Sensetime 0020

[winston]

vested

<Research>CITIC Securities: SENSETIME-W (00020.HK) Notably Adjusts Rev. Structure, Fully Embraces GenAI

2024/04/08

SENSETIME-W (00020.HK) fully shifted from traditional AI to generative AI in 2023, and its revenue structure was adjusted significantly, CITIC Securities released a research report saying.

However, its margin is still under obvious pressure.

The Company is in the first echelon of generative AI technology in China, and plans to release the "SenseNova 5.0" model in April, which is a comprehensive model benchmarking GPT-4 that has already been used in fields such as financial, medical and office.

Focusing on the core generative AI business, the Company is expected to see a new round of development in the future, according to CITIC Securities.

However, taking into account the impact of business transformation on revenue scale, CITIC Securities lowered its 2024/ 2025 revenue forecasts for the Company to RMB4.1 billion/ RMB5.102 billion each, with the latest revenue forecast for 2026 being RMB6.414 billion.

CITIC Securities kept rating at Overweight, with a target price of $1.1.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

vested

SENSETIME-W (00020.HK) Skyrockets ~20% after Releasing 'SenseNova' Foundation Model Ver. 5.0

SENSETIME-W (00020.HK), peaking at $0.74, last printed at $0.73, up 19.67%, on volume of 452 million shares and turnover of $312 million.

SENSETIME-W (00020.HK) announced the launch of the "SenseNova" foundation model version 5.0, which adopts a hybrid expert architecture, based on more than 10TB tokens of training and a massive amount of synthetic data.

The latest version comprehensively benchmarks against GPT-4 Turbo launched by OpenAI in November 2023 in terms of knowledge, reasoning, mathematics and coding.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

not vested

<Research>Haitong Int'l: SENSETIME's 'SenseNova 5.0' Outperforms GPT-4 Turbo under CN Context; Rating Outperform

Haitong International released a report, which said that the 600-billion-parameter foundation model "SenseNova 5.0" recently launched by SENSETIME-W (00020.HK) notably enhanced its knowledge, mathematical, reasoning and coding capabilities, and its comprehensive performance is fully comparable to that of the GPT-4 Turbo.

According to the report, "SenseNova 5.0" not only benchmarks GPT-4 Turbo, but also outperforms the GPT-4 Turbo in the Chinese context.

Since the path to commercialization of GenAI is still murky, the broker believed that the company is considerably undervalued.

Considering the rarity of computing power infrastructure, the company is valued on a net asset value basis, as its AI infrastructure and large language model (LLM) are still far from being profitable.

The broker maintained Outperform on SENSETIME-W with a target price of $1.5, as the company is well-positioned amid the GenAI boom.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

Hong Kong-listed SenseTime says generative AI will help the firm turn a profit in 2 years

The company has set a goal of 100 per cent growth for its generative AI business this year, CEO and co-founder Xu Li told the Post in an interview

SenseTime has explored opportunities outside its traditional AI business, including smart city and smart business solutions

by Kelly Le

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... pe=section

[winston]

not vested

Strategic upgrades to cement leadership in AI technology

Leading AI innovation through SenseNova 5.0 to drive superior performance across a spectrum of innovative solutions

Robust computing infrastructure to accelerate AI adoption

Strategic partnerships with industry leaders to catalyse revenue expansion with expected CAGR of 33% for FY23-25

Maintain BUY with TP unchanged at HKD2.0

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=19841

[winston]

not vested

SenseTime still in the red by 2.4b yuan

by June Chen

SenseTime (0020) saw its losses in the first-half narrow by 21.2 percent to 2.48 billion yuan (HK$2.71 billion) compared to a year earlier, as revenue from generative AI surged.

Revenue rose by 21.4 percent to 1.74 billion yuan, accompanied by the sales from the generative AI and smart auto businesses which both saw an increase in the first six months of this year, rising by 255.7 percent and 100.4 percent year-on-year to 1.05 billion yuan and 168.1 million yuan respectively.

Generative AI accounted for 60.4 percent of the company's revenue - its growth was driven by robust demand for large language models and automatic identification and data capture or AIDC in the Chinese market, the company said.

