According to Zhitong Finance APP, HAITONG SEC released a research report stating that Sora Turbo officially launched on December 10, supporting text-to-image, image-to-text, and video generation, with a maximum duration of 20 seconds and a maximum resolution of 1080P. It supports both landscape and portrait modes, offering three video ratios of 16:9, 1:1, and 9:16, with six main functions: Storyboard, Style presets, Re-Cut, Loop, Remix, and Blend. The model exhibits excellent performance in terms of color, style, and consistency.

According to the Quantum Bit public account, by the end of November, Doubao APP's cumulative user base in 2024 has successfully exceeded 0.16 billion, with an average of 0.8 million new users downloading Doubao daily in November. In November, the DAU of Doubao APP approached 9 million, with a growth rate exceeding 15%. HAITONG SEC believes that ByteDance is establishing an AI ecosystem based on Doubao, through applications such as Maoxiang, Xinghui, and Doubao Aixue, and is promoting the upgrade iteration of AI products in the market. Continuous attention to AI application development is advised.

Since November this year, US companies such as Applovin, Shopify, and Palantir in different sectors have benefited from the business explosion brought by AI, with their stock prices continuing to strengthen, directly creating "mapping" investment opportunities for the domestic market. OpenAI, as a leader in the Global large model field, is expected to enhance the focus on AI applications through its continuous technology and product demonstrations. Currently, domestic models such as Kimi and Zhipu are still evolving, with significant progress in AI Agent/text-to-video directions. However, at the application level, it is still in the breakthrough phase from 0 to 1. In the future, continuous realization of user data is expected to lead to explosive growth, with continuous optimism for AI application investment opportunities.

In addition, with the Spring Festival season approaching in 2025, multiple key films are expected to be scheduled continuously. The National Film Administration announced the launch of the "National Film Consumer Consumption Season," which will be held from December 2024 to February 2025, covering important movie schedules such as New Year and Spring Festival, benefiting moviegoers nationwide. Industrial And Commercial Bank Of China, China UnionPay, MAOYAN ENT, and Taopiaopiao, as supporting Institutions, will collectively invest no less than 0.6 billion yuan in movie watching consumption subsidies. HAITONG SEC believes that driven by multiple benefits such as quality film supply and movie ticket subsidies, the overall box office for the Spring Festival in 2025 is expected to continue to reach new highs, and attention is advised for content in film and short dramas.

Recommended areas to pay attention to: 1) Hong Kong stock Internet. 2) Gaming Sector. 3) Marketing. 4) Film and Television. 5) IP Entertainment. 6) AI Applications. 7) Undervalued state-owned enterprises: Broadcasting and Publishing. 8) AI toy directions, etc.

Risk warning: Changes in policy and regulation, increasing industry competition, and delays in the launch of new games.