中国ai+2.0-迈入新阶段（英）-摩根史坦利-202605

Morganstanley

May10,202609:00PMGMT

AsiaTechnology

RESEARCHAsiAPAciFicINsiGHt

MoRGANSTANLEy&Co.INTERNATioNALpLc+ShawnKim

EquityAnalyst

Shawn.Kim@

+44207677-1018

MoRGANSTANLEyAsiALimiTED+

DuanLiu

EquityAnalyst

ChinaAI2.0–EnteringaNewPhase

+8522239-7357

Duan.Liu@

MoRGANSTANLEy&Co.INTERNATioNALpLc+

CindyHuang

EquityAnalyst

Cindy.Huang@

MoRGANSTANLEyAsiALimiTED+RobinXing

ChiefChinaEconomist

ChinaisonapathtodrivesimultaneousAIadvancementsacrossfrontiersectors,spanningrobotics,new-energyvehicles,and

+44207425-2915

LLMs.Its"AIPlus"initiativeisrapidlyinjectingitsnewfoundAIcapabilitiesandAIagentsintoworld-classsmartproducts,

servicesandembodiedintelligence.

+8522848-6511

Robin.Xing@

JennyZheng,CFA

Economist

Jenny.L.Zheng@

GaryYu

EquityAnalyst

Gary.Yu@

MoRGANSTANLEyTAiwANLimiTED+CharlieChan

EquityAnalyst

Charlie.Chan@

SharonShih

EquityAnalyst

Sharon.Shih@

MoRGANSTANLEyAsiALimiTED+

YangLiu

EquityAnalyst

Yang.Liu@

DaisyDai,CFA

EquityAnalyst

Daisy.Dai@

LydiaLin

EquityAnalyst

Lydia.Lin@

+8523963-4015

China’sAIisenteringanewphase–onedefinedlessbycatchingupincapabilityandmoreby

capturingvalue.Thenarrativehasshifteddecisivelyfromtrainingtoinference,fromtechnologyto

+8522848-6918

application,andfrompotentialtorealearnings.

+88622730-1725

Ratherthancompetingpurelyatthefrontier,Chinaisoptimizingforspeed,costefficiency,andsystem-levelintegration,enablingAItodiffuserapidlyacross

therealeconomy.Atthesametime,China

+88622730-2865

semiconductorself-sufficiencyratecontinuestoimprovefrom41%in2025to86%by2030inourestimates,supportingamoreresilientandcost-efficientdeployment.

Atthemacrolevel,AIwillbecomeamedium-termproductivitylever.We

+8522239-1911

estimatethatAIcouldliftChina'stotalfactorproductivitygrowthby~3ppt

cumulativelyoverthenextdecade,partlyoffsettingtheagingpopulationand

+8522848-7310

+8522239-1572

bringing2035potentialGDPtoalevel3.5ppthigherthanthetrajectorywithoutAIadoption.Butitsnear-termgrowthimpactwilllikelybemuted,withpositivesfromAI-relatedcapexcycleandmodestinitialproductivitygainsoffsetbytransitionallabordisruption.

S.KoREATEchnology

AsiaPacific

IndustryViewAttractive

Capturingthe"rateofchange".AIadoptionisbroadening,withenabler/adopterpenetrationrisingto~51%ofcoveragefrom43%intwoyears.Ourlatest1H26AlphaWiseChinaCIOsurveyindicatesthat47%plantostarttheirfirstAIprojectwithinthenextyear(anincreaseon40%in2H25).Theeconomicsarebecomingtangible:AIadoptershaveseenNTMEPSriseby62%inthepasttwoyears,

MorganStanleydoesandseekstodobusinesswith

companiescoveredinMorganStanleyResearch.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofMorganStanley

significantlyoutperformingMSCIChinaat10%,alongside12-13pptEBITmarginexpansionto16-17%by2027E,wellaheadofthebroadermarket.

