Doubao, an AI tool launched by ByteDance, offers various functions such as chatbot, writing assistant, and English learning assistant, supporting web, iOS, and Android platforms; this AI tool is developed based on the Lark model and incorporates multiple AI technologies from the Volcano Engine, such as the Doubao large model, Button Professional version, voice recognition, and voice synthesis.

By the end of November, the cumulative user base of the Doubao APP has successfully exceeded 0.16 billion, with an average daily new user download volume steadily maintained at 0.8 million. In November, the daily active users (DAU) of the Doubao APP approached 9 million, while the second place Kimi had only 3 million DAU. "Doubao" has become the second-ranked AI APP globally and the first in China, driving related Consumer stocks to rise.

Doubao concept stocks have collectively surged.

On December 11, Doubao concept stocks collectively surged, with several related Stocks hitting the limit up. Companies like Yakang Co., Ltd. and Haitain Ruisheng realized a 20cm limit up in stock prices. Today (December 12), Douyin's Doubao concept stocks continue to ferment, Guangdong Advertising Group and Inly Media Co., Ltd. achieved two consecutive limit ups, while Tianyu Digital Technology saw five limit ups in six days.

On the news front, Douyin has been continuously promoting platform content governance, especially in the field of micro-short dramas, removing a total of 209 violating micro-short dramas in November, targeting content that promotes unhealthy views on marriage and love, materialism, and vulgar content. Due to Douyin's crackdown on micro-short dramas, related sectors such as content production, review, and platform operation will receive attention.

Guangdong Advertising Group, as a comprehensive Marketing Services provider, has in-depth cooperation with Douyin, providing Advertising Marketing services, among others. The rapid development of "Doubao" and Douyin's crackdown on micro-short dramas may impact its Business. Inly Media Co., Ltd., a data-driven integrated marketing communications company, has business cooperation with platforms like Douyin, providing advertising placement services. Changes in Douyin's content ecosystem and the development of AI applications may also impact its Business.

In the future, with the expansion of the Doubao product matrix and the further exploration of market potential, related Industry Chain companies are expected to continue benefiting.

The Industry Chain benefits significantly.

Computing power infrastructure: Yakang Co. is a third-party service provider in the integrated service field of computing power infrastructure. It has stable cooperation with ByteDance in the fields of hardware devices and Datacenter operation and maintenance services. The running and optimization of Daobao require strong computing power support. Yakang Co., with its professional capabilities and rich experience, provides stable and efficient computing power support and technical operation and maintenance services for Daobao.

Data services: Haitai Ruisheng is a professional data service provider that can offer Daobao various data products or services, such as intelligent voice, computer vision, and natural language. Although Haitai Ruisheng indicated that the specific use of its data for Daobao should be based on information released by ByteDance, the Capital Markets have viewed Haitai Ruisheng as a 'Daobao Concept Stock.'

Application distribution: Tianyu Digital Technology, as the mobile application distribution service provider for Douyin Daobao, provides publishing services for Daobao through its mobile application distribution platform. As of the end of November, the total registered users on Tianyu Digital Technology's platforms have reached 0.324 billion, with platform revenue increasing by 26% year-on-year.

The AI toy sector highlights enormous market potential.

The AI toy sector integrates both Education and companionship attributes, and under the empowerment of AI, the monetization capabilities and boundaries with IP and film and animation are expected to be further unlocked.

According to market research, the global AI toy market was valued at 12.143 billion dollars in 2022, and it is expected to reach 36.377 billion dollars by 2030. This growth is mainly attributed to the continuous advancement of AI technology and the increasing acceptance of smart toys by consumers. AI toys can not only provide educational content, but also meet the emotional needs of children, exhibiting high user stickiness and willingness to pay.

ByteDance’s AI toys like 'Eye-catching Bag' have quickly become popular due to their innovation and the support of AI technology, demonstrating enormous market potential. With the continued advancement and iteration of the Daobao model, ByteDance may form a hardware product matrix centered around Daobao AI, including various products in office, Education, and companionship. This will further enhance the benefit level for related Industry Chain companies.