JPMorgan lifts Knowledge Atlas target to HKD1,400, cuts Minimax to Neutral

JPMorgan raised its price target on Knowledge Atlas (02513.HK) 47% to HKD1,400 and downgraded Minimax (00100.HK) to Neutral, diverging on China's AI model sector as pricing power becomes the key differentiator.

"Knowledge Atlas's ability to double API pricing while sustaining volume growth validates market recognition of its large-model value," JPMorgan analysts wrote in a June 12 research report.

The bank raised revenue forecasts for Knowledge Atlas for fiscal 2026 through 2030 by 26% to 42% and narrowed adjusted net loss estimates. For Minimax, JPMorgan cut revenue forecasts for fiscal 2028 through 2030 by 5% to 21% and widened adjusted net loss projections for fiscal 2026 through 2028.

The divergent calls signal a shakeout in China's AI model stocks, where pricing power is becoming the key valuation driver. Knowledge Atlas shares surged 28% on the upgrade, while Minimax fell 2.2%.

JPMorgan maintained its Overweight rating on Knowledge Atlas, encouraged by what it called the company's "Price Maker" behavior. The bank noted that Knowledge Atlas managed to double its API pricing this year while sustaining continued business volume growth, a contrast with competitors that have retreated from premium pricing.

Minimax's downgrade followed the company's pricing of its newly launched M3 model on June 8 at twice the price of the previous-generation M2.7 model, only to permanently cut the price by 50% one week later, effectively reverting to a level comparable to M2.7. JPMorgan said this suggests reduced visibility of its leadership position in large models.

The divergent analyst calls could drive capital rotation within the Chinese AI sector. Knowledge Atlas may see increased institutional buying given the 47% target hike and the pricing power narrative, while Minimax may face selling pressure as the downgrade and 64% target cut suggest loss of market leadership visibility. Investors will watch for upcoming API pricing announcements and model capability benchmarks from both companies as the next catalysts.

This article is for informational purposes only and does not constitute investment advice.