Huatai Securities: Actively optimistic about investment opportunities in the AI application sector.

Huatai Securities pointed out that the market was previously suppressed by the narrative of "large-scale model swallowing software", with the AI application sector showing significant valuation discounts compared to computing power/models. We believe that this pricing logic is based on a misunderstanding, as the pricing logic of the AI era revolves around Tokens, forming a three-tier pricing structure of computing power layer, model layer, and application layer. The value of application layer scenario Tokens may not have been fully priced by the market yet. End-enterprise users are not purchasing Tokens but rather business results. The AI application layer, empowered by private data and industry know-how, increases the value of generic model Tokens, allowing for higher Token prices to be charged. In scenarios with clear ROI, AI application vendors are actively exploring new business models such as paying based on Token consumption or payment based on results, shifting revenue sources from procurement budgets to business excess returns. A larger incremental market is opening up, and therefore we are optimistic about investment opportunities in the sector. High growth potential, low valuation, and quality AI application targets that already have revenue based on Token consumption/results payment are expected to attract market attention.