CICC has published a research report maintaining its revenue forecasts for MININGLAMP-W (02718) for 2026 and 2027 largely unchanged. However, due to the company's plans to increase investment in the research and development of edge-side models and computing power deployment, CICC has revised its adjusted net profit forecasts for 2026/2027 downward from RMB167 million/RMB299 million to -RMB192 million/RMB110 million, respectively. The firm remains optimistic about the long-term growth potential of MININGLAMP-W's Agentic Services business, maintaining an "Outperform Industry" rating and a target price of HK$293, which implies a 21x 2026e price-to-sales (P/S) ratio. The stock is currently trading at 15x and 11x its 2026e and 2027e P/S ratios, indicating a potential upside of 44%. Key points from CICC's report are as follows.
MININGLAMP-W's 2025 revenue was largely in line with the firm's expectations, while its adjusted net profit exceeded forecasts. The company reported 2025 annual revenue of RMB1.426 billion, a year-on-year increase of 3.2%, which was broadly consistent with CICC's projections. Adjusted net profit reached RMB42.043 million, turning a profit from a loss and surpassing expectations, attributed to operational leverage effects driven by AI integration.
The company's business structure showed optimization in 2025. Core strategic revenue, excluding industry solutions, grew 8.5% year-on-year to RMB1.36 billion. Revenue from the Data Intelligence business increased 0.5% year-on-year to RMB1.26 billion, within which Marketing Intelligence revenue declined 1.7% to RMB718 million, while Operational Intelligence revenue rose 3.7% to RMB542 million. The newly established strategic segment, Agentic Services, generated revenue of RMB100 million.
Focusing on edge-side models, the company has launched its Agentic Services business, shifting its business model from traditional software sales to performance-based pricing. This approach emphasizes computing power over manual effort and aims to deeply integrate with client outcomes. Current application scenarios include closed-loop performance advertising, closed-loop brand advertising, closed-loop content e-commerce, and short video production and distribution. The company believes edge-side models offer advantages in data security and marginal cost. Looking ahead to 2026, management expects Agentic Services to expand beyond marketing into other sectors and advance globalization efforts, positioning it as a significant future revenue contributor.
The adoption of AI tools has significantly enhanced operational efficiency and profitability. The gross profit margin for 2025 was 55.4%, an increase of 3.8 percentage points year-on-year, primarily due to efficiency gains from AI tool implementation. The company reported full internal adoption of its DeepMiner platform. The adjusted operating profit margin was 1.8%, up 1.7 percentage points year-on-year, while the adjusted net profit margin was 2.9%, an improvement of 6.2 percentage points, resulting in a return to profitability driven by AI-enabled operational leverage.
Potential risks include technological obsolescence, increasing competition, and fluctuations in market acceptance and demand.
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