CICC: Initiate Zhipei with Outperform rating, target price of HK$688.

Zhongjin released a research report stating that it is optimistic about Zhipu's ability to iterate on its base model and realize the Coding scene, valuing the company based on the valuation of leading overseas large model companies. The company is rated as outperforming the industry with a target price of 688 Hong Kong dollars. The company is currently trading at 25 times P/S in 2028, which represents a 42% upside potential from the current stock price. This is the first coverage rating given with an outperform rating and a target price of 688.00 Hong Kong dollars. Based on the future P/S valuation method, the corresponding valuation multiple is 40 times P/S in 2028 with a discount rate of 7%. The company is a leading and world-class large model manufacturer in China.