Hong Kong stock concept tracking | AI Agent will bring a blue ocean market to enterprise SaaS. Diverse payment models open up valuation space for software companies (including concept stocks)

UBS said that the rise in the Chinese stock market driven by the DeepSeek artificial intelligence application may not have reached halfway yet, as good liquidity and lower interest rates could provide opportunities for the future revaluation of AI concept stocks. "Based on the experience of the 4G, 5G, and cloud computing era, the uptrend typically lasts 1-2 years, and we believe the performance of related stocks will outperform by 50-100 percentage points." UBS believes that AI has created a certain potential for valuation growth, and technology stocks will contribute 12-20% to the Shanghai and Shenzhen 300 Index and Hang Seng H-Share Index ETF. Minsheng Securities released a research report stating that after the democratization of AI, the nature of competition in AI applications lies in data and access. The focus of the AI strategies of the two cloud giants Salesforce and ServiceNOW is on data and access: Data: Large models can only determine the lower limit of AI applications, while high-quality non-public data determines the upper limit of AI applications. Due to the inherent ability of SaaS to accumulate and store a variety of user data, its massive high-quality data is expected to become important fuel for AI applications, leading to a revaluation of value. Access: SaaS has significant access effects, as SaaS platforms can extend upstream or downstream workflows according to user needs, continuously tapping into user demands. In the current AI era, the access effect of SaaS is even more scarce. In general, AI Agent symbolizes a paradigm shift for software from "tools" to "digital labor." AI Agent makes software not just an "expense" but an "investment", expanding the potential market size of software vendors from enterprise IT budgets to the human labor market, achieving a substantial leap; General SaaS is expected to become the infrastructure for AI Agents, utilizing historical data mining to enhance the value of SaaS; Vertical SaaS leverages AI to achieve more capabilities and expand market size, with General SaaS and large model vendors complementing the ecosystem. AI Agent has stronger consumer attributes and can adopt diversified payment models in the future, opening up the valuation ceiling for software. SaaS is expected to undergo revaluation, accelerating the dual drive of migration to the cloud and adoption of AI Agents. From a valuation perspective, the current PS-TTM valuation of SaaS companies is generally lower than the average from 2019 to date, well below the valuation levels of the peak cloudization expectations in 2020, likely achieving a double-click in the AI era. Hong Kong software companies related to SaaS include: CRM: KINGDEE INT'L (00268) ERP: CHINASOFT INT'L (00354)