The Zhitong Finance App learned that Guotai Junan released a research report saying that the policy side is steadily advancing generative model reporting, providing basic conditions for continuous iteration and promotion of large domestic models. Since 2024, the domestic big model has continued to improve its capabilities and is close to the level of GPT4, the leading product. Overseas GPT-4O has further improved product cost performance, and large-scale models such as Llama and Gemini have been iterated. This trend of reducing usage costs has also appeared domestically. Companies such as Byte, Baidu, and Tencent have successively lowered API call prices. This trend is expected to help the booming development of domestic AI applications, and may see AI implementation in more scenarios.

The bank maintains confidence in the subsequent development of domestic AI, and the media industry is expected to benefit. In terms of individual stocks, I recommend 1) The education industry is expected to benefit from voice interaction and multi-modal development, benefiting from targets such as Century Tianhong (300654.SZ) and Anhui New Media (601801.SH); 2) The emotional companion circuit also has development opportunities, benefiting from the targets Kunlun Wanwei (300418.SZ) and Shengtian Network (300494.SZ); 3) Focus on multi-modal development to transform film and television production and marketing scenarios, and image corpus requirements. I recommend Shanghai Film (601595.SH), benefiting from the target visual China (0001.68SZ); 4) ) As the content industry with the most complex production process, games also have the greatest potential to benefit from AI development. High-quality game companies have outstanding value, and Kaiying Network (002517.SZ) and Gbit (603444.SH) are recommended.

Guotai Junan's main views are as follows:

Continue to be optimistic about investment opportunities in application scenarios in the trend of large-scale domestic model implementation.

We maintain confidence in the subsequent development of domestic AI, and the media industry is expected to benefit: 1) The education industry is expected to benefit from voice interaction and multi-modal development, benefiting from Century Tianhong, Anhui New Media, Southern Media, and Honghe Technology; 2) The emotional companion circuit also has development opportunities and benefits from Kunlun World Wide and Shengtian Networks; 3) Focus on multi-modal development to transform film and television production and marketing scenarios, and image corpus requirements. We recommend Shanghai movies, which benefit from visual China, worth buying, blue light, and Jeecheng shares; 4) Game production processes are the most complex The content industry benefits from AI It also has the greatest potential for development. High-quality game companies have outstanding value. We recommend Kaiying Network, Gibbitt, 37 Entertainment, Perfect World, and Yao Ji Technology to benefit from Tencent Holdings, NetEase, Giant Network, Shenzhou Taiyue, and Baotong Technology.

The capabilities of large domestic models are close to overseas leaders, and price competition has already begun, and the landing scene is expected to open up further.

The policy side is steadily advancing generative model reporting, providing basic conditions for the continuous iteration and promotion of large domestic models. Since 2024, domestic large models have continued to improve their capabilities and are close to the level of GPT4, the leading product. Overseas GPT-4O has further improved product cost performance, and large-scale models such as Llama and Gemini have been iterated. This trend of reducing usage costs has also appeared domestically. Companies such as Byte, Baidu, and Tencent have successively lowered API call prices. This trend is expected to help the booming development of domestic AI applications, and may see AI implementation in more scenarios.

Search track: Leading overseas products have successfully established a track, and new and old domestic search players have entered the market one after another, and the competition for traffic has already begun.

The pioneer of the search circuit is Perplexity AI, an overseas AI answer engine. The number of users has steadily increased since 2023, and has basically stabilized the daily web page traffic of 3 million people; new and old domestic information search players have actively entered the market, and the popularity of products such as Kimi, Secret Tower, and Tiangong has continued to increase since the beginning of the year. It has formed a certain level of product features and audience groups, and has also begun to explore ways to acquire customers and monetize payments.

Emotional support circuit: user needs are stable, and product monetization is yet to be developed.

The beginning of the emotional companionship circuit can be traced back to 2017. The product mainly meets the emotional needs of users through customized virtual characters. Compared with the efficient interactive AI represented by ChatGPT, emotional companionship AI users are stable in scale and significantly more time, and the potential space is huge. Currently, the user base is relatively young, and product payment solutions are not prominent. How to improve user experience and monetization is an important issue in its long-term development.

Risk warning:

The implementation and promotion results of the big model fell short of expectations, and product competition increased the risk.