Is the domestic large-scale model Kimi igniting concept stocks an opportunity or a challenge?

Economic Observer reporter Cai Yuekun The "internal test" of the domestic large model Kimi was born, stirring up a pool of artificial intelligence (AI) concept stocks in the A-share market.

Kimi was born in October 2023 and is a large-scale model application launched by Beijing Dark Side of the Moon Technology Co., Ltd. (hereinafter referred to as "Dark Side of the Moon"), a domestic artificial intelligence startup. On March 18, 2024, the dark side of the moon announced that the Kimi intelligent assistant has supported 2 million words of ultra-long lossless context, and has started the internal testing of the product. The intelligent search function of Kimi intelligent assistant can actively search, analyze and summarize the most relevant pages on the Internet according to the user's question, and generate more direct and accurate answers.

After the news was announced, there was a lot of discussion about the experience of the Kimi app. In the A-share market, Kimi concept stocks were "ignited". As of the close of trading on March 22, Huace Film and Television (300133. SZ) 20cm daily limit, Palm Reading Technology (603533.SH) triple board, Zhongguang Tianxue (603721.SH) daily limit, Ciwen Media (002343.SZ) daily limit.

On March 21, due to the sudden surge in traffic, many users said on social platforms that the app and mini program of kimi smart assistant could not be used normally. On the same day, the dark side of the moon issued a statement stating that from 9:30 a.m. on March 20, officials observed that Kimi's system traffic continued to increase abnormally, and the trend of increasing traffic far exceeded the company's expected resource planning. As a result, since 10 a.m. on March 20, a large number of SaaS (software-as-a-ser-vice) customers have been experiencing the "429:engineisoverloaded" exception, and we apologize for the dark side of this month.

Guosen Securities said that Kimi has become the dawn of a domestic large-scale model, driving the innovation of the industrial chain. With its exceptional ability to handle long texts, Kimi is capable of handling up to 2 million words of input, showing great potential for lossless reading. This breakthrough not only improves the efficiency of content creation and organization, but also brings deepening and innovation to the fields of novels and script writing, and opens up new application scenarios in game interaction, AI companionship, and task execution in professional fields.

Kimi“吸睛”

As the world's first Chinese model to support 2 million words of context, Kimi is leading the era of GPT (an artificial intelligence model that uses natural language as input and output).

In October 2023, the dark side of the moon released Kim-i, which mainly has 6 functions: "long text summary and generation, online search, data processing, coding and user interaction, and translation", and is the world's first intelligent assistant product that supports the input of 200,000 Chinese characters.

According to aicpb.com data, in February 2024, the number of visits to KimiChat reached 3.05 million, an increase of 107.6% from the previous month, ranking third in the domestic AI product visit ranking, second only to Baidu Wenxin Yiyan's 10.06 million and Ali Tongyi Qianwen's 3.65 million.

On March 18, the dark side of the moon announced that the length of lossless contexts that Kimi can support has been increased from 200,000 Chinese characters to 2 million Chinese characters, and the closed beta test has begun, which has attracted widespread attention in the market.

Huaxi Securities Research Report pointed out that if the context length is understood as the "energy" of the large model, then Kimi can now read 500 or more files in one go, help users quickly analyze the content of all files, and support information query and screening through natural language. When Kimi was still 200,000 words long, its ability limit was still around 50 files. In the case study provided by the Dark Side of the Moon, it is shown that Kimi was provided with 500 resumes at one time and asked Kimi to find the corresponding resumes, and as a result, Kimi was able to accurately find the information that met the requirements from many resumes.

The Economic Observer reporter tested the full text of a 187-page annual report of a listed company into Ki-mi, and within 1 minute, only one page of core content was extracted, including the basic information of the listed company, financial overview (operating income, net profit, etc.), profit distribution, corporate governance and other ten core contents. This feature can help investors quickly understand the brief financial situation of a listed company.

According to public information, the dark side of the moon was founded by Yang Zhilin, a "post-90s" Tsinghua scholar, and was established on March 1, 2023, with team members including talents from international technology giants such as Google, Meta (the parent company of "Facebook"), and Amazon.

Currently, Yang Zhilin is an assistant professor at the Institute for Interdisciplinary Information Sciences at Tsinghua University and a protégé of Tsinghua professor Tang Jie. Yang Zhilin has worked at the "Facebook" Artificial Intelligence Research Institute and Google Brain.

Up to now, the Dark Side of the Moon has completed three financings and received investment from Sequoia China, Zhen Fund and other institutions. Its latest round of financing exceeded US$1 billion, with investors including Alibaba, Sequoia China, Xiaohongshu, Meituan, etc., with a valuation of US$2.5 billion (about 18 billion yuan), making it one of the major large-scale model unicorns in China.

