CICC: Maintains Outperform Rating on Paradigm Technology (06682.HK) with a target price of HK$40.

Wisdom Financial APP learned that CICC released a research report stating that considering the acceleration of commercial landing of Paradigm Intelligence (06682.HK) and the revenue drive brought by the volume of API business, the bank raised its 26e revenue forecast by 36.4% to 10.55 billion yuan. At the same time, combined with the gross margin adjustment and increased investment brought by the strategic transformation, the bank's adjusted 26e net profit forecast after deduction is 0.9 billion yuan. Introducing a revenue forecast for 27e of 13.43 billion yuan, the adjusted net profit after deduction is 3.0 billion yuan. The bank is optimistic about the company's optimized business model, maintains an outperform industry rating for the company, and considers the company's business is in a strategic adjustment period transitioning to a 1.4x 27e P/S, corresponding to a target price of HK$40. The current trading is at 1.0x 27e P/S, with a potential 43% upside.