HK Stock Market Move | SENSETIME-W (00020) surged over 7% in the morning session, with multiple performance indicators showing improvement as the company's business model undergoes a transition.

SENSETIME-W (00020) rose over 7% in early trading. As of the time of writing, it is up 6.32%, priced at HKD 1.515, with a transaction volume of HKD 837 million. In terms of news, SenseTime announced its mid-term performance, achieving a revenue of RMB 2.911 billion in the first half of the year, a year-on-year increase of 23.4%. Gross profit reached RMB 1.206 billion, up 32.9% year-on-year; the gross profit margin stands at 41.4%, an increase of 2.9 percentage points from the previous year. The group disclosed for the first time a recurring revenue of RMB 1.14 billion, accounting for 39.3%, and achieved a profit of RMB 617 million according to International Financial Reporting Standards for the first time. Among this, revenue from generative AI amounted to RMB 2.33 billion, making up nearly 80%; overseas business revenue increased by 127% year-on-year, far exceeding the overall growth rate of the group. In the report "SenseTime (00020) 2026 Mid-Term Report: Accelerating Gross Profit Growth, Changing Business Model, Improved Profit Quality," it is stated that the significance of the profit announcement lies not in the RMB 617 million figure itself, but in confirming a shift in valuation anchors. SenseTime is transitioning from a model company that "sells APIs and computing power" to a service-oriented company that "delivers reliable multimodal intelligent capabilities." The valuation anchor is shifting from model capabilities to commercial monetization capabilities, which is what the market should truly reevaluate.