JPMorgan released a research report stating it continues to view KNOWLEDGE ATLAS (02513) and MINIMAX-WP (00100) as structural beneficiaries of China's artificial intelligence adoption cycle. This view is supported by strong API demand, improving monetization capabilities, and the fact that enterprise-level AI workload expansion in the domestic market is still in its early stages. The firm maintained "Overweight" ratings on both stocks, with target prices of HK$950 and HK$1,100, respectively. Under an optimistic outlook, the two companies currently represent the theme through different models: KNOWLEDGE ATLAS has a clearer monetization framework and a more measurable execution path toward achieving approximately $10 billion in annualized revenue by year-end, benefiting from high transparency in API pricing and code adoption. MINIMAX-WP possesses greater upside potential for 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-WP could scale faster and increase revenue more rapidly if it can more flexibly allocate and deploy computing resources across regions, especially while the industry still faces GPU supply constraints. The report noted that key fundamental risks for the sector 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 relevant conditions remain favorable, technical pullbacks in the stock prices should be seen as buying opportunities. Should conditions deteriorate, the firm would adopt a more cautious view.
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