Huaxin Securities: WAIC Conference Strong Supply Media Sector Expected to Benefit from AI Application Enhancing Valuation

According to Zhitong Finance APP, Huaxin Securities released a research report stating that the WAIC (World Artificial Intelligence Conference) will be held in 2025, showcasing numerous high-quality scene demands and projects. The report indicates that the development of hardware and new technologies, from mobile phones to XR, AI glasses, AI toys, and embodied intelligence, requires application scenarios to support them, and the media is expected to undertake these applications. In the AI consumer sector, both AI hardware and AI application companies need commercialization to enhance their capabilities, and the media sector is expected to benefit from the open-source AI models, new AI product iterations, and the capitalization of new power enterprises driving valuation increases. From an industry perspective, the generative AI market is rapidly developing, and the commercialization of AI applications still holds potential.

The main viewpoints of Huaxin Securities are as follows:

Strong supply-side policies at WAIC 2025 are safeguarding the event

On the policy front, in July 2025, the Shanghai Municipal Economic and Information Commission will release "Several Measures to Further Expand the Application of Artificial Intelligence in Shanghai," aimed at implementing the national strategy for the development of a new generation of artificial intelligence. Through a series of policy supports, it will promote the widespread application of AI technology and create a world-class AI industry cluster. The measures include reducing the cost of using intelligent computing power (issuing 600 million yuan in computing power vouchers), expanding the application of large AI models (issuing 300 million yuan in model vouchers), and providing a 5% reward for sales or rentals of embodied intelligent robots and other products that reach a certain scale based on the approved contract amount. The combination of "vouchers + scenarios + funds + talent" aims to shift the AI industry from a "technology model" to "commercial applications," with the AI policy dividend period continuing.

The WAIC (World Artificial Intelligence Conference) in 2025 will host over 800 participating companies, with more than 305,000 offline visitors and over 2.36 billion online traffic. It will showcase over 3,000 cutting-edge technologies, including more than 100 "global debuts" and "China premieres" (such as Alibaba's Quark AI glasses, WPS Lingxi, Jietiao Xingchen, and MiniMax representing the entry of large models into the intelligent era), providing strong product supply. A total of 32 projects will be signed, with a total investment of 45 billion yuan and an intended procurement amount of 16.2 billion yuan. The event will hold 20 industry matchmaking meetings and 8 scenario release conferences, releasing 57 high-quality scene demands. Driven by competition and capitalization, commercial applications have also become an important direction for enterprises to focus on in the future.

How to view the monetization of AI applications from hardware to content and applications?

Every iteration of the information revolution is accompanied by innovations in hardware, from mobile phones to XR, AI glasses, AI toys, and embodied intelligence. The development of hardware and new technologies also requires application scenarios to support them, and the media is expected to undertake these applications. The commercialization progress can be observed from the 2G, 2B, and 2C ends, which also brings significant momentum for the media to move towards intelligent media. The boundaries of AI applications are expected to expand, exploring AI hardware application scenarios, multimodal integration, and fields such as digital humans, digital marketing, content generation, images, video, voice interaction, emotional perception, enterprise applications, e-commerce, and education. From a commercialization perspective, AI monetization models such as subscription fees and pay-per-use are anticipated. Looking ahead, the potential for 2G to procure AI hardware and software content, the MaaS (Model as a Service) for 2B is expected to replicate the SaaS enterprise service route, and 2C is expected to replicate the paid models in movies, audio, and video fields, indicating that commercialization exploration still holds potential What to Look for in AI + Media Applications?

From an industry perspective, according to Acumen Research and Consulting, the global generative AI market revenue is expected to reach USD 208.8 billion by 2032, with a compound annual growth rate (CAGR) of 35.3% from 2024 to 2032 (during which the Asia-Pacific generative AI market is expected to grow at a CAGR of 36.5%). At the same time, AI education is also expected to be a key component of AI applications. According to Verified Market, the global education AI market size is expected to reach USD 22.24 billion by 2033. Companies such as Rongxin Culture (301231.SZ), Tianzhou Culture (300148.SZ), and Doushen Education (300010.SZ) are all exploring new fields of AI applications.

Rongxin Culture is laying out AI smart hardware to drive the digitalization of children's education, launching the Lelequ Little Rocket AI Reading Pen, and actively connecting with quality IPs such as animated picture books to enhance content barriers. Tianzhou Culture has been deeply engaged in the educational support field for many years, launching the AI Calligraphy Pen (Tianzhou Zhimiao in Douyin live broadcast) along with an AI assessment system and APP courses, covering writing posture correction and effect evaluation. It will continue to promote the deep integration of new technologies with the cultural education industry, actively cultivating new digital and intelligent business formats to help the cultural industry achieve high-quality development.

On the consumer side of AI, represented by Bilibili (09626), the daily duration of AI content sales has increased by 100% year-on-year, indicating strong user demand for AI content. As new power companies begin to capitalize, from Zhiyuan Robotics to Yushu Technology to MiniMax, AI hardware and application companies need commercialization to support them. The media sector is expected to benefit from the open-source of AI models, the iteration of new AI products, and the capitalization of new power companies driving valuation increases. What to look for in AI + media applications? Attention can be paid to AI + digital marketing (BlueFocus, Zhejiang Wenlian, Yaoji Technology, Yili Media, Yinsai Group, etc.), AI + content (Mango Excellent Media, Wanda Film, Shanghai Film, BONA, Light Media, Huace Film & TV, CITIC Publishing, Zhongwen Online, etc.), AI + education (Tianzhou Culture, Rongxin Culture, etc.), AI + companionship (Aofei Entertainment, Talking Tom, Shifeng Culture, etc.), AI + beauty industry (Meitu), AI + community (Bilibili, etc.), AI + copyright (Fubo Group, Visual China, etc.).

Risk Warning

Risks of changes in technology industry policies; risks of cultural products produced by AI not being well-received; risks of AI applications not meeting expectations; risks of AI product commercialization progress being below expectations; data security risks; risks of recommended companies' performance not meeting expectations; risks of industry competition