According to a research report from GTHT Securities, driven by the deep integration trend of AI and brain-computer interface (BCI) technologies, coupled with policy support from the 15th Five-Year Plan, technological iteration and real-world application have become core drivers for the industry. With AI integration enhancing capabilities and the backing of policies and capital, multiple BCI technical pathways are advancing in parallel, accelerating the commercialization process and initiating a cycle of growth. The firm expresses optimism towards companies with comprehensive value chain deployment, strong AI empowerment, and close integration with clinical scenarios. Key viewpoints from GTHT Securities are outlined below.

BCI establishes a pathway for human-machine collaboration through its bidirectional information transmission capability, forming a development pattern where multiple technical routes progress simultaneously. As a direct channel connecting the biological brain with external devices, its core functions include interpreting neural signals, controlling external devices, and inputting information to the brain, enabling the replacement, repair, enhancement, and optimization of brain functions. Technically, non-invasive, semi-invasive, and invasive methods each have their advantages. Non-invasive BCI is currently mainstream due to its ease of use and high safety; semi-invasive BCI balances risk and efficacy, while invasive BCI holds an advantage in decoding complex neural activities due to its high spatiotemporal resolution.

The deep integration of AI technology with BCI has become a significant trend. Machine learning algorithms enhance the accuracy and efficiency of signal decoding, achieving bidirectional interaction, adaptiveness, and precise decoding, thereby propelling the industry towards a higher-level evolution of a "brain-machine intelligent community."

Global industry competition is intensifying, with China experiencing accelerated industrialization driven by both policy and capital. Globally, competition in core areas is led by the US and China. The US primarily focuses on invasive technologies, while China has made breakthroughs in non-invasive technologies and language decoding, simultaneously accelerating its catch-up in invasive technologies. There is essentially no generational gap between the two nations, although there remains room for improvement in the technological accumulation of core components within China. Domestically, BCI has been listed as a future industry in the "15th Five-Year Plan." Multiple policies have established a support system ranging from top-level design to implementation, covering key areas such as technological innovation, application scenarios, and medical insurance payments, accelerating industry standardization and clinical translation.

Capital enthusiasm has rebounded significantly, with the number of financing events and amounts achieving multiple-fold growth in 2025. Although the financing structure shows characteristics of early-stage investment, leading companies have already received substantial capital injections. Industrial agglomeration effects are gradually emerging, with midstream and downstream segments becoming the core focus of capital deployment.

Application scenarios are achieving breakthroughs across multiple points, with commercialization opening up long-term growth space. Leading companies are building advantages through multi-dimensional strategies. Healthcare is currently the most certain foundational market, having achieved industrial application in areas such as hearing impairment, tremor treatment, and motor rehabilitation. Several domestic hospitals have initiated clinical deployments, and the improvement of medical insurance payment systems is further facilitating implementation pathways. Scenarios in consumer and industrial fields are expanding rapidly. On the consumer side, leveraging non-invasive technology to cater to the needs of both disabled and healthy populations, this area has the potential to become a high-growth new sector with policy support. The industrial side focuses on high-risk and high-precision operational needs and is currently in the transition phase from testing and verification to commercial application. Leading enterprises are building competitive moats through full-chain R&D, industry-academia collaboration, and multi-scenario layouts, forming differentiated advantages in non-invasive technology application, AI integration, and clinical scenario integration. As technology matures and scenario penetration deepens, the industry is expected to embark on a period of scaled growth.

Investment Recommendations: Top Pick: iFlytek. Companies to Watch Include: Sinocrystal, Yanshan Technology, Dnake, Chengyitong, and Mailande. Risk Warning: Potential delays in technology R&D and commercialization, risks associated with policy regulation and ethical compliance, intensifying industry competition, and reliance on core components.