CICC: Maintains OUTPERFORM rating on MININGLAMP-W (02718) with a target price of HK$293.

Zhongjin released a research report stating that it maintains the basic unchaned revenue forecast for MININGLAMP-W (02718) for 2026/2027. Due to the company's plans to increase investment in the research and deployment of edge-side models and computing power, the adjusted net profit for 2026/2027 has been revised down from 167 million yuan/299 million yuan to -192 million yuan/110 million yuan. The bank is optimistic about the long-term development space of the company's Agentic Services business, maintaining an outperform industry rating and a target price of 293 Hong Kong dollars (corresponding to 21x 2026e P/S), with the company currently trading at 15x/11x 2026e/2027e P/S. It represents a 44% upside potential. Zhongjin's main points are as follows: In 2025, the revenue basically met the bank's expectations, and the adjusted net profit exceeded the bank's expectations. Minglue Technology announced its 2025 performance: revenue of 1.426 billion yuan, a year-on-year increase of 3.2%, basically meeting the bank's expectations; adjusted net profit of 42.043 million yuan, turning losses into profits, exceeding the bank's expectations, benefiting from the operating leverage brought by AI empowerment. Optimization of company business structure In 2025, the company's core strategic revenue (excluding industry solutions) increased by 8.5% to 1.36 billion yuan. 1) Data intelligence business revenue increased by 0.5% to 1.26 billion yuan, with marketing intelligence business revenue decreasing by 1.7% to 718 million yuan; operations intelligence business revenue increasing by 3.7% to 542 million yuan. 2) Agentic Services business as a new strategic segment achieved revenue of 100 million yuan. Focus on edge-side models, launching Agentic Services business The business model has been upgraded from traditional "selling software" to charging based on performance, driving by computing power instead of manpower stacking, and closely binding with customers to deliver results. Current application scenarios include closed-loop effect advertising, closed-loop brand advertising, content e-commerce closed-loop, short film production and delivery. The company believes that the edge-side model has advantages in data security and marginal cost. Looking ahead to 2026, the management stated that they expect Agentic Services to extend beyond marketing and promote globalization, becoming an important source of revenue contribution. AI tools help improve operating efficiency and profitability significantly In 2025, the gross profit margin was 55.4%, a year-on-year increase of 3.8 percentage points, mainly due to the efficiency improvement brought by the application of AI tools, with the company stating that all employees have access to DeepMiner. The adjusted operating profit margin was 1.8%, a year-on-year increase of 1.7 percentage points, and the adjusted net profit margin recorded 2.9%, a year-on-year increase of 6.2 percentage points, turning losses into profits, benefiting from the operational leverage brought by AI empowerment. Risk warning: Technological obsolescence risk, intensified competition, market acceptance and demand fluctuations.