CICC keeps MiniMax Outperform at HK$786 target on valuation gap

CICC maintained its Outperform rating on MiniMax (00100.HK) with a HK$786 target price, citing a valuation gap between 23x and 59x 2027 P/S.

CICC said MiniMax's strengths in computing power, data, and algorithms position its next-generation models for improvement, while its multimodal build strengthens Agent and video-generation competitiveness, according to a research note dated August 24.

The target price corresponds to 59 times projected 2027 price-to-sales, versus a current valuation of 23 times, implying re-rating upside. JPMorgan separately raised its target to HK$260 from HK$160, or 12 times projected annualized recurring revenue of about $1 billion for end-2026, while lifting 2026-2030 revenue forecasts by up to 21 percent.

Shares surged more than 12 percent intraday on August 21 after MiniMax launched its multimodal creation platform, MiniMax Design, on August 20. The stock's inclusion in Stock Connect on August 6 adds southbound capital support.

MiniMax Design is built around the open-source multimodal generation model H3, released July 31. The platform uses an Agent to understand user requests, break down tasks, and invoke models and skills across the content chain, from asset processing to final delivery, including a 3D director's stage for positioning characters and adjusting camera angles.

JPMorgan flagged commercialization headwinds, noting the M3 model has yet to establish a moat in performance and price, facing pressure from leading models and DeepSeek's low-price strategy. Hailuo H3 also competes with integrated giants such as ByteDance and Kuaishou, which have full-ecosystem traffic and multi-stage monetization.

CICC believes H3 has entered the first tier of multimodal models, with multi-reference, video editing, and motion-graphics capabilities suited to advertising, e-commerce, and brand content. MiniMax's video models had generated more than 600 million videos by end-2025, providing a base for Design's push into professional subscriptions and enterprise services.

The rating gap implies CICC expects MiniMax's valuation to more than double as model capabilities and product adoption mature. Investors will watch the Hang Seng Index quarterly review on August 21 for new inclusions and the Hang Seng Tech Index methodology revision for further allocation support.

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