Galaxy Securities: Continuous implementation of AI technology applications, some companies are expected to fully benefit from future industry growth.

China Galaxy Securities released a research report stating that the continuous application of AI technology is driving profound industry transformation. Companies that have already applied AI technology are expected to continue optimizing production and service efficiency, product quality, and other aspects, giving them a first-mover advantage. At the same time, some companies participating in the AI consumer goods supply chain are expected to fully benefit from future industry growth. Key points from China Galaxy Securities include: Review: The digital foundation of light industry supports the implementation of AI. With the need for management increasing along with business scale, and external environmental pressures leading to rising costs, the importance of digital capabilities is highlighted, gradually becoming one of the core competitive strengths for companies. For the light manufacturing industry, industry leaders are seizing new market opportunities brought about by external digitalization (such as product digitization, channel digitization), while also digitally transforming their internal operational capabilities to strengthen overall competitiveness. This includes supply chain innovation, operational efficiency improvements, product service experience upgrades, and more. The historical accumulation of industry digitalization technology has laid a solid foundation for companies to apply AI. Industry chain - AI design: Enhancing the experience of customized home services. The introduction of AI technology in design processes has reconstructed the design service process. AI efficiently provides solutions and the ability to make repeated modifications, improving delivery efficiency on one hand, and reshaping store function division and design service processes on the other hand. This shift from the traditional "single store handling all designs" service model to "stores handling demands and AI design factories centrally designing and delivering products, with stores receiving the products for sales" reduces the requirement for store design capabilities, facilitating business expansion. From a company perspective, Guangzhou Shangpin Home Collection plans to establish the industry's first AI design factory in 2023, utilizing deep learning algorithms to optimize consumer service experiences; Easyhome New Retail Group Corporation aims to integrate three major intelligent platforms into DeepSeek's large model by 2025, achieving full-chain intelligence and further enhancing the company's innovation in AI design and intelligent home furnishings. Product end - AI glasses: The "Great Glasses War" ignites the market, accelerating AI application penetration. Due to price and user experience issues, AR glasses have struggled to gain widespread popularity. Development towards lightweight products began in 2019, gradually penetrating the consumer domain. In 2023, under AI empowerment, AI glasses experienced a breakthrough by integrating with AI large models to provide users with functions such as voice assistants, object recognition, translation, navigation, and more. Meta's Ray-Ban under Meta leads the market development, while several Chinese brands have successively launched new AI smart glasses since late 2024. With continuous iteration and upgrades, AI glasses products are expected to enhance user experience and gradually penetrate traditional glasses, potentially replacing them with high penetration rates, becoming the next-generation ubiquitous computing platform and terminal. Product end - AI toys: Empowering interactive experiences, advancing the play attributes. In 1999, Sony launched the world's first entertainment AIBO robot, starting the trend of domestic entertainment robots, with this product being reintroduced in 2018. From 2023 to 2024, as AI technology matures, the combination of AI and toys becomes increasingly common. Smart capabilities in toy categories on shopping platforms have significantly improved compared to ten years ago, with AI toys featuring functions like voice companionship and educational conversations capturing a certain market share in price ranges below one thousand yuan. Companies like Lenovo and Tesla are releasing AI-powered Siasun Robot&Automation toys, linking AI technology with the trend of toys, giving toys a new experiential value. Risk warning: Risks of AI+ consumer goods experience falling short of expectations; risks of consumer demand falling short of expectations; risks of intensified industry competition.