Investment Rating - The report assigns a "Buy" rating for the company, Hai Tian Rui Sheng (688787) [1]. Core Views - Hai Tian Rui Sheng is a leading provider of AI training data solutions in China, focusing on AI datasets and services for AI companies and research institutions. The company is expected to benefit from the growing demand for high-quality datasets driven by the development of large AI models [8][13]. - The data labeling industry is experiencing policy-driven growth, with expectations for a compound annual growth rate (CAGR) exceeding 20% by 2027. The demand for specialized data sets is increasing as AI applications expand [30][32]. - The company has established a global presence, with significant growth in overseas revenue and partnerships with government entities to enhance its data labeling capabilities [47][49]. Summary by Sections Company Overview - Hai Tian Rui Sheng, founded in 2005, is the first company in the AI data industry to be listed on the Sci-Tech Innovation Board. It provides multilingual, cross-domain, and cross-modal AI data services, covering over 200 major languages and dialects [13]. Market Dynamics - The data labeling industry is set to grow significantly, with the Chinese market expected to exceed 10 billion yuan by 2025. The demand for specialized data sets is increasing, particularly in sectors like healthcare and autonomous driving [30][37]. Financial Projections - Revenue projections for Hai Tian Rui Sheng are as follows: 2025 revenue is expected to reach 3.45 billion yuan, with net profit of 0.32 billion yuan. By 2027, revenue is projected to grow to 6.44 billion yuan, with net profit reaching 0.91 billion yuan [1][55]. Competitive Positioning - The company is positioned as a rare player in the A-share market focusing on AI training data solutions, with strong potential to secure orders from internet companies and state-owned enterprises [57]. Growth Strategy - Hai Tian Rui Sheng is expanding its global footprint by establishing a data delivery base in Singapore and forming joint ventures with local governments to enhance its data labeling operations [47][49]. Investment Thesis - The report emphasizes that high-quality datasets are foundational for AI development, and Hai Tian Rui Sheng is well-positioned to benefit from the ongoing evolution and application of AI large models [57].