HK Stock Market Move | PHANCY (06682) rose over 9% as its API business revenue in the first half of the year increased by 860% year-on-year. Macquarie has set an initial target price of HK$59.

PHANCY (06682) has risen over 9%, and as of the time of writing, it is up 9.47%, priced at HKD 29.58, with a transaction volume of HKD 247 million. On the news front, PHANCY recently disclosed its interim results for the first half of 2026, showing that the company achieved revenue of RMB 3.765 billion, a year-on-year increase of 43.4%; net profit attributable to the parent was RMB 119 million, marking a return to profitability; adjusted net profit attributable to the parent was RMB 150 million, turning from loss to profit compared to last year. During the reporting period, the three main segments collaborated effectively, with the API business generating revenue of RMB 464 million, a significant year-on-year increase of 860.8%, becoming an important growth driver for the group; the AI Platform business generated revenue of RMB 3.088 billion, a year-on-year increase of 30.0%; and the Agentic AI business generated revenue of RMB 214 million, a year-on-year increase of 4.9%. In the first half of the year, customer token call volume grew approximately 620% year-on-year, with available computing power resources expanding to 28,000 PFLOPS, and ModelHub has accumulated over 200,000 sets of "model chip" adaptation combinations. Macquarie has released a research report initiating coverage of PHANCY with an Outperform rating and a target price of HKD 59, representing an almost 100% potential upside from the current share price. The firm pointed out that the market is still predominantly interpreting the company through the paradigm of traditional enterprise AI software companies, while the companys business positioning and growth drive have undergone significant changes, transitioning from an enterprise AI software company to an AI infrastructure platform. The firm projects that the companys revenue will reach RMB 10.95 billion in 2026, a year-on-year increase of 53.5%, and believes that as revenue scales up and the growth of R&D and operating expenses lags behind revenue growth, operating leverage will gradually be released, with profit growth and valuation reassessment expected to be realized in tandem. It is noteworthy that PHANCY has maintained its position as the market leader in China's machine learning platform market for seven consecutive years (IDC data), with approximately RMB 7 billion in hand orders as of the first half of the year and having accumulated over 500 invention patents.