Jinwu Financial News | Shangtang (00020) gained momentum near midday trading, and continued to rise in the afternoon. It was tentatively reported at HK$1.04, up 25.3%, with a turnover of HK$1,379 billion. Notably, the stock's cumulative increase this week was nearly 80%.
Haitong International said that Shangtang recently launched the 600 billion parameter large model “Daily New 5.0,” which has greatly improved knowledge, mathematics, reasoning and coding abilities, and comprehensively benchmarked GPT-4 Turbo. According to the report, “Nishi-Nisshin 5.0” not only targets GPT-4 Turbo, but also performs better than GPT-4 Turbo in the Chinese context.
According to the bank, since the current commercialization path for generative artificial intelligence (GenAI) is still unclear, it believes that Shangtang has been greatly underestimated. Considering the rarity of computing power infrastructure, the valuation is based on a net asset value method. The company's AI infrastructure and big language model are still far from generating profits. Maintaining the “better than the market” rating, the target price is HK$1.5, and it is believed that it is well positioned under the GenAI boom.