Citi published a Research Report stating that, benefiting from the development boom of DeepSeek and its open-source algorithms, SenseTime (00020.HK) may be re-rated due to the iteration of AI models in its generative AI business. Meanwhile, SenseTime previously announced that enterprise clients and developers can use the DeepSeek-V3 and DeepSeek-R1 models on SenseTime's large device 'Wanshang Platform'. Citi expects that as these models are widely adopted, SenseTime's over 0.054 million GPU reserves will further benefit from the rapid growth in computing power leasing demand. Furthermore, Citi noted that SenseTime announced a business restructuring last year, focusing on core businesses like generative AI and Computer vision, which is expected to reduce operational expenses. Citi has raised SenseTime's revenue forecast for this year and next year by 1% and 3% respectively, while lowering (narrowing) its loss forecast for 2024 to 2026 by 10%, 6%, and 13% respectively, reflecting the reduction in operating expenses post-restructuring; the investment rating was upgraded from 'Hold' to 'Outperform', and the valuation basis was adjusted from an originally predicted P/S of 8 times to 9.5 times, raising the Target Price from HKD 1.77 to HKD 2.14.