Research.InvestorsshouldconsiderMorganStanley

Researchasonlyasinglefactorinmakingtheirinvestmentdecision.

InvestmentImplications.Whileenablersandfoundationalmodelsremainthekeyinvestmentthesisatthecurrentstage,widespreadadoptionbringspotential

Foranalystcertificationandotherimportantdisclosures,refertotheDisclosureSection,locatedattheendofthisreport.

investmentopportunitiestothosewhoreapthefruitsofAI.

+=Analystsemployedbynon-U.S.affiliatesarenotregisteredwithFINRA,maynotbeassociatedpersonsofthememberandmaynotbesubjecttoFINRArestrictionson

•Beisen(9669.HK),Meitu(1357.HK),BeijingRoborock(688169.SS),MideaGroup(000333.SZ)andEcovacsRobotics(603486.SS)standoutinourrisk-rewardanalysisamongAIadopters.

communicationswithasubjectcompany,publicappearancesandtradingsecuritiesheldbyaresearchanalystaccount.

•MiniMax(0100.HK)

andZ.ai

(2513.HK)arethekeyfoundationalmodelprovidersinChinaAI,whileAlibaba(BABA.N)isthebest-positionedfull-

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RESEARCH

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stackAIplatforminourcoverage.

•WehighlightCATL(300750.SZ/3750.HK),Yingliu(603308.SS)andSieyuan(002028.SZ)asthekeynamesinpower

•WecontinuetolikeCambricon(688256.SS),Iluvatar(9903.HK),NAURA(002371.SZ),AMEC(688012.SS),ACMR(ACMR.O),SMIC(0981.HK)andUnimicron(3037.TW)asthekeyAIenablersthatbenefitfromChina

Semiconductorlocalizationseculartrend.

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Morganstanley

RESEARCH

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OtherContributors

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RESEARCH

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ExecutiveSummary

China’sAIstoryisnolongeraboutcatchingup–itisaboutrewritingtherulesofthegame.

Overthepastyear,themarketnarrativehasshifteddecisively.ChinawasonceseenasastructurallyconstrainedAIecosystem–limitedbyaccesstoleading-edgechipsand

frontierresearch–butithassincedemonstratedadifferentkindofstrength:theabilitytoscale,adapt,andcommercializeAIfasterthananywhereelse.Thisdivergenceisnota

weakness.ItisChina’sdefiningedge.

Aswehighlightedinlastyear’sBluePaper(ChinaAI:TheSleepingGiantAwakens),China’sAImodelisfundamentallydifferent—state-coordinated,data-rich,andindustrially

integrated.Today,thatmodelismovingfromframeworktoexecution.AIisnolongerconfinedtolabsorhyperscalercapexcyclesbutitisspreadingrapidlyacrosstherealeconomy,embeddingitselfintoenergysystems,manufacturingprocesses,consumerplatforms,andurbaninfrastructure.

AShiftintheCenterofGravity.TheglobalAIraceisoftenframedaroundmodel

supremacy,butChinaisplayingadifferentgame.Ratherthanchasingtheabsolute

frontier,Chinaisoptimizingforspeedofdeployment,costefficiency,andsystem-levelintegration.AsAIdevelopmentismovingfromtrainingtoinferenceandapplications,threekeytrendshaveemergedinthepast12months.

•AIhasmovedfrominfrastructuretoearnings.ChinaAIadoptersarenow

achievingtangiblefinancialresults–risingearningsexpectationsandstructurallyexpandingmargins.AIisdrivingefficiencygainsandoperatingleverage,notjustrevenuegrowth,reinforcingitsroleasaproductivityengine.

•Thebottleneckhasshifted—fromcomputetopoweranddeployment.TheconstraintisnolongerwhetherAIcanbebuilt,butwhetheritcanbepowered,scaled,anddeliveredinrealtime.Thisisdrivinganewinvestmentcycleinenergysystems,particularlystorageandgridflexibility,asAIinfrastructurecollideswithphysical-worldlimitations.Theexponentialdemandiscollidingwithreal-worldpowerconstraints,makingenergystorageandgridintelligencecriticalenablers.

