Key Takeaways:
MINIMAX-W reported first-half revenue of USD117 million, up 283.1% from a year earlier, as August annualized recurring revenue topped USD800 million.
"MiniMax is a scarce globalized multi-modal large-model asset listed in Hong Kong," Guotai Haitong analysts wrote, assigning a 40x 2026 price-to-sales multiple that implies a target price of HKD449 with an Overweight rating.
Revenue from the open platform and other AI-based enterprise services reached USD74 million, up 703.1% year on year and accounting for 63.4% of total revenue, up from 30.3% in the first half of 2025. AI-native product revenue rose 100.9% to USD43 million. August ARR grew more than 400% within six months, with July token consumption 20 times January's level. Cumulative users exceeded 300 million, while global enterprise clients and individual developers surpassed 2 million, a tenfold increase from December 2025.
Gross margin improved to 17.9%, up 5.7 percentage points year on year, driven by better infrastructure efficiency. Research and development expenses totaled USD300 million, up 138.8%, below the revenue growth rate. The net loss narrowed 11.0% to USD360 million, though the adjusted net loss widened 111.2% to USD290 million. Overseas revenue accounted for 60.8% of the total, spanning more than 230 countries and regions.
The company launched MiniMax M3 during the period and open-sourced MiniMax H3, which generated more than 300 derivative models and surpassed 24 million downloads within a month. Cash stood at USD1.32 billion at the end of June, before the company completed a placement of 35.6 million Class A ordinary shares raising net proceeds of HKD9.44 billion and issued HKD6.5 billion in zero-coupon secured convertible bonds.
Guotai Haitong projects revenue of USD500 million, USD1.46 billion and USD3.57 billion for 2026 through 2028, with attributable net losses of USD820 million, USD810 million and USD680 million. Citi separately reiterated a Buy rating on the stock after August ARR topped USD800 million, adding to broker conviction in the Hong Kong-listed AI pure play.
The results contrast with peer Zhipu AI, which reported first-half revenue of RMB954 million, up nearly 400%, with August ARR of USD1.6 billion. Both companies remain loss-making as they pour capital into model training, though MiniMax's shift toward enterprise clients and overseas markets has lifted gross margin while keeping revenue growth above spending.
Shares fell 3.4% on the day with about USD310 million in short selling, as investors weighed the widening adjusted loss against the ARR momentum. Investors will watch the pace of enterprise client conversion and whether declining unit inference costs keep gross margin climbing through the second half.
This article is for informational purposes only and does not constitute investment advice.
