JP Morgan downgraded Xiyu Technology (MINIMAX-W 00100.HK) to Neutral and cut its
price target 63.6% to HK$400 from HK$1,100, saying the stock has not released a
new domestic SOTA model since M2 and remains behind peers on pure model
capability. The bank said Xiyu has reduced M3 pricing toward DeepSeek’s range,
while Zhipu AI (02513.HK) has doubled API prices year-to-date with rising
volumes. JP Morgan warned industry monetization is converging on API, coding,
agents and enterprise workflows, making model-leading capabilities increasingly
decisive for pricing power rather than product breadth or scale. It raised
Xiyu’s revenue forecasts for 2026–27 by 34–74% but trimmed 2028–30 forecasts by
5–21%, and kept an Overweight on Zhipu AI citing continued SOTA releases and
clearer commercialization.
