Goldman Sachs: MiniMax-W (00100) model pursues the ultimate cost performance ratio and reaffirms the “buy” rating target price of HK$860

The Zhitong Finance App learned that Goldman Sachs released a research report saying that the MiniMax-W (00100) multi-modal strategy is its key differentiating advantage. The H3 model has already entered the final stage before launch and is expected to be launched soon. It is believed that it will have a profound impact on the multi-modal industry pattern, reaffirming the MiniMax “buy” rating, and the target price is HK$860.

Goldman Sachs pointed out that Yan Junjie, founder and CEO of MiniMax, revealed at an analyst conference recently that the future focus will be on pursuing the best cost performance for each of its models. In particular, the current M3 model processes trillion-level tokens every day, and open platform/API revenue has reached a healthy gross margin level. The goal is to eventually achieve a high double-digit gross profit margin. It is also expected that the M3 Pro, which will be launched from September to October, will have significant cost benefits.

Goldman Sachs expects MiniMax to be included in the Hong Kong Stock Connect in August of this year. In addition, the current market value is clearly discounted compared to the Chinese video generation model industry. The M3 model competitiveness strategy described by the company and the upcoming H3 multi-modal products are expected to be a positive driving force for annual recurring revenue (ARR) growth, driving significant valuation repair space in the second half of the year.