•ThenewbattlegroundsaremovingtonewenergysystemsandphysicalAI.

Fromhumanoidrobotstoautonomousvehicles,AIisbecomingembodied.China’sadvantage—itsmanufacturingbase,supplychaindepth,andreal-worlddata—positionsituniquelytoleadinthisnextphaseof“physicalAI.”

WhatHasChanged?

Chinahasmademeaningfulprogressinseveralfoundationalareas:

•AIcommercializationatscale:Leveragingitslargedomesticmarketandsuper-appecosystem,Chinaisacceleratingadoptionacrossbothconsumer(2C)and

enterprise(2B)usecases,particularlyvialow-cost,open-sourcemodelsandintegratedplatforms.

•Infrastructureandecosystembuildout:Hyperscalercapex,datacenterexpansion,andAIcloudgrowth(72%CAGRexpectedthrough2029)areenablinglarge-scale

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deploymentandinferencegrowth.

•Moreself-sufficient:DomesticAIchipsandsystem-leveloptimizationare

narrowingthecomputegap,withself-sufficiencyimprovingandcompetitivenessincreasinglyevaluatedoncost-performanceratherthanleading-edgenodes.

WhatStillNeedsDeveloping?

Despitetheseadvances,severalstructuralconstraintsremain:

•Computeandsemiconductorbottlenecks:Limitedaccesstocutting-edgenodes,EDAtools,andadvancedmanufacturingcontinuestoconstrainfrontierinnovation.

•MonetizationlaginenterpriseAI:Whileadoptionisaccelerating,especiallyincost-efficiencyusecases,revenuegeneration—particularlyin2Bapplications—remainsnascentanduneven.

•Laborandmacroadjustmentrisks:AI’snear-termimpactislikelytobedisruptive,withpotentiallabordisplacementprecedingproductivitygains,posingchallengesforincomegrowthanddemandstability.

MacroImplications

AIraisesChina’spotentialgrowth,butasamedium_termproductivitystoryrather

thananear_termcyclicalboost:WeestimatethatAIcouldliftChina’stotalfactor

productivitygrowthbyaround3pptcumulativelyoverthenextdecade,leavingthelevelofpotentialGDProughly3.5ppthigherby2035thanunderano_AIcounterfactual.Inthenearterm,however,thecontributiontoheadlinegrowthislikelytobemuted:whileanAI_drivencapexupcycleandearlytask_levelefficiencygainsprovidesupport,thesearelargelyoffsetbytransitionallabourdisruptions.

Indeed,despiteloweraggregateAIjobexposurethanintheUS,China’srapiddiffusion

paceandstartingpointofweakcorporateearningsmeandisplacementeffectscould

materialisefasterthanjobcreationoverthenext2–3years.Thisriskwouldbeamplifiedbythebroad_basednatureofAIsubstitution,spanningjuniorwhite_collarroles

(exacerbatingyouthunemployment),mid_levelprofessionaljobs(addingpressuretothealreadystressedmiddle-incomegroup),andevenlabour_intensiveservices(themain

absorberofemploymentlossesinrecentyears).Thiswouldaddtodeflationarypressuresifnotaddressedproperly.

Policymitigationisthusexpectedtointensify.Butprotectionislikelytoskewtowardlabour_intensiveservices,whilehigher_endcognitiverolesfacegreateradjustmenttopreserveGenAIcompetitiveness—implyingonlyapartialoffsettonear_termgrowthdrags.

InvestmentImplications

AI“rateofchange”underpricedbythemarket.Overthepast12months,AIenablers—particularlypower,semiconductorsandinfrastructure—havecontinuedtooutperform,drivenbytheinitialcapexcycleandstrongrevenuevisibilityacrossthesupplychain.

However,webelievethenextphaseoftheChinaAIcyclewillbecharacterizedbya

meaningfulcatch-upinapplication-layerperformance,asAIadoptionbroadensandbegins

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totranslateintotangibleincrementalearningsandmarginexpansion.

