JF SMARTINVEST (09636) has taken a crucial step in deepening its AI empowerment strategy. How do you view the investment opportunities brought by the increase in "AI content"?

On August 15th, the "AI Empowerment in the Securities Field - Shanghai Jiufang Zhiqing Technology Co., Ltd. Entering the 'Modu Space' Beautiful Co-building Ceremony" hosted by JF SMARTINVEST (09636) in Shanghai was held as scheduled. On the day of the event, Jiufang Zhiqing officially entered the "Modu Space" park in Xuhui District, Shanghai, in the presence of various guests. It is understood that Jiufang Zhiqing is a newly established company by JF SMARTINVEST to seize the era of explosive development of AI. In the future, Jiufang Zhiqing will accelerate the exploration of AI technology and product empowerment in the securities industry in a pioneering manner. As a new generation of securities investment consulting company, JF SMARTINVEST's Jiufang Zhi Investment uses a "technology + investment research" dual-wheel driving strategy to provide investors with a scientifically effective investment paradigm, with AI being a highly valued technological tool. Before the establishment of Jiufang Zhiqing, the company had already set up an artificial intelligence center, created a complete set of parameters for the nine-chapter securities domain large model system, and launched AI products like Jiufang Lingxi earlier this year, continuously deepening the AI application technology to enhance the efficiency of core products. GMTEight believes that Jiufang Zhi Investment's continuous strengthening of AI empowerment will have a positive impact on its transformation from "traditional investment consulting" to "smart investment consulting"; at the same time, from the perspective of the capital market, the increasing "AI content" of JF SMARTINVEST is expected to continue to optimize its visibility and flexibility, which also means that the company's attractiveness to investors will be further enhanced. Deepening AI empowerment strategy marks a key move. In recent years, as model capabilities rapidly evolve, AI is evolving into a stronger productivity in various fields. In the securities investment advisory industry, AI has also shown infinite potential in redefining the boundaries of "efficiency" and "experience." Faced with the upcoming new wave of technological revolution, JF SMARTINVEST chose to enter the game at the first opportunity. It is reported that the "Modu Space" where Jiufang Zhiqing entered is positioned as a "big model innovation ecological rainforest" and is the first generative artificial intelligence (AIGC) professional innovation ecological community jointly built by the Xuhui District government of Shanghai and top institutions such as the Shanghai Artificial Intelligence Laboratory. Jiufang Zhiqing's entry into the "Modu Space" this time aims to open up key empowerment channels, leverage policy potential transformers, build resonant industrial synergy spaces, and create a "gravitational pole" of top talents. If the pioneering layout around AI made by JF SMARTINVEST prior to the establishment of Jiufang Zhiqing can only be considered as a "vertical sector participant", then with the top-level heavy-duty setting laying a profound strategic significance for AI in the future Chinese market, the increasing investment by JF SMARTINVEST is also moving towards becoming a "national strategic implementer." At the same time as entering the high ground of AI innovation in China, Jiufang Zhiqing has also reached an important strategic cooperation with Tencent Cloud. According to reports, the cooperation between the two parties will focus on three core directions, including accelerating the efficiency of AI empowering tools, reshaping enterprise operating paradigms; creating new service paradigms, defining new industry standards; and building a solid intelligent cloud foundation to create a resilient technological base. In the author's view, given that Jiufang Zhiqing and Tencent Cloud have complementary strengths, their strong cooperation is expected to generate significant business synergies. In the future, based on Tencent Cloud's underlying technology and resource ecosystem, Jiufang Zhiqing is expected to better leverage its advantages in the financial technology sector, and the cooperation between the two parties is expected to effectively promote the upgrade and innovative development of industry cloud computing and intelligent infrastructure. "AI content" increasing marks a moment for value reassessment. The rapid development of AI is having a profound impact on the commercial landscape of the world today, and as technological visions become reality, the capital markets are reevaluating the investment value of AI concept stocks with greater enthusiasm. Just recently, during the earnings season, companies like Meta, Microsoft, and Google have successively reported Q2 earnings that exceeded expectations, once again confirming the high popularity of the AI race; post-earnings, the stocks of these tech giants have been racing to new highs, showing investors' optimism about the prospects of these companies. In the securities investment advisory industry, the addition of AI has also amplified economic benefits. According to the profit announcement previously released by JF SMARTINVEST, the trend of profit improvement has continued. In addition, as of the end of the period, JF SMARTINVEST's contract liabilities remained high, providing strong support for its robust performance in the second half of the year. GMTEight believes that JF SMARTINVEST's strong fundamentals are entering a new stage of growth, and the underlying logic lies in AI empowerment, with the company's flagship product "Zhi Investment" becoming increasingly intelligent and rich in product matrix. Take the unique nine-chapter large model in the securities domain for example, this model deeply integrates industry-specific knowledge bases supported by a massive amount of financial data, with features such as multi-scenario empowerment and vertical capabilities. Based on the nine-chapter large model in the securities domain, JF SMARTINVEST's core brand Jiufang Zhi Investment has launched a self-developed financial dialogue intelligent body Jiufang Lingxi, providing intelligent, professional, and personalized stock investment service support for target users from the perspectives of intelligent experience and professional investment consulting. JF SMARTINVEST's successful initiation of a strong product cycle is certainly due to the company's emphasis on research and development. Data shows that the company's research and development expenditure in 2024 was 319 million yuan, with a double-digit year-on-year growth rate; the proportion of research and development expenditure to total revenue reached 13.8%. During the same period, JF SMARTINVEST's research and development team consisted of 437 people, accounting for 17.7% of the total company staff. Looking back at Jiufang Zhiqing's entry into Modu Space, behind the move to seize the high ground of AI innovation in China, perhaps the "implicit message" is that Jiufang Zhi Investment will once again step up its integration of AI technology and investment advisory services. Listening to the song and understanding the meaning, Jiufang Zhi Investment's AI practice will provide more valuable experience references for the entire industry. At the same time, for JF SMARTINVEST itself, the company has built a unique competitive barrier at the technology empowerment level with AI technology as the core DRIVE, which has been recognized as having scarce investment value by more institutions. Not long ago, Cinda gave the company a "buy" rating in its in-depth report on JF SMARTINVEST, with analysts from the institution believing that JF SMARTINVEST's investment value is not only reflected in its current leading position in the industry but also in its grasp of future opportunities in financial technology and global markets. The company is expected to continue unlocking growth potential in the long term. And as an investment target with both certainty and growth potential, it is naturally a welcome sight to the market.