Jin Wu Financial News | Haitong Sec reports that SenseTime (00020) has announced the completion of a strategic organizational restructuring. This restructuring is a repositioning of the company's strategic direction and core areas to better respond to the opportunities and challenges brought about by the AI 2.0 era.
The firm believes that the company currently has a prominent leading advantage in the AI large model field. On the one hand, the company's " Ri Ri Xin" series models have achieved excellent results in evaluations, confirming the powerful technical strength of the company's large models; on the other hand, the company's AI large model solutions also rank among the top tier in the industry, indicating that the company possesses not only excellent models but also the capability to implement these models into practical applications. In addition, the company ranks in the top 3 GenAIIaaS service providers, and SenseTime's large installations can provide comprehensive operational support for large model business and ultra-large cluster assurance capabilities, which has become a solid foundation for supporting the company's AI business development. Overall, the company ranks at the forefront of the industry chain in large models, AI commercialization, and intelligent computing services, which constitutes a strong moat for the company in the AI field. With the completion of the organizational strategic restructuring, the company has established a "1+X" structure, enhancing operational efficiency, making the overall development goals more focused on generative AI, enabling the company to stand out more in the competition of the AI era, and expanding diverse business areas through an ecological enterprise matrix while forming effective synergies with the company, thus expanding 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 16-20 times PS for 2024, corresponding to a reasonable value range for the company of 2.27-2.84 HKD (1 HKD = 0.9327 CNY, with the exchange rates benchmark date on December 6, 2024), and assigns an "outperforming the market" rating.
