20250327-招银国际-商汤-W-00020.HK-Gen_AI_business_maintains_momentum_on_increased_AI_investment_5页_1mb

SenseTime (20 HK) Summary

Core Content

SenseTime, a leading Chinese AI technology company, reported its FY24 financial results, highlighting a total revenue increase of 11% year-over-year (YoY) to RMB3.77bn, slightly below the consensus estimate of RMB4.50bn. The decline in Traditional AI business revenue was the primary factor affecting the revenue performance. However, the company's Gen AI business showed robust growth, increasing by 103% YoY to RMB2.40bn, contributing 64% of total revenue. This growth was driven by a 92% YoY increase in operational computing power, which surpassed 23,000 Petaflops as of March 2025. According to IDC, SenseTime ranked among the top three in China's Large Model Application Market with a 13.8% market share.

Main Points

• Revenue Performance:

  • FY24 total revenue: RMB3.77bn (+11% YoY), below consensus.
  • Traditional AI business revenue declined, while Gen AI business revenue surged by 103% YoY.
  • FY25E revenue forecast: RMB4.80bn (+27% YoY), driven by the Gen AI business.

• Profitability:

  • Adjusted net loss narrowed by 21% YoY to RMB4.25bn, but still worse than the consensus estimate.
  • Adjusted net loss margin improved by 46ppts YoY to -112.7% in FY24.
  • Forecasted adjusted net loss for FY25E: RMB2.75bn, reflecting increased AI investment.

• Business Segments:

  • Gen AI Business: Strong growth with 64% of total revenue, supported by increased computing power and industry solutions.
  • Computer Vision Business: Revenue declined by 40% YoY to RMB1.11bn, with a focus on high-quality customers.
  • Smart Auto Business: Revenue dropped by 33% YoY to RMB256mn, mainly due to reduced V2X business revenue.

• Key Growth Initiatives for FY25E:

  1. Enhancing synergy between AI infrastructure, large models, and applications.
  2. Developing industry-leading multimodal large models and next-gen agent applications.
  3. Improving commercialization of the Computer Vision business.

Key Financial Metrics

Valuation and Target Price

• Target Price: HK$1.85 (revised from HK$2.00).
• Valuation Ratio: 10.5x FY25E EV/sales, aligning with sector re-rating.
• EV/Sales: 10.5x for FY25E, compared to a sector average of 6x.
• P/S: 10.0x for FY25E.

Analyst Ratings

• CMBIGM Rating: BUY.
• Potential Return: Over 15% over the next 12 months.

Shareholding and Stock Data

Shareholding Structure

Share Performance

Financial Highlights

• Gross Profit Margin (GPM): Declined to 38.5% in FY24, expected to drop further to 36.7% in FY27E.
• Operating Margin (OPM): Improved to -59.2% in FY24, expected to turn positive in FY27E.
• Adjusted Net Profit Margin: Improved to -57.3% in FY24, expected to narrow to -12.4% in FY26E and reach 0.2% in FY27E.

Risk and Disclaimer

• This report is not investment advice and should be used with caution.
• CMBIGM does not provide individually tailored advice.
• Information is based on public data and may be subject to change.
• There are potential conflicts of interest and risks involved in securities transactions.