JPMorgan released a research report stating that it continues to view KNOWLEDGE ATLAS (02513) and MiniMax-W (00100) as structural beneficiaries of China's artificial intelligence adoption cycle. This view is supported by strong API demand, continuously improving monetization capabilities, and the fact that the expansion of enterprise-level AI workloads in the domestic market is still in its early stages. The firm assigned an "Overweight" rating to both stocks, with target prices of HKD 950 and HKD 1,100 respectively.
Under an optimistic outlook, the two companies currently offer different models to reflect this theme: KNOWLEDGE ATLAS possesses a clearer monetization framework and greater measurability on its execution path to achieving approximately $10 billion in annualized revenue by year-end, benefiting from high transparency in API pricing and code adoption. MiniMax, on the other hand, has greater upside potential in its annualized revenue run rate. Compared to the current stock price, which reflects an annualized run rate of about $7 billion by year-end, MiniMax could scale faster and increase revenue more rapidly if it can more flexibly allocate and deploy computing resources across regions, particularly while the industry still faces constraints on GPU supply.
The report indicated that key fundamental risks for the industry include relative business model positioning, competitive landscape, pricing discipline, the technology capability gap between China and the US, and the ability to convert usage growth into annualized revenue. As long as the relevant conditions remain favorable, technical pullbacks in the stock prices should be viewed as opportunities to increase positions. Should conditions deteriorate, the firm would adopt a more cautious view.
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