Daiwa initiated coverage of MiniMax with a "Buy" rating and a target price of HK$530, citing the company’s focus on competitive model capabilities and cost efficiency as positioning it among the few pure-play AI large-model listed companies benefiting from China's AI commercialization trend. The report noted that recent weakness presents an attractive entry point, with upside catalysts over the next 12 months supporting a valuation re-rating. MiniMax has steadily narrowed the capability gap with leading Western model developers while maintaining a strong cost-efficiency advantage. Despite significantly lower R&D spending and fewer resources, its flagship M3 model currently ranks competitively in global benchmark tests, underscoring strength in model development and execution. Daiwa believes MiniMax’s differentiated value-for-money positioning enables it to effectively capture growing AI demand, particularly from cost-sensitive enterprises and developers. The translation is provided by third-party software, and the content is for informational or educational purposes only, not constituting investment advice.