Manycore Tech's stock price plummeted 8.55% during the afternoon trading session. The sharp decline followed the release of a new research report from a major investment bank.

JPMorgan initiated coverage on Manycore Tech with a 'Neutral' rating and set a target price of HK$19. The bank noted that while the company is a leader in China's indoor design SaaS market and holds potential in the spatial intelligence field, its valuation appears stretched. The stock trades at approximately 26 times price-to-sales and about 180 times the expected 2027 price-to-earnings ratio, a significant premium compared to global design software leader Autodesk.

Furthermore, JPMorgan highlighted that the company's spatial intelligence business, a key part of its AI narrative, is still in the early commercialization phase with minimal revenue. The bank suggested the market may have already priced in much of its AI potential, leading to the reassessment of its stock price during the session.