JPMorgan has released a research report on Z.AI (02513), noting that its first-half revenue reached RMB 954 million, a 400% year-on-year increase. The cloud/API segment generated RMB 825 million in revenue, up 2,736% year-on-year, which largely aligns with market expectations and now accounts for 86.5% of total revenue.

The bank has raised its revenue forecasts for 2026 and 2027 by 14% and 18%, respectively, while lifting the target price from HK$1,800 to HK$2,000, with an reiterated "Overweight" rating.

More critical updates have emerged from the period after June. Z.AI's annual recurring revenue (ARR) reached US$1.6 billion in August, implying approximately US$133 million in revenue for that single month alone. This figure already surpasses the US$123 million (RMB 825 million) generated by the entire API business in the first half. Management now guides for an ARR of US$2.4 billion by year-end, a significant upward revision from the previous guidance of US$1 billion.

JPMorgan continues to hold a positive view on Z.AI's positioning in China's large language model sector, citing its rapid model iteration, effective conversion of capability improvements into paid usage, and sustained enhancements in reasoning capabilities.