The Zhitong Finance App learned that CICC released a research report stating that it maintains the Innovation and Qizhi (02121) “outperforms the industry” rating. Considering the decline in the industry valuation center, the target price is HK$4.3, which corresponds to the 2026 and 2027 market sales rates (P/S) of 1.1 times and 0.9 times, respectively. There is 31% room for improvement compared to the current stock price. The bank estimates that the company's revenue in 2026 and 2027 will be $1.66 billion and $1.91 billion, respectively. The company's revenue for the first half of 2026 increased 18.6% year-on-year to 829 million yuan, and adjusted net profit was about 3.19 million yuan. This is the first time since listing that the adjusted net profit for the first half year was corrected. The bank believes that the company will continue to deepen the “one model, two wings” core strategy to push industrial intelligence towards production-level application deployment.
CICC's main views are as follows:
China ranked fourth in the MaaS privatization deployment market, and its industrial model capabilities were recognized
At the end of October, IDC released the “China AI Software Market Semi-Annual Tracking, 26H1” report. The report showed that Innovation Intelligence ranked 4th in China's MaaS privatization deployment market. Its industrial model technical capabilities and privatization delivery capabilities have been recognized to a certain extent, confirming the commercial value of the vertical industry model in production scenarios.
Deepen the core strategy and build a software and hardware collaboration system
The company continues to deepen the core strategy of “one model, two wings”, comprehensively upgrade the AinOGC industrial body platform, propose the “industrial ontology+control engineering+intelligent coding” trinity agent development paradigm, promote the deployment of industrial intelligence to production-level applications, and accelerate the commercialization process of “software and industrial embodied robots”.
In terms of market strategy, the company created an FDE team model for large enterprise customers to accelerate customer-side AI transformation.
Revenue growth was steady in the first half of 2026, and adjusted net profit reversed losses
In the first half of 2026, the company's revenue increased 18.6% year on year to 829 million yuan. Among them, revenue from the “AI+ manufacturing” business increased 21.6% year on year to 676 million yuan, accounting for 81.5% of total revenue, consolidating the competitive advantage of the main business. The company sold part of Haoya Qizhi's shares on June 11, and its financial results are no longer consolidated.
In the first half of 2026, the company's gross margin increased 0.4 percentage points to 35.4% year-on-year, mainly due to the continuous improvement of platformization capabilities and standardization. The adjusted net profit is about 3.19 million yuan. This is the first time since listing that the adjusted net profit has been corrected in half a year, mainly due to increased market demand and optimization of operating efficiency.
According to the company's announcement, in the first half of 2026, the company used its own capital to repurchase about 961,600 Hong Kong shares and held them as treasury shares. The total repurchase amount was about HK$4,0397 million, demonstrating confidence in development.
Risk Alerts
Increased industry competition; continued business losses; loss of important customers; technology iteration faster than company innovation; risk of impairment of goodwill.