Changes in Hong Kong stocks | Paradigm Intelligence (06682) rose more than 2% in early trading and was covered for the first time by J.P. Morgan Chase: the API business is expected to become the second growth curve

The Zhitong Finance App learned that Paradigm Intelligence (06682) once rose more than 2% in early trading. As of press release, it rose 1.67% to HK$28.06, with a turnover of HK$11.5999 million.

J.P. Morgan Chase's latest research report covered Paradigm Intelligence for the first time, giving it an “gain” rating. The target price is HK$50, which is a potential increase of close to 80% from the current price. The price target is based on 15 times the 2028 EV/EBITDA forecast. J.P. Morgan believes that the paradigm is a scarce investment target in the AI circuit. The company is benefiting not only from the continued increase in AI computing power and token usage, but also from the structural optimization needs brought about by the increasingly diverse computing power environment in China.

J.P. Morgan pointed out that the paradigm AI platform business provides the company with a steady foundation for growth, and the value of its AI infrastructure products such as vGPU and ModelHub is expected to be further highlighted. Against the backdrop of tight computing power supply, the AI Platform business still achieved 30% revenue growth in the first half of 2026. With independent third-party positioning, the company can provide enterprises with cross-chip and cross-model adaptation, scheduling and optimization capabilities, forming a differentiated advantage in the two major fields of AI infrastructure optimization and enterprise AI implementation. J.P. Morgan Chase has a positive view of the company's future growth and profit margin increase. Its forecast for Paradigm's 2028 net profit is 37% higher than the agreed market forecast.

The API business is expected to become the company's second growth curve. In the first half of 2026, Paradigm API business revenue reached 464 million yuan, an increase of 861% over the previous year. J.P. Morgan believes that the API business is a key part of transforming heterogeneous computing power, model adaptation, and inference service capabilities into large-scale token revenue, and is expected to maintain the fastest growth rate among the company's business segments from 2026 to 2028.

As high-performance open source models continue to emerge, the complexity of enterprise deployment and operation and maintenance increases simultaneously, the value of the paradigm as an independent third-party platform will be further unleashed. J.P. Morgan predicts that as computing power utilization and inference service efficiency continue to improve, the gross margin of the paradigm API business is expected to gradually approach 30%, driving the company to achieve rapid revenue growth while improving profit margins, and the profit inflection point is further evident.