The Zhitong Finance App learned that recently, the artificial intelligence industry has once again ushered in intensive catalysis, and major manufacturers are scrambling. As a leader in domestic enterprise-level AI platforms, the fourth paradigm (06682) is even more frequent. On March 29, the company released Prophet AIOS 5.0, a new industry model platform. Haitong Securities released its first coverage report on the fourth paradigm. It believes that the release of AIOS 5.0 has brought the technical capabilities of the company's AI platform to another level. The company's development is expected to enter a new era with the support of a strong AI platform. The first coverage was given a “superior to the market” rating, with a corresponding target price of HK$73.31-85.53.

As an industry pioneer and leader in the field of enterprise-level artificial intelligence, the fourth paradigm provides platform-centered artificial intelligence solutions and uses core technology to develop end-to-end enterprise-level artificial intelligence products, and is committed to solving the efficiency, cost, and value issues faced in the intelligent transformation of enterprises.

At present, the company has established three major business segments: the fourth paradigm seer AI platform, SHIFT intelligent solutions, and the fourth paradigm AIGS service, which are now widely used in finance, retail, manufacturing, energy and electricity, telecommunications and healthcare.

According to research by IDC, an authoritative international research institution, the AI model Seer AI platform developed by the fourth paradigm has been ranked first in China's machine learning platform market share for five consecutive years since 2018, and ranked first in China in the global machine learning operation platform (MLOps) vendor evaluation.

Haitong Securities believes that the fourth paradigm, as an industry pioneer and leader in the platform-centered enterprise artificial intelligence field, has deep accumulation in the field of AI platforms, and the Prophet AI platform has been able to bring stable income to the company. The agency predicts that with the continuous iteration of the Prophet AI platform, the company's video creative business will grow at 35%, 25%, and 20% year-on-year, respectively, in 2024-2026.

Along with the rapid development of the AI industry and the continuous iteration of the Prophet AI platform, the overall business ceiling of the fourth paradigm is also constantly rising, and the overall business ceiling of the fourth paradigm has been brought to the company. The field of implementation is constantly expanding, and the overall development of the company is worth looking forward to in the future.

Haitong Securities pointed out that the fourth paradigm has formed a systematic large model R&D system and commercialization capabilities, and over 4 years of accumulation has laid a high-quality foundation for the company's long-term future development in this field. With the continuous promotion of the company's AIGS strategy and the continuous iteration of the superimposed Big Model and Prophet AI platforms, the company's future large model implementation field is expected to continue to expand, thus driving the company's long-term development.

It is worth mentioning that on May 21, the fourth model issued an announcement stating that on May 21, the company repurchased 33,600 shares on the Hong Kong Stock Exchange at a cost of HK$1.7631 million, and the repurchase price per share was HK$51.35-54. According to information, the cumulative number of shares repurchased in the fourth paradigm in the past three months was 104,400 shares, accounting for 0.02% of the company's issued share capital. Since this year, the fourth paradigm has made many major repurchases, unleashed the company's confidence in future development prospects, and boosted the confidence of capital markets and investors.