Daiwa: First positive rating for China's AI industry, top pick Alibaba.

Daiwa released a report, launching coverage of China's AI industry with a positive rating and specifically focusing on foundational models. As model capabilities improve and smart costs decrease, the industry is shifting from competition in model benchmarking to large-scale model consumption, with the pace of commercialization exceeding expectations. The firm estimates that the total potential market size for AI programming in China will reach 264 billion yuan by 2030, with a compound annual growth rate of 266%. The total potential market size for consumer AI is projected to reach 116 billion yuan, with a compound annual growth rate of 154%, while the long-term opportunities in enterprise and multimodal applications are even more substantial. The firm has listed Alibaba as its preferred choice, maintaining a "buy" rating with a target price of HKD 175.