0732 GMT - Z.ai may still face intense competition, HSBC analysts say in a research note. Z.ai increased its December 2026 annual recurring revenue guidance to US$2.4 billion, in line with market consensus range of between US$2 billion and US$2.5 billion, they say. August annual recurring revenue was solid at US$1.6 billion, they say, while noting revenue and gross profit actually missed consensus. This is partially due to the company's strategy change, they say. HSBC maintains its hold rating on the stock, given continued intense competition and cut target price to HK$1,375,00 from HK$1,500. Shares last traded at HK$1,112.00.