The Zhitong Finance App learned that Guoxin Securities released a research report saying that technological progress is the core driving force for the growth of the media industry and excess revenue in the secondary market. Looking at the current stage: the fourth productivity revolution represented by AI has arrived and has become the core driving force driving the performance of the media sector; from concept to product, in the context of the gradual maturity and use of underlying technology, commercialization and commercialization from 0 to 1 are at a singular moment, and investment opportunities in the AIGC application-driven sector are worth looking forward to; 2) Focus on domestic and overseas application implementation mapping, focusing on the core goals of commercialization and commercialization in key aspects of commercialization and commercialization implementation.

The main views of Guoxin Securities are as follows:

The underlying big model continues to iterate, and the domestic big model accelerates the maturation of the application

Since the beginning of the year, large models at home and abroad, especially large multi-modal models, have continued to be iterated, and the underlying application support capabilities have been continuously improved. Overseas, after releasing GPT 4.0 Turbo in '23, OpenAI released Wensheng's big video model Sora at the beginning of the year; Google launched Gemini 1.5, and capabilities such as long text and contextual learning were greatly improved; Meta open source Llama 3, and the multi-modal version will be launched later; Suno AI sparked the industry's imagination about the arrival of GPT music.

On the domestic side, the domestic big model represented by Kimi has improved markedly, and domestic manufacturers such as Step Star, Shangtang, and Kunlun World Wide have released multi-modal large models with new capabilities; domestic big model capabilities have rapidly improved. Driven by the catfish effect, a new force represented by Kimi, Step Star, and Secret Tower, the domestic big model is expected to advance beyond expectations in terms of capabilities and application progress.

The C-side scenario continues to generalize

1) The number of Chatgpt users in overseas markets continues to be high. Domestic apps such as Kimi, Doubao, and Tiangong are showing rapid performance, and Chatbots is still the most widely used scenario application. 2) Based on AIGC, AI search engines that use natural language processing, machine learning, deep learning and other techniques to analyze and understand users' search statements have begun to break the circle. From overseas Bing to domestic products such as Secret Tower and Tiangong Search, they may have shown strong vitality from user experience to commercial monetization.

3) In terms of AI social networking applications, overseas apps such as Talkie (MiniMax), Linky (Kunlun World Wide), and domestic market X Eva (Xiaobing) all performed well; 4) Music and video, OpenAI released the MV “Worldweight” produced by Sora, and the music generation capabilities of foreign Suno and domestic SkyMusic have gained a wide audience.

The application implementation advantages of domestic manufacturers are beginning to be demonstrated

In terms of chatbots, the number of ChatGPT users still has an absolute advantage, but the number of domestic Chatbot visits is growing rapidly. Wenxin said that the number of users of products from major manufacturers such as Ali Tongyi Qianwen and Doubao continued to grow at a high level, and the new power Kimi grew rapidly and showed greater vitality; in terms of growth rate, half of the top ten global application growth rates in March were Chinese manufacturers. Among them, Mitta and Kimi, the top two growth rate teams, all were small and medium-sized entrepreneurial teams, confirming the more active domestic application innovation vitality; in terms of product form, the growth rate of domestic apps is showing rapid growth, and domestic application opportunities are more clear under the spread of technology.

Related targets:

a) Big models, IP and data: Kunlun World Wide (300418.SZ), Chinese Online (300364.SZ), Shanghai Film (601595.SH), Zhejiang Digital Culture (600633.SH), Aofei Entertainment (002292.SZ), Optical Media (300251.SZ), Huace Film and Television (300133.SZ), Jiecheng Co., Ltd. (300182.SZ), Visual China (000681.SZ), Changqu Technology (300315.SZ), etc.;

b) Multiple modes continue to advance, with scenarios focusing on AI+ video, marketing, and gaming. It is recommended to focus on Kaiying Network (002517.SZ), 37 Entertainment (002555.SZ), Palm Fun Technology, Huace Film and Television, Shengtian Network (300494.SZ), Zitian Technology (300280.SZ), Aofei Entertainment, Tom Cat (300459.SZ), Giant Network (002558.SZ), Blue Cursor (300058.SZ), Tianshou Entertainment (004.235) SZ), Zhejiangwen Internet (600986. SH) is equivalent.

Risk warning

1. Regulatory policy risks. Changes in regulatory policies will bring great uncertainty to the company's operations.

2. Risk of profits falling short of expectations. There is great uncertainty about film and television box office, game sales, etc., and there is great uncertainty about corresponding revenue and profit.

3. The risk that technological progress falls short of expectations. The implementation of new industries, new models, and new content needs to be driven by the implementation of technology. If software and hardware progress falls short of expectations, it will delay the maturity of content and other ecosystems and affect the growth rate of the industry.

4. The risk of the epidemic and macroeconomic fluctuations being too optimistic. The epidemic has had a significant impact on the offline entertainment industry. Macroeconomic fluctuations have had a big impact on the scale of advertising, which in turn affects revenue growth in platforms, content creation, etc. If the epidemic is repeated or macroeconomic growth falls short of expectations, it will have a big impact on the revenue of related sectors.

5. Risks such as goodwill and asset loss accrual.