AIadoptionaccelerating.AccordingtoourChinaCIOsurvey,AI/MachineLearning/

ProcessAutomationdemandstayedstrongandedgedclosertothepeakin1H25with

biggestbiannualincreaseinspendingexpectations.ExpectationsforAI/LLM-relatedIT

investmentsenteringproductionin2026havedecreasedslightlybutremainwidespread.Currently,27%oforganizationshavelaunchedtheirfirstAI/LLMproject(adeclinefrom30%in2H25),while47%plantostartwithinthenextyear(anincreaseon40%in2H25),and15%expecttobeginintwoyearsorlater(downfrom20%in2H25).

AIadoptershaveseenNTMEPSrise~60%sincelate2023andEBITmarginsexpandby12–13pptthrough2027E,significantlyoutperformingthebroadermarket.Beisen,Meitu,BeijingRoborock,MideaGroup,EcovacsRoboticsstandoutonrisk-rewardamongAIadopterstocks(moredetails

:ChinaAIAdopter)

.

Acrossthestack,

MinimaxandZ.ai

arekeyfoundationalmodelprovidesinChinaAI,andwecontinuetoseestructuralleadershipamongChina’sinternetplatforms.Weview

Alibabaasthebest-positionedfull-stackAIplatform,whileTencentremainsstrongestintheapplicationlayer,leveragingitsecosystemtodrivemonetizationanduser

engagement.Cambricon,Iluvatar,Naura,AMEC,ACMR,SMICcontinuetobeourkey

picksundersemilocalizationthemes.WelikeUnimicron,ShennanCircuit,ShengyiTechandZhenDingaswellfortheirsubstrate/PCB/CCLexposuretoAIserversusinglocalAIchips;serverOEM/ODMlikeInspurandLenovoalsostandouttousasbeneficiariesofanincreasinglylocalizedAIserversupplychain,alongsideDeltaforitsAIserverpower

management/coolingsolutions.WealsohighlightCATL,YingliuandSieyuanasthekeynamesinpower.

Exhibit1:ChinaAI65

Source:MorganStanleyResearch;Redboxhighlightsthenewlyaddednamescomparedtopreviousversion

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Exhibit2:ChinaAI65SharePricePerformancecomparison

Past12MonthsRebasedSharePerformance

PowerSemi&HardwareInfrastructureFoundationalModelsApplicationsMSCIChina

Jun-25Jul-25Aug-25Sep-25Oct-25Nov-25Dec-25Jan-26Feb-26Mar-26Apr-26May-26

350

300

250

200

150

100

50

May-25

Source:FactSet,MorganStanleyResearch

Methodology:Constructingthe“ChinaAI65”Universe

The“ChinaAI65”frameworkisdesignedtoidentifycompanieswithmeaningfulandmonetizableexposuretoAIacrossthefullvaluechain.Ourmethodology

combinesatop-downthematicscreeningprocesswithbottom-upanalyst

validationandqualitycontroltoensurerobustness.ThisapproachbuildsonourproprietaryGlobalAIMappingSurveyandsectorresearch,whichtrackboththedegreeofAIexposureanditsfinancialmaterialityacrossourGreaterChina

coverageuniverse.

Screening

LeveragingourGlobalAIMappingSurvey,weconstructaninitialuniversebasedonAIexposureandcategorization(enabler,adopter,wildcardetc)inGreaterChina

coverageuniverse.Then,ratherthanfocusingsolelyonstaticlevelsofAIexposure,weprioritizecompanieswhereAIrelevanceisincreasingcomparedtothesurveylastyear—eitherthroughstrengtheningstrategicpositioningandnarrative,or

materialEPSimpactforthenext12months.