Galaxy Securities believes that the number of visits to Kimi intelligent assistants continues to soar, accelerating the process of AI applications in the first year. In 2024, there are two conditions for the first year of AI application: first, the large model reaches the usable state: this can be seen from the rave reviews from Kimi users. Second, the large model is accessible to the public: Kimi is now open to the whole society.

A number of listed companies responded

The explosion of Kimi ignited the enthusiasm of investors, and concept stocks continued to be active. There are more than 200 questions about "Kimi" on the exchange's investor platform.

In the face of short-term market speculation, on the evening of March 21, including EclickWorld (301171. SZ), Zhongguang Tianxue, Zhangyue Technology, and a number of listed companies responded to the situation involving Ki-mi-related concepts in stock change announcements or interactive platforms.

EclickWorld said on the interactive platform that the company has been connected to KimiChat. At present, AI technology is being updated and iterated at an accelerated pace, and the company has been actively paying attention to the technical capabilities of AI and large models launched at home and abroad, as well as the technical application of AI products, carefully evaluating its commercial value in the field of advertising and marketing, and continuously optimizing and improving its product strength to meet the intelligent marketing needs of customers.

Zhongguang Tianxue reminded in the announcement of abnormal fluctuations in stock trading on the evening of March 21: "Recently, some media reported that the company is involved in 'Kimi concept stocks', and the company has no cooperation with Kimi at present. The company sells video rights to customers engaged in large-scale model business, but does not involve related AI business and AI technology. ”

According to the disclosure of Zhongguang Tianxue, as of March 21, 2024, the company's latest static P/E ratio is 319.84 times, and according to the China Securities Index, the average static P/E ratio of the radio, television, film and video recording production industry in the past month is 40.95 times, and the P/E ratio is significantly higher than the industry average P/E ratio. The company especially reminds investors to pay attention to investment risks.

Palm Reading Technology also issued an announcement on abnormal fluctuations in stock trading, saying: The company is integrating the existing AI model and reading APP in the market, but the relevant functional applications mainly focus on the company's existing main business, including pre-reading recommendations, interaction during reading, knowledge graph after reading, etc., related products are still in the small-scale user testing stage, and there is uncertainty about when to launch them to the market, which is expected to have no significant impact on the company's current business and operation.

Palm Reading Technology reminds that the static P/E ratio of the company's stock price at the current stage corresponding to the 2022 annual results is 225.18 times, and the average static P/E ratio (excluding outliers) of the CSRC Internet and related service industries to which the company belongs is 78.37 times through the Wind database. The company especially reminds investors to pay attention to investment risks.

Opportunities and challenges

Is Kimi concept stocks a "flash in the pan" or a medium- to long-term investment opportunity worth seizing?

On March 21, Wind released the Wind Kimi Concept Index, which contains 16 constituent stocks.

On March 22, A-shares opened low and went low, the Shanghai Composite Index fell 0.95% throughout the day, insurance, base metals, fine chemicals, catering and tourism, agriculture and other industries fell first, and concept stocks such as media, Kimi, and short dramas rose against the trend.

From the perspective of individual stocks, the trend of Kimi concept stocks is differentiated. As of the close of trading on March 22, while Zhangyue Technology and Zhongguang Tianxue harvested three boards, Insai Group (300781. SZ) fell more than 4%, and the stock price of TV and Radio Media fell more than 3%.

Minsheng Securities recommends paying attention to the continuous iteration of the model side. Kimi is currently used in the domestic model with good results, focusing on three main lines: first, the continuous iteration of the domestic model, and the subsequent launch of the multimodal model, which is expected to empower the application level. Second, the application layer is connected to models such as Kimi to improve the application effect. Focus on companies that are making progress in AI+ applications. Third, as a content production tool, the model is expected to bring a significant increase in production capacity and content accuracy in many content fields such as film and television/short dramas/short videos/games.

Regarding the potential challenges faced by Kimi, Guotai Junan said in the research report that Kimi supports 2 million words of context after the update, which means that the text understanding capacity of the model has changed substantially, and the application landing scenarios are also expected to expand. The risk points are that the commercialization effect of Kimi is not as good as expected and the business exploration of related companies is slowing down. GF Securities pointed out that the rapid improvement of the performance of domestic AI large models provides more options for AI application innovation and lowers the application threshold. On the other hand, downstream applications are also facing the challenge of homogenization brought about by relying on model providers, and the intellectual property rights of generated content are still a thorny and complex challenge in the promotion of commercialization.