Jingu Financial News | HAITONG SEC released a Research Report stating that SenseTime (00020) announced that it has completed a strategic organizational restructuring. This restructuring is a re-positioning of the company's strategic direction and core areas to better respond to the opportunities and challenges brought by the AI 2.0 era.
The firm believes that the company has already achieved a significant leading advantage in the field of AI large models. On one hand, the company's daily renewal series models perform excellently in evaluations, which corroborates the company's strong technical strength in large models. On the other hand, the company's AI large model solutions rank in the top tier of the industry, indicating that the company not only has excellent models but also possesses the capability to implement these models into practical applications. Additionally, the company ranks among the top three GenAIIaaS service providers, and SenseTime's large deployment can provide comprehensive operational support and ultra-large cluster assurance capabilities for large model business, which has become a solid foundation for supporting the development of the company's AI business. Overall, the company ranks among the leading tier domestically across the entire Industry Chain of large models, AI commercialization, and intelligent computing services, which forms a strong competitive moat for the company in the AI field. With the completion of the organizational strategic restructuring, the company has established a '1+X' framework, enhancing operational efficiency, focusing overall development goals more on generative AI, enabling the company to stand out more in the AI era competition, while also expanding diversified business areas through an ecosystem enterprise matrix, achieving effective synergy with the company and creating greater development space.
The firm determines that the completion of this strategic organizational restructuring will open a new chapter for the company’s development in the AI era. Considering various factors, the firm gives SenseTime Group a 2024 price-to-sales ratio of 16-20 times, corresponding to the company's reasonable value Range of 2.27-2.84 HKD (1 HKD = 0.9327 RMB, with the Exchange Rates benchmark date being December 6, 2024), and assigns an 'outperform the market' rating.
