Daiwa: Z.AI (02513) risk-reward has improved significantly; reiterates "Buy" rating

Daiwa released a research report stating that Z.AI (02513) has raised its 2026 expected annual recurring revenue target to US$3 billion, and reiterated its "Buy" rating. The bank believes that industry dynamics are changing rapidly, including falling token prices and rising scrutiny of the long-term economic benefits of models, requiring a more prudent assessment of returns; however, with the stock's valuation reset to approximately 14 times 2026 expected enterprise value/ARR, the risk-reward has improved significantly. The bank mentioned that Z.AI's approximately US$5 billion financing will be used to expand computing power, removing near-term revenue growth constraints, and that there are no plans for further equity financing before a potential A-share listing.