According to a report by Zhongtong Finance app, GTJA maintains its "shareholding" rating on Tencent (00700), and is bullish on the company's AI capability in enhancing various businesses, as well as the high-quality content ecology to improve the AI experience of Tencent Muanyuanbao ("the app"). The bank believes that the high-quality ecosystem and AI product capabilities of the company will form a mutually reinforcing and positive cycle.

GTJA's main opinions include:

The comprehensive upgrade of the MoE model drives the enhancement of Muanyuanbao's capabilities.

The parameter size of the MoE model reaches trillions, the pre-training corpus reaches 700 trillion tokens, and the model adopts the DIT architecture while the document is photo. The MoE model has a context window of up to 256k characters, making it capable of processing texts exceeding 380,000 characters. Under the enhancement of the MoE model, Tencent Muanyuanbao supports multiple input formats, such as images/files/voices, and can parse up to 10 PDF/word/txt files at a time.

The advantage of the content ecology is significant, and the AI search experience of Muanyuanbao is outstanding.

Tencent Muanyuanbao is connected to WeChat and Sogou search, and is enhanced by AI search to ensure the high timeliness of the content. In addition, Muanyuanbao can also cite and recommend Tencent's ecological content such as WeChat official accounts, which is a data source that many similar products find difficult to obtain. The high-quality content of official accounts can improve the quality of Q&A, while the recommended reading function enables users to quickly trace and extend their reading.

Support for user-defined intelligent entities, actively layout of intelligent entity ecology.

Tencent Muanyuanbao supports user-defined intelligent entities. Users can set roles for intelligent entities or let AI generate relevant information for intelligent entities, and can also replicate users' voices. In addition, Tencent has also laid out a one-stop intelligent entity creation and distribution platform for developers and enterprises - Tencent Yuanqi. This platform provides rich plug-ins and knowledge bases, supports users to customize intelligent entities, and can distribute them to Tencent's ecological channels. However, Muanyuanbao has not yet been fully connected to Tencent Yuanqi, and more interesting functional choices are expected to be provided after the connection.

Risk reminder: consumption recovery is less than expected; regulation is tightening; AI technology and application progress are less than expected; and new game launches are less than expected.