CICC: Initiate coverage on MINIMAX-WP(00100) with a "Beat Industry" rating, target price HKD 1109

CITIC Securities APP has learned that China International Capital Corporation (CICC) issued a research report stating that it has initiated coverage of MINIMAX-WP (00100) with an outperform industry rating, a target price of HKD 1,109.00, based on P/S valuation method, corresponding to a 2027 valuation multiple of 75x. The company is currently one of the few domestic firms capable of simultaneously advancing foundational model capabilities and commercializing AI-native applications globally, making it scarce in the AI sector.

CICC’s main points are as follows:

One of the earliest domestic foundational model manufacturers to focus on native multimodal fusion

With the advancement of Agents and world models, multimodal understanding and generation are gradually becoming essential foundational capabilities. Since its inception, the company has simultaneously developed text, speech, and video models, betting on multimodal fusion, forming a unified technology stack, and accumulating early experience.

One of the few domestic foundational model manufacturers capable of validating large-scale monetization in overseas markets

In the first three quarters of 2025, overseas revenue accounted for over 73%, covering more than 200 countries and regions. Through AI-native products and developer platforms, the company directly reaches high-paying users, rapidly expanding in mature markets such as Europe and North America, achieving self-sustaining growth and obtaining real market feedback.

Firmly executing the “technology as product” approach, accelerating model and product fit through a “front shop, back factory” model

The company requires model capabilities to be directly reflected in product experience. Its R&D and product teams work closely together, enabling new model capabilities to quickly be commercialized and launched, reducing friction during technological transformation.

An AI-native organization with a focus on efficiency, high talent density, and high productivity

The company deeply integrates AI capabilities into internal workflows. As of Q3 2025, it has only 385 employees, with 73.8% in R&D; the organizational hierarchy below the CEO is no more than three levels. An AI-native, flat, and efficient organization supports high-speed iteration of models and products.

What sets this company apart from the market?

The firm believes it has advantages in developing integrated multimodal models that combine understanding and generation; its “technology as product,” global reach, and high efficiency are scarce.

Potential catalysts

The release of new versions of the company’s models; industry technological advancements.

Profit forecasts and valuation

The firm expects the company’s revenue to be USD 71 million, USD 228 million, and USD 599 million in 2025-2027, respectively, with a CAGR of 170% from 2024 to 2027. The firm is optimistic about the company’s native multimodal technological capabilities and application realization, assigning an outperform rating and a target price of HKD 1,109 (27x P/S in 2027), representing a 31% upside from the current stock price. The company’s current valuation is 57x P/S for 2027.

Risks

Technological evolution, increased competition, regulatory compliance, talent attrition, market volatility.