Detailsofthescreeningresults:

ChinaAISurvey–AIImpactBroadeningOut

Bottom-upValidationandQualityControl

Bottom-upanalystinputisthenappliedtovalidateeachname.Sectorteams

assesshowAItranslatesintorevenuegrowth,costefficiency,ormarginexpansion,supportedbyproductintegration,customeradoption,andcompetitivepositioning(e.g.,data,ecosystem,orscaleadvantages).Werelyonanalystsresearchand

judgementtoavoid"AIwashing".Nameswithpurelynarrative-drivenexposureorwithoutacrediblemonetizationpathwayareexcluded.

Detailsofindividualstocknarrative:

ChinaAIAdopter

RisksandLimitations

•AImonetization—particularlyinenterpriseusecases—remainsearlyanduneven,andrapidtechnologicalchangemayshiftcompetitivepositioningovertime.

•Datatransparencyvariesacrosssectors,andtheframeworkmayfavor

companieswithmorevisiblenear-termimpact,potentiallyunderweighting

8

earlier-stageopportunities.

•Outcomesalsoremainsensitivetomacroandpolicyfactors,includingsemiconductorconstraintsandinfrastructureavailability.

Performance

ToanalyzeequitymarketperformanceacrosstheAlecosystem,weclassifyChinaAl65companiesintofivethematicsegmentsspanningtheAlvaluechain.Thematicbasketperformanceiscalculatedusingfixedpoint-in-timeconstituentsasofMay2025.Constituentsremainunchangedthroughouttheanalysisperiod,withno

subsequentadditions,deletions,orcategorymigrationincorporatedintoreturns.Weadoptthismethodologytomaintainconsistencyandcomparabilityacross

performanceseriesovertime.

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ChinaAlSurvey–AllmpactBroadeningOut

OurfifthGlobalAIMappingSurveyshowsbroadeningAIadoptionacrosstheMS

coverageuniversewhilethelatestthematicrankingshowsChina'sAIpathretainingtoprank,givenearningsprospectsandvaluations.

Inthissection,weleveragetheglobalsurveydatatodiveintothelatesttrendsinChinaAIadoption.

Relevantlink:AsiaThematicAlpha:MappingAIAdoptionandDisruptionOpportunities

(February11,2026)

SteadyGrowthinAIAdoption

ChinamarketscontinuetoseeAIadoptionbroadeningout,withtheshareofAdoptersandEnabler/Adopters,asidentifiedbyouranalysts,risingfrom31%inourinauguralsurvey

(twoyearsago)to37%inthelatestsurvey.ThematerialityofAIimpacthasalso

increased:theshareofcompanieswhofaces"Coretothesis"and"Significant"impactfromAIincreasedfrom11%to16%overthelasttwoyears,withatleast37%ofthecompaniesnowseemoderateAIimpactvs.32%twoyearsago.

Exhibit3:AIadoptionbroadening–enabler/adopterincreasedfrom43%to51%in2years

Exposuredistributionacrosswaves

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Source:MorganStanleyResearch

Exhibit4:16%ofthecompaniessawsignificantAIimpact

Materialitydistributionacrosswaves

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Source:MorganStanleyResearch

AIAdoptersToBenefitFromCostEfficiencyFirst

Similartowhatwe'veseenintheglobalsurvey,mostAIadoptersinChinawillfirstbenefitfromcostefficiency(91%inChinavs.74-90%inglobalsurvey)vs.revenuegrowth(9%vs.10-26%inglobalsurvey),reinforcingtheviewthatAIinitiallywillhavemoreimpacton

marginsthanontop-lineacceleration.RevenuegrowthatthecurrentstagedominatesamongtheAIenablers,where79%oftheenablersseetheimpact,consistentwithwhatwe'veseenontheaggressiveAIcapexthatbenefittheentiresupplychain(IT)aswellasinfrastructurecompanies(utilities,materials).Excludingtheenablerconcentrated

segments,consumerdiscretionary(EV,homeappliances)andrealestate(propertymanagement)seethemostsignificantrevenuegrowthfromAI.

