Zhipu Placement Completed, JPMorgan Raises Zhipu Target Price Again

Odaily Planet Daily News JPMorgan Chase raised its target price for Zhipu (02513.HK) by 20%. This is the second time in a week that the bank has raised its target price for this Chinese large model company, following a previous increase last Tuesday. The bank stated that the company's latest fundraising plan will help drive revenue growth. Analysts, including Olivia Xu, wrote in a research report that the new funds raised from this $4 billion stock placement can alleviate the bottleneck in computing power service supply while supporting subsequent model training investments.

JPMorgan stated that the newly added inference computing power resources are expected to be converted into Annual Recurring Revenue (ARR) within 12 months. JPMorgan raised its target price for Zhipu from HK$2,000 to HK$2,400; just last Tuesday, it had raised the target price from HK$1,800 to HK$2,000. Additionally, JPMorgan simultaneously lowered its target price for MiniMax (00100.HK). The company's share lock-up period expired last week and it launched a fundraising plan. The placement led to equity dilution, hence the lowered expectations. After lowering the target price last week, it has now been further reduced from HK$300 to HK$240. (Jin Shi)