Research Report Express -- 2.11

1. Market Overview [Taogu Ba]

On February 10th, A-shares experienced a decline in trading volume and a correction, with the three major indices fluctuating and consolidating. By the close, the Shanghai Composite rose 0.13% to 4,128 points, the Shenzhen Component increased 0.02%, and the ChiNext fell 0.37%. The total trading volume across both markets was 2.11 trillion yuan, down more than 140 billion yuan compared to the previous trading day. Throughout the day, 2,195 stocks rose, while 3,128 declined.

Future Market Outlook and Reflections The market shift has moved from index recovery to sector rotation, with the frequency of strength and weakness switching between sectors likely to accelerate. Although short-term volatility has increased, the core thematic support remains strong. Capital continues to oscillate around compelling narratives, which may lead to a more pronounced structural “red envelope” rally.

2. AI Web Series Perspective Update 0211

Cognitive Restructuring: From Childish Anime to Web Literature Visualization (#Space is Much Larger Than Imagined) Many previously equated web series with juvenile anime, but currently, web series are simply a medium for AI-generated videos, better showcasing the creative ideas in online literature. Compared to live-action short dramas, AI web series have a higher performance ceiling, especially in fantasy and surreal genres. In lower-tier markets, audiences’ demand for mindless web literature far exceeds that for anime. Web series are gradually eroding the market share of short videos and online literature, with potential space exceeding 100 billion yuan.

Commercial Closed Loop: #AI Web Series is the Only Scene Where AI-Generated Videos Have Truly Achieved Product-Market Fit (PMF) Major companies are eager to enter the AI web series track, seeking quick ROI and monetization channels after years of AI development. The technological gap between domestic and international models has largely leveled. This means competition is shifting from computational power to content distribution and engineering efficiency. #This is the application domain with the least implementation resistance and the clearest monetization path.

Spring Festival as an Industry Penetration Window The Spring Festival holiday is a peak period for content consumption. Major platforms have launched intensive content incentive programs. #We believe this period will witness rapid breakout of web series entertainment formats.

Spring Festival Warm-up: ByteDance Chain is Worth Expecting! #On February 17th, ByteDance’s AI full-scenario capabilities will debut prominently on the Spring Festival Gala. ByteDance will leverage this national-level platform to showcase multi-modal AI capabilities such as Doubao and Seedance 2.0, #and ByteDance Chain is expected to deepen during the holiday. Core: Deca Co., Ltd. (the most authentic target for ByteDance AI web series).

3. [DeepSeek Long Context Upgrade, AI Programming Industry Chain Revaluation Initiation]

DeepSeek’s new model has launched, with context capacity increased from 128K to 1M tokens, nearly tenfold information carrying capacity, capable of processing long texts equivalent to “The Three-Body Problem” in one go. This breakthrough in long-context ability fundamentally enhances cross-document understanding, complex engineering reasoning, and multi-round task orchestration. Compared to overseas competitors, one of the core barriers for Claude under Anthropic is #super-long token processing. As knowledge updates are current through May 2025, the model’s real-world applicability and engineering practicality have significantly improved, fueling market expectations for the DeepSeek V4 code upgrade. #AI programming is shifting from “tool experimentation” to “productivity replacement.”

Data and Developer Ecosystem Benefit First #Daily Interaction has long focused on data intelligence and developer services, accumulating vast label systems and developer resources.

Low-Code Platforms Meet Enterprise Needs #Puyuan Information, JIN Modern integrate domestic large models to generate code and build applications via natural language, opening early enterprise scenario opportunities. #Zhuoyi Information promotes embedding models into development environments, enhancing engineering implementation.

Edge-side Intelligent Agents Expand Scenarios #Zhongke Chuangda, Zhongke Lansun, Lexin Technology, etc., leverage AI operating system capabilities to accelerate integration of smart terminals and edge applications.

Computing Infrastructure Provides the Foundation #UCloud, Hanggang Steel, YunSai ZhiLian, and other domestic cloud computing and computing power service providers benefit from increased model training and inference demands, with assured computing elasticity.

Core Viewpoint: DeepSeek V4 is expected to become a key catalyst in the AI programming sector. It is recommended to follow the main line of “Data Ecosystem → Low-Code → IDE Tools → Edge Intelligent Agents → Computing Base,” capturing opportunities for technological upgrades and performance realization.

4. Electronic Fabrics: Next Storage or Optical Fiber?

Currently, the mainstream price for 7628 fabrics is 5.2 yuan/meter, compared to a peak of 8.8 yuan/meter in the last cycle, just reaching the mid-level. If prices return to the high point, the net profit per meter for 7628 fabrics could increase by 2.7 yuan/meter. Based on this, we estimate annual performance growth for leading companies: Jushi +3.1 billion, China National Materials +1.2 billion, International Composite Materials +1.6 billion, Honghe +540 million, with upside potential not fully priced in yet. Fabric weaving machines are a global hard constraint. Special fabrics have less than one-third the efficiency of thick fabrics per machine but can generate five to dozens of times higher profit per unit. As long as profit margins exist, capacity will continue to shift toward specialty fabrics, tightening supply of ordinary fabrics. #This path has been repeatedly validated in storage, optical fiber, and other sectors—high-end capacity displaces low-end, which benefits lower prices. Electronic fabrics are breaking out from “building material assets” to “electronic assets.” Last night, Taoyao was forced to halt production due to shortages of ordinary electronic fabrics, highlighting their importance. #Breaking out is the beginning of valuation reshaping.