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Exhibit5:91%oftheadoptersbenefitfromcostefficiency

BenefitchannelbyAIexposure

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Source:MorganStanleyResearch

Exhibit6:IT,UtilitiesandMaterialsseethemostsignificantrevenuegrowthfromAI

Benefitchannelbysector

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Source:MorganStanleyResearch

RateofChangetoDriveOutperformance

ToassesstherelevanceofAI'srateofchange,welookedattheperformanceofstocksforwhichourChinaanalystsidentifiedachangeinmaterialityandexposureaspartofthere-mappingexercise.Weseesubstantialoutperformanceforstockswheretherateofchangeispositive.Comparingthefifthwaveofmappingtothefourth,consumerdiscretionary

groupsshowanotableriseinbothmaterialityandexposure.Withinthissegment,9%sawanincreaseinmaterialityand11%anincreaseinexposure.WithinUtilities,44%sawan

increaseinexposureduetoincreasingrelevanceofpowertodatacenterbuildout.Inindustrials,materialityrosefor16%drivenbythehumanoid-relatedsupplychain.

Exhibit7:Rateofchangebreakdownbysegment

Rateofchangebysector

45%

11%

9%

7%

5%

3%

1%

-1%

0%1%2%

Source:MorganStanleyResearch

Exhibit8:CompanieswithincreasedAIimpactmaterialityoutperformedMSCIChinaby88pptinthepastyear

Postiverateofchangeisaperformancedriver

IncreasedMaterialityBasketMSCIChina

Jun-25Jul-25Aug-25Sep-25Oct-25Nov-25Dec-25Jan-26Feb-26Mar-26

210

190

170

150

130

110

90

70

Mar-25

May-25

Apr-25

Source:MorganStanleyResearch

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ChinaAIAdopter

LeveragingourGlobalAISurveyandanalystinsights,we'veselected39namesunderourGreaterChinacoverageastheAIadoptersthatwouldwinthroughcostefficiencyandtop-line/margingrowthintheAIera.

AIAdoptersSeeaForwardEarningsBoost

ChinaAIadoptershaveseenaclearforwardearningsup-trendsincelate2023,withNTMEPSrisingfromc.100(Dec-23rebased)toaround167byMay-26,materially

outperformingMSCIChina,whichstayedbroadlyflatoverthesameperiod(

Exhibit9

).ThissuggeststhemarkethasincreasinglypricedinstrongerNTMearningsexpectationsforcompanieswithclearerAIadoptionstories.

PleaserefertothetableattheendofthissectiononhowAIdrivesindividualstocksnarrative

MarginExpansionSupportstheAIAdoptionCase

EBITmarginsforChinaAIadoptershaveexpandedsteadilyfromaround4%in2021to16-17%by2027E,implying12-13pptofcumulativemarginexpansionovertheperiod.The

trajectoryreinforcesourviewthat,atthisstage,AIadoptionistranslatingfirstintoefficiencygainsandoperatingleverageratherthanpurelytop-lineacceleration.

Whoarebetterpositioned?

Onourrisk-rewardframework,BeisenHolding,MeituandBeijingRoborockTechnologyscreenasthemostattractivenames,combiningthestrongestrisk-adjustedbasereturn

withfavorableskew.Morebroadly,stockspositionedintheupper-rightquadrantin

Exhibit55

lookbestplacedtooutperform,inourview.Wealsocompared2027eROEvs.currentvaluationrelativetopastthreeyearaveragetoseeiftheAIupsidepotentialhasbeenfullycapturedbycurrentmarketexpectations,MideaGroupandEcovacsRoboticsstandoutinthescreeninginadditiontothenameshighlightedabove.FII,ChinaResourcesMixcLifestyleServices,FutuandCATLstandoutinROEreturnwhilethevaluation

reflectsthatmarkethasalreadypartiallypricedintheAIpotential.

•Beisen:WelikeBeisenforitsincrementalrevenuefromAIwithhighprofitabilityandmarketsharegain,withAIARR,andweexpectittogrow10xfromRmb6mn+inFY25toRmb60mn+inFY26.

