Shenwan Hongyuan maintained its “Buy” rating for Fanshi Intelligence (06682), projecting a potential upside of over 80 percent for the artificial intelligence company’s stock.
“The company’s current income and business development are in line with expectations,” analysts at Shenwan Hongyuan said in a May 26 report, citing strong growth in its API and Agent AI divisions.
The rating follows Fanshi’s report of first-quarter revenue of 14.58 billion RMB, a 35.4 percent increase from the same period last year. The company also recently secured a long-term, $200 million contract with Huanxi Media Group for its new AI video generator, PhanthyMovie.
The major contract provides significant revenue visibility and validates the company’s focus on professional-grade AI content tools. Shenwan Hongyuan’s analysis gives Fanshi Intelligence a target market capitalization of 36.3 billion yuan.
The deal with Huanxi Media, a major film production company, will involve the use of tokens for Fanshi's PhanthyMovie platform, which focuses on creating stable and controllable video output for professional studios. The two companies will also jointly develop a new AI film and television content production platform.
Fanshi Intelligence’s API business has seen explosive growth, with token call volume in the first quarter of 2026 growing to nearly six times the level of Q1 2025. The Q1 2026 volume alone surpassed the entire 2025 yearly total by almost 40 percent.
The company’s Agentic AI business is also expanding rapidly, with the number of orders on hand at the end of the first quarter showing a 99 percent increase compared to the end of 2025.
The report suggests that market share expansion is currently more important than profitability for the company. The new contract and strong quarterly results may lead to a significant positive re-rating of the stock as investor interest grows.
This article is for informational purposes only and does not constitute investment advice.
