Citigroup: MiniMax-W(00100)H3 has significant cost advantages, maintaining a "Buy/High Risk" rating.

Citigroup has published a research report stating that MiniMax-W (00100) recently officially launched the H3, a general-purpose full-modal generative model that supports unified multimodal context understanding for text, images, videos, and sounds. It can generate native audio-visual content in dual-channel sound with a maximum length of 15 seconds and a resolution of 2K, providing commercial-grade content generation capabilities that can be widely applied in various business scenarios such as advertising, brand marketing, e-commerce, product design, UI/UX, and gaming. Citigroup maintains a Buy/High Risk rating for MiniMax, with a target price of HKD 533. Citigroup indicates that H3 is priced at less than one-third of mainstream models at 2K resolution, and less than half at 768P resolution, showcasing significant cost competitiveness. Peer ByteDance also recently officially released Seedance 2.5, which Citigroup believes reflects the intensifying competition in the AI video generation industry. Given Seedance's dominant position in the Chinese market and the user awareness of MiniMax's Hailuo in overseas markets, the firm believes this may prompt KUAISHOU-W (01024) Kling to release the long-awaited updates. While it is currently difficult to directly compare user feedback, it is believed that MiniMax H3, with its price advantage, may serve as an alternative choice for price-sensitive users.