CLSA: Z.AI (02513) raises year-end ARR guidance to US$3 billion, rating "Outperform"

CLSA issued a research report stating that Z.AI (02513) held an investor conference call to update on its latest business situation following its recent US$5 billion strategic financing. Management raised its year-end ARR guidance from US$2.4 billion to US$3 billion, with a rating of "Outperform." The strategic financing includes an H-share placement and convertible bonds, totaling US$5 billion. The company stated that after two rounds of financing, computing power is no longer a constraint on near-term ARR, and it has established partnerships with domestic and international cloud service providers, which are expected to unlock global monetization potential. Management revealed that recent ARR has exceeded US$1.8 billion and further raised its year-end ARR guidance from US$2.4 billion to US$3 billion, driven by strong coding demand and rapidly growing cowork demand. Based on current computing power multipliers, management expects the US$5 billion computing power investment to at least US$2.4 billion in revenue. One month after the launch of GLM-5.3, cowork has secured over RMB 1 billion in orders, which will be recognized over the next one to two years. More than 100 enterprises have embedded GLM into their cybersecurity products and workflows; Zcode users have surpassed 2 million, ranking it among China's top three coding agents.