Tianfeng: From the internet to the cloud and now to AI, three major investment opportunities under AI Agent.

Tianfeng released a research report stating that looking ahead to 2025, the exponential growth of AI agents and reasoning demands is expected to lead the year of scaled AI application, continuously driving the expansion of software product capabilities, empowering enterprises to achieve more efficient operations and cost optimization. Combined with the future technological advancements of large models and AI agents, intelligent application scenarios are accelerating expansion, assisting enterprise markets in achieving cost reduction and efficiency improvement. From the perspective of ten years, the computer sector is more susceptible to macroeconomic and risk preference influences due to its high elasticity; in the short term (1-2 months), if the environment continues to improve, the computer index may lead; in the medium to long term (1 year), the overall performance of the sector may be better than the index, but it is still necessary to pay attention to the fundamental aspects of enterprises and valuation matches, as well as tracking policy and technological evolution. Tianfeng's main points are as follows: Review: In 2024, the industry was influenced by macroeconomic fundamentals and risk preferences, resulting in market trends that were volatile and differentiated. The market experienced 11 months of one-way decline, but starting in October, the market showed a "unique offensive and defensive balance", with the index rebounding and funds gradually returning to the core track. Possible trends for 2025: Scenario one: Weak volatility - Prosperity Line The innovation and creation industry is accelerating, with policy drivers and demand release driving the increase in prosperity. Innovation has moved from 1.0 to 2.0 stage, covering from government to the entire industry. It is expected that from 2023 to 2027, the coverage/user base of innovation PCs is expected to exceed 60 million units, which is 10 times that of the 1.0 stage. Local intelligent computing centers are accelerating construction, technical performance continues to improve, driving the release of demand and high-quality development of the entire innovation chain. Scenario two: Continued strength - Theme Line Computing power and AI applications are important drivers for future industrial growth. The construction of local intelligent computing centers is accelerating, with computing power expected to grow by over 300% in 2025, becoming a key driving force. At the same time, the investment of enterprises in large models and AI applications continues to increase, with core benefiting companies including Cambricon, Hygon Information Technology, and Hand Enterprise Solutions. Industry outlook: Enterprises represented by ByteDance are leading the way in the AI market through the widespread application of core products such as Douyin AI, significantly improving reasoning capabilities and multi-scenario adaptability, providing a solid foundation for the implementation of AI Agent technology practices in China. This phenomenon will lead to a new round of growth opportunities in the ToB SaaS industry and lay the foundation for the incubation of a group of high-growth dividend companies in the China National Software & Service industry in the next five years. Investment advice: AI computing power, Agent core: Cambricon (688256.SH), Hygon Information Technology (688041.SH), Dawning Information Industry (603019.SH), Quantumctek Co., Ltd. (688027.SH), Suzhou Centec Communications (688702.SH) AI Agent, Agent elasticity (Douyin ecosystem): 1. TOB: KINGDEE INT'L (00268), Hand Enterprise Solutions (300170.SZ) 2. TOC: GigaDevice Semiconductor Inc. (603986.SH), ZTE Corporation (00763, 000063.SZ), Beijing Haitian Ruisheng Science Technology Ltd. (688787.SH) Prosperity type (innovation and creation): Beijing Kingsoft Office Software, Inc (688111.SH), Hygon Information Technology (688041.SH), Wuhan Dameng Database (688692.SH), Ninestar Corporation (002180.SZ), ZWSOFT (688083.SH) Financial IT: Hithink RoyalFlush Information Network (300033.SZ), Fujian Apex Software (603383.SH), Hundsun Technologies Inc. (600570.SH) Risks warning: AI application progress below expectations, risk of computing power sanctions, risk of policy implementation falling short of expectations, expectation of estimation falling short.