On January 6th, SenseTime-W (00020) experienced a strong surge in its share price, reaching an intraday high of HK$2.40, a gain of 7.14%. By the midday market close, the stock held steady at HK$2.40, with a substantial turnover of HK$1.662 billion and a trading volume of 705 million shares. This significant price increase was not a random occurrence; it was fueled by a combination of short-term catalysts from the "robotics and AI" thematic sectors, long-term fundamental improvements within SenseTime, and a resonance with positive industry trends, all further supported by institutional rating endorsements and amplified trading volumes providing both capital and sentiment backing, making it a focal point in the Hong Kong stock market's AI sector.

Prior to this, Galaxy Securities issued its inaugural research report covering SenseTime, in which it set a target price of HK$3.18. This price implies a substantial 47% upside potential from the closing price of HK$2.16 on December 10, 2025. Concurrently, multiple positive developments have provided additional momentum for the stock's strength. SenseTime recently launched a "Product Release Week," successively unveiling a range of new products and applications built upon its "日日新" (Rixin) multimodal large model.

These include the industry-first Seko2.0, an intelligent agent capable of simultaneously creating and orchestrating multiple episodes, a pioneering product in its field. On the day of its release, domestic AI chipmaker Cambricon had already completed Day-0 adaptation for SenseTime's self-developed "日日新" Seko series models. Other products introduced during the week included the Little Raccoon 3.0 AI assistant for office scenarios, the Ruying Marketing Agent tailored for e-commerce operations, as well as the Daxiao Robot and the Kapi Family series of AI products, collectively enriching its application ecosystem.

Galaxy Securities predicts that SenseTime will achieve a future compound annual growth rate of 30% and is expected to become profitable by 2027. As one of the top three players in China's LLM application market, SenseTime has established a full-stack service system covering AI infrastructure, multimodal large models, and customized industry applications. In the first half of 2025, revenue from its generative AI business surged to 77% of the group's total, establishing it as the core growth engine. The report forecasts that SenseTime's revenue CAGR from fiscal year 2024 to 2027 will reach 30%, growing from RMB 3.8 billion to RMB 8.3 billion, with profitability anticipated in 2027.

This outlook is underpinned by the positive impact of its "1+X" strategy—by independently and commercially operating innovative businesses such as autonomous driving, embodied intelligence, home robotics, and smart healthcare, SenseTime can concentrate resources on its core generative AI business while simultaneously cultivating a second growth curve through independent financing, leading to continuous optimization of operational efficiency and financial structure. According to Frost & Sullivan's "H1 2025 China Full-Stack AI Cloud Services Market Report," SenseTime's full-stack AI cloud services firmly hold the top position among native AI cloud providers. These solid capabilities collectively form the core logic for institutional optimism.

Breakthroughs in both its new product matrix and technological synergy are solidifying the foundation for growth. Galaxy Securities' positive expectations were quickly validated during the 2025 Product Release Week, as SenseTime unveiled a series of AI products that combine innovation with practicality, demonstrating progress in both product innovation and technological integration. On the product front, SenseTime concentrated on launching multiple new offerings designed to address industry pain points like "high energy consumption and difficult implementation."

The new Seko2.0 achieved three major functional upgrades: a comprehensively upgraded UI for an immersive creative experience, a multi-episode generation feature supporting continuous script creation for up to 100 episodes, paired with an Agent intelligent scheduling system enabling flexible associations between characters, scenes, and props. The Little Raccoon 3.0 AI Office Agent made significant leaps in delivery, comprehension, and workflow, evolving from generating "drafts" to delivering "finished results," from responding to "commands" to understanding "tasks," and from being a "point solution" to integrating into "workflows," achieving over 95% accuracy tailored for enterprise-level scenarios. The Ruying Marketing Agent covers the entire e-commerce operations chain, delivering remarkable results such as a 20-fold increase in store operational efficiency and a 6-fold acceleration in live streaming operations.

Furthermore, the open-source multimodal NEO architecture, as the industry's first native multimodal framework, requires only 390 million training data points—one-tenth of comparable models—to match top-tier performance. At the application layer, SekoTalk technology, with its industry-leading 25fps generation speed and 3.5-second first-frame latency, has already empowered the creation of hundreds of thousands of content pieces, with hit works garnering over 20 million views, fully demonstrating its technological prowess and commercial viability.

SenseTime's new product releases serve as a significant catalyst for valuation recovery, with Galaxy Securities projecting a 47% upside to HK$3.18. These breakthroughs in technological synergy and the concentrated launch of new products are not merely a display of SenseTime's technical achievements but represent a critical juncture for fulfilling market expectations, providing a short-term catalyst for the 47% upside projected in Galaxy Securities' report. Galaxy Securities points out that SenseTime's current enterprise value-to-sales ratio for fiscal year 2026 is 13x, close to its 3-year average, and has not yet fully priced in the growth potential of GenAI. The successful launch of new products is expected to be a major driver for valuation recovery.

The combined resonance effect stems from continuous breakthroughs in technological innovation, a clear strategic focus, and positive ratings from the capital markets. As the AI industry shifts from a "parameter race" to "value creation," SenseTime's full-stack layout, pragmatic product logic, and efficient strategic execution position it to consistently realize its growth potential.