Pro model has topped global rankings in both text-to-video and image-to-video categories, showcasing its superior performance [4][5]. Group 2: Pricing and Cost Structure - The pricing model for Doubao 1.6 has been redefined, offering a unified pricing structure regardless of the task type, with costs based on input length [13][18]. - The cost for generating videos using Seedance 1.0 Pro is significantly low, at 0.015 yuan per thousand tokens, allowing for the generation of 2,700 videos for 10,000 yuan [11][12]. Group 3: Model Features and Capabilities - The Doubao model 1.6 series consists of three models: a comprehensive model, a deep thinking model, and a flash version, each designed for specific tasks and capabilities [23][24]. - The Seedance 1.0 Pro model features seamless multi-camera storytelling, stable motion, and realistic aesthetics, enhancing the video generation experience [38][49]. Group 4: Market Impact and Future Trends - The daily token usage for Doubao models has surged to over 16.4 trillion, marking a 137-fold increase since its launch [73]. - ByteDance's Volcano Engine holds a 46.4% market share in the public cloud model invocation, indicating its strong position in the industry [74]. - The transition from generative AI to agentic AI is highlighted as a key focus for future developments, emphasizing deep thinking, multimodal understanding, and autonomous tool invocation [79][80].