On September 8, Z.AI fell 4.81% in regular trading, trading at HK$977.5 per share with turnover of HK$1.527 billion, extending a sustained selloff since its interim results release on August 31.

On the news front, Jefferies on September 7 cut its target price on Z.AI from HK$1,299.80 to HK$1,183.79, maintaining a Hold rating. The broker noted that while the company's year-end ARR guidance of US$24 billion exceeded expectations, its sustainability remains questionable. Jefferies further flagged that China's large language model sector is overcrowded and warned that gross margins could retreat in H2 as new GPU clusters come online.

The downgrade compounds ongoing pressure from Z.AI's H1 results, which showed revenue of RMB 954 million, up 399.7% year-over-year but falling short of full-year forecasts of over RMB 5 billion from JPMorgan and UBS. Overall gross margin declined to 26.4% from 50.0% a year earlier due to a revenue mix shift toward lower-margin API services. Despite multiple brokerages raising target prices and maintaining Buy ratings, the stock has now fallen over 60% from its June peak of HK$2,980, reflecting persistent market skepticism over LLM monetization paths.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)