Open Source Securities: Domestic AI Chain Performance Exceeds Expectations Across the Board, The overall industry chain vitality is confirmed.

Open Source Securities released a research report stating that Byte's sub-brand Dou Bao has launched three paid value-added services, focusing on complex tasks and productivity scenarios, marking the preliminary commercialization of AI. At the same time, the performance of the domestic AI industry chain exceeded expectations, with profit from computing power leasing companies increasing significantly; AIDC companies showed significant growth in prepayments and net profits. The overall industry chain's prosperity has been confirmed. Open Source Securities' main points are as follows: Bao explores the paid model, and the scarcity of computing power is gradually becoming apparent On May 4th, ByteDance's AI application Dou Bao added a statement on paid version services on the App Store, introducing three tiers of value-added services based on the free version: Standard Edition (monthly subscription 68 yuan/month, annual subscription 688 yuan/year), Enhanced Edition (monthly subscription 200 yuan/month, annual subscription 2048 yuan/year), and Professional Edition (monthly subscription 500 yuan/month, annual subscription 5088 yuan/year). The paid features will mainly focus on complex tasks and productivity scenarios such as PPT generation, data analysis, and video production. The Dou Bao official response stated that it will continue to provide free services while exploring more value-added services to meet different user needs. The details of the relevant plans are still in the testing phase. Since its official release in May 2024, the daily average Token consumption of Dou Bao's large models has increased rapidly by a thousand times to 120 trillion. As one of the leading AI applications in China, the firm believes that Dou Bao's attempt to monetize is a milestone and is expected to become a benchmark in the industry for monetization, validating the scarcity of computing resources while also indicating that AI is entering the initial stage of commercialization. The performance of the domestic AI industry chain exceeds expectations overall, confirming the prosperity of the entire industry chain (1) In terms of chips, Cambricon's profitability continued to rise in the first quarter of 2026, with profit growth far outpacing revenue growth, while contract liabilities surged significantly to ensure future prosperity; Shengke Communication's gross margin has increased for seven consecutive quarters, reaching close to 50% as of the first quarter of 2026. (2) In terms of computing power leasing, in the first quarter of 2026, Sharetronic Data Technology achieved a net profit of 750 million yuan attributable to shareholders, a year-on-year increase of 343%; Jiangsu Lettall Electronic achieved a net profit of 270 million yuan attributable to shareholders, a year-on-year increase of 821%; Glory View Technology achieved a net profit of 260 million yuan attributable to shareholders, a year-on-year increase of 40%. Guangdong Hec Technology Holding announced on May 5th that its holding subsidiary has signed a framework contract for computing power services with a total order amount of 16-19 billion yuan. (3) Regarding AIDC, Beijing Sinnet Technology saw a 291% increase in prepayments in the first quarter of 2026 compared to the end of 2025, mainly driven by customers paying rent in advance; Guangdong Aofei Data Technology achieved a net profit of 93 million yuan attributable to shareholders in the first quarter of 2026, a year-on-year increase of 79%. (4) In terms of switches, Unisplendour Corporation had outstanding performance in the first quarter of 2026, achieving a net profit attributable to shareholders of 788 million yuan, a year-on-year increase of 126%, with its core subsidiary New H3C contributing strong performance in both domestic and foreign markets. Continued optimism for investment opportunities in the entire domestic AI and domestic computing power industry chain (1) Domestic chip & switching network & optical network. Recommended targets: Shengke Communication, Unisplendour Corporation, Hgtech, Zhongji Innolight, Eoptolink Technology Inc., Yuanjie Semiconductor Technology, ZTE Corporation; Benefiting targets: Henan Shijia Photons Technology, Ruijie Networks, Suzhou Everbright Photonics, Jiangsu Etern, Cambricon, Hygon Information Technology, Semiconductor Manufacturing International Corporation, Accelink Technologies, etc. (2) AIDC. Recommended targets: Beijing Sinnet Technology, Guangdong Aofei Data Technology, Dawei Technology (Guangdong) Group, Range Intelligent Computing Technology Group, SUNEVISION, Shanghai Baosight Software; Benefiting targets: Guangdong Hec Technology Holding, Business-intelligence of Oriental Nations Corporation, Shanghai AtHub, Waterview Data, Century Interconnect, Henan Yuneng Holdings, etc. (3) Computing power leasing. Benefiting targets: Sharetronic Data Technology, Glory View Technology, Xingyun Technology, Jiangsu Lettall Electronic, RunJian Co., Ltd., Fengzhushou, Hangjin Technology, China Bester Group Telecom, Infore Environment Technology Group, etc. (4) Optical fiber cables. Recommended targets: Hengtong Optic-Electric, Jiangsu Zhongtian Technology; Benefiting targets: Yangtze Optical Fibre and Cable Joint Stock, YOFC, Hangzhou Cable, Far East Smarter Energy, Jiangsu Etern, Tongding Interconnection Information, etc. (5) Liquid cooling. Recommended targets: Shenzhen Envicool Technology; Benefiting targets: Zhejiang Yinlun Machinery, Guangdong Shenling Environmental Systems, Guangzhou Goaland Energy Conservation Tech, etc. (6) CDN: Wangsu Science & Technology, etc. Risk Warning: Unexpected delays in 5G construction, AI development, China-US trade frictions, etc.