Xiaomo: First Premium Commercial Soup - W (00020) “Plus” Rating Target Price HK$2

The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that the first commercial tang-W (00020) rating “increased”, and the target price for the end of December 2027 is HK$2. The bank described the company's infrastructure as the core, deployment and multi-modality as the driving force for growth, and the target price is estimated at about 15 times the expected corporate value/EBITDA in 2028.

According to the bank, Shangtang has transformed from a computer vision company to an AI platform covering infrastructure, models, and applications. The company's most prominent current scarcity is its ability to transform large-scale, heterogeneous computing power into reliable production-grade intelligence. The company has ten years of enterprise-level AI experience, and has accumulated customer relationships and implementation capabilities. As AI applications move from the experimental stage to the production stage, these advantages will become more and more important. Recurring revenue increases, gross profit growth, etc. all provide early evidence that this transformation is being transformed into better financial quality.

The bank now predicts that the company's compound annual revenue growth will reach 28% between 2026 and 2028. The 2028 revenue and profit forecasts are higher than the market consensus of 3% and 148%, respectively; it predicts an adjusted loss to profit of RMB 179 million for the 2027 fiscal year.