Komo: Increase the target price of Zhi Pek (02513) to HK$2,400 due to brighter revenue prospects

The Zhitong Finance App learned that Xiaomo released a research report stating that the target price of Smart Spectrum (02513) was raised from HK$2,000 to HK$2,400 to maintain an “incremental” rating due to a brighter annual recurring revenue outlook. The bank believes that the basic model industry is entering a more capital-intensive stage, and the ability to obtain capital will support a longer model development cycle and infrastructure expansion. Ultimately, however, the return on investment still depends on whether companies can turn resources into increased model capabilities, customer adoption, and annual recurring revenue growth. As far as Smart Spectrum is concerned, demand is currently close to the upper limit of service capacity. The additional computing power resources are expected to be converted into annual recurring revenue growth within 12 months, and the conversion effect of this financing is quite obvious.