The returns from the smart auto business rose primarily due to an increase in product mass production and V2X-related services revenue. In the first half, the company delivered 705,000 new vehicles, representing an 80.0 percent year-on-year increase.

It aims to develop a self-controllable, mature and deployable Shanghai autonomous driving large model by 2026, with a mass production scale of tens of thousands of vehicles.

The company didn't declare any interim dividend.

Source: The Standard

https://www.thestandard.com.hk/section- ... -2.4b-yuan

[winston]

not vested

<Research>CICC: SENSETIME-W (00020.HK) Interim Results in Line; Generative AI Drives Rev. Growth

SENSETIME-W's 1H24 total revenue reached RMB1.74 billion, up 21.4% YoY, CICC released a research report saying.

Loss for the period amounted to RMB2.48 billion, with an adjusted net loss of RMB2.33 billion, narrowing by 21.2% and 2.8% each from the same period of 2023.

Related News: SENSETIME-W Interim Loss Narrows to RMB2.457B

The Company's results were in line with CICC's expectations, thanks to the strong growth in its generative AI business.

CICC was optimistic about the improvement in profitability brought about by the AIGC business of SENSETIME-W, and raised its FY2024-FY2025 revenue forecasts by 7.1%/ 12.6% to RMB4.6 billion/ RMB6.08 billion, respectively.

The broker also adjusted its net profit attributed to parent company forecasts for the same period from a loss of RMB3.75 billion/ RMB2.91 billion to a loss of RMB1.95 billion/ RMB980 million, respectively.

CICC was bullish on the Company's industry positioning and product moat in the diversified industrial layout, and kept its target price unchanged at $2, corresponding to the projected PS ratio of 14x/ 10x for 2024/ 2025 each.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

<Research>CLSA Elevates SENSETIME-W (00020.HK) TP to $1.16, Rates Hold

CLSA noted in a research note that SENSETIME-W (00020.HK)'s 1H24 revenue rose 21% YoY, mainly benefiting from the solid growth momentum of its generative artificial intelligence business. Adjusted net loss narrowed 3% YoY, mainly due to a reduction in selling and administrative expenses.

In the longer term, as computing power from external partners continues to grow, SENSETIME management lowered its gross margin target from over 40% to approximately 33-37%, and will continue to maintain its target of achieving break-even on adjusted net profit for FY25 to FY26.

Related News: CMBI Hikes SENSETIME-W (00020.HK) TP to $1.36; Stronger Gen AI Competitive Edges

Taking into account the above factors, CLSA lifted its target price on SENSETIME from $0.75 to $1.16 and maintained its Hold rating.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

SenseTime Group Inc (20 HK)

Key Takeaways From 2024 Asian Gems Conference

SenseTime is a leading AI software company focusing on computer vision technologies, serving a broad range of industries.

It recorded full-year revenue of Rmb3.4b in 2023, making it the largest computer vision software provider in China with an over 20% market share, according to IDC.

The company achieved solid revenue growth of 29% in 1H24, driven by rapid growth in the GenAI business and the smart auto business.

Source: UOBKH

https://39646150.fs1.hubspotusercontent ... 20(20%20HK)%20241021.pdf?utm_medium=email&_hsenc=p2ANqtz-89t-Bc5-_e0E12o72RGcAL4__Sw3qTz-nkpBWCikEnyclMaojduNkJFSUt4Obglo9XMr2PwzZ585JaBkdDZfU4DLg-7A&_hsmi=329993234&utm_content=329993234&utm_source=hs_email

[winston]

not vested

AI helps SenseTime cut loss to 4.3b yuan

SenseTime (0020) trimmed its net loss by 33.6 percent to 4.3 billion yuan (HK$4.6 billion) last year.

Revenue grew by 10.8 percent to 3.8 billion yuan.

Sales from generative AI more than doubled to 2.4 billion yuan, accounting for 63.7 percent of the group's revenue.

Smart auto segment revenue decreased by 33.2 percent to 256.2 million yuan, primarily due to the decrease in revenue from the vehicle-to-everything business.

Revenue from computer vision also slumped by nearly 40 percent to 1.1 billion yuan.

Source: The Standard

https://www.thestandard.com.hk/section- ... -4.3b-yuan