•Meitu:WeexpectMeitutosuccessfullymonetizeAIthroughitsphoto,video,anddesignapplicationswithpayingratiotodoubleinthreeyearsto8-10%by2028.

•BeijingRoborockTechnology:AdvancedAIalgorithmstosupportpremiumpositioning,fasterreplacementcycle,andimprovinggrossmarginwithfuturepotentialinhome-useservicerobotssupportedbyitsroboticcleanerswithmechanicalarmsandwheel-leg.

•MideaGroup:KeyAIbeneficiaryasoneofthegloballeadingrobotproducers

(KUKA)andincreasequicklyinChina.Itistransformingfromatraditionalhomeappliancescompanytoasmartmanufacturing/intelligentbuildingtechnology/

energysolutionprovider.End-to-endAIdevelopment(smartappliances+“factorybrain”automation)supportsbothtop-linegrowthviawhole-homeintelligence

ecosystemsandmanufacturing/industrialscenarioandapplications,whichalso

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drivesstructuralmarginexpansionviahighlyautomatedproduction.

•EcovacsRobotics:AIpoweredperceptionandnavigationupgradesenableproductionpremiumizationandTAMexpansion.

Exhibit9:AIAdoptersNTMEPStrendoutpacedMSCIChina

ConsensusEstimates-NTMEPS(2023Decrebased=100)

ChinaAIAdopterMSCIChina

180.0

170.0

160.0

150.0

140.0

130.0

120.0

110.0

100.0

90.0

80.0

Dec-23

Jan-24

Feb-24

Mar-24

Apr-24

May-24

Jun-24

Jul-24

Aug-24

Sep-24

Oct-24

Nov-24

Dec-24

Jan-25

Feb-25

Mar-25

Apr-25

May-25

Jun-25

Jul-25

Aug-25

Sep-25

Oct-25

Nov-25

Dec-25

Jan-26

Feb-26

Mar-26

Apr-26

Source:MorganStanleyResearch

Exhibit10:AIAdoptersAreSeeingEBITMarginExpansion

EBITMargin

2021202220232024202520262027

18%

16%

14%

12%

10%

8%

6%

4%

2%

0%

Source:MorganStanleyResearch

Exhibit11:

Risk-RewardSkew(Bull+Bear)

S

FII

-

-

LeastAttractiveBaseReturn/Vol(RV10Y)

ource:MorganStanleyResearch

Skew(Bull+Bear)/Vol(RV10Y)MostAttractive

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2027eROE

40%

35%

30%

25%

20%

15%

10%

5%

0%

P/Bvaluationdiscount/premiumvs.L3YAvg

Fll

45%

LeastAttractive

Exhibit12:P/Bvs.ROE

MostAttractive

Source:MorganStanleyResearch

Company

AIStory

Analyst

Report

BeisenHoldingLimited

BeisenisarareB2BsoftwareproviderinChinathatcangenerate

incrementalrevenuefromAIwithhighprofitability(80-90%gross

margins),asitsHCMAItranslatestoactualITspendingincreasesby

takingwalletsharefromhumanHRpersonnelandofflinetraining

institutions,withAIARRexpectedtogrow10xfromRmb6mn+inFY25toRmb60mn+inFY26.

Lin,Lydia

BeisenHoldingLimited:1HF26

Results:BeatandRaise(26Nov

2025)

MeituInc

MeitusuccessfullymonetizingAIthroughitsphoto,video,anddesignapplicationswithpayingratioexpectedtodoublein3yearsto8-10%by2028.

Lin,Lydia

MeituInc:IsAIEatingApps?It's

theLastMilethatMatters(2

Sep2025)

BeijingRoborockTechnologyCoLtd

AdvancedAIalgorithms(mapping,obstacleavoidance,automation)

supportpremiumpositioningandfasterreplacementcycles,sustainingrevenuegrowthwithimprovinggros