PHANCY (06682) climbed more than 2% during Tuesday morning trading before settling with a 1.67% gain at HK$28.06, with turnover reaching HK$11.6 million. The move follows JPMorgan’s first-ever research coverage on the company, which carries an "Overweight" rating and a 12-month price target of HK$50—implying nearly 80% upside from current levels. That target is based on 15 times projected 2028 EV/EBITDA.
JPMorgan views PHANCY as a rare investment opportunity within the AI sector, citing its dual exposure to the rapid growth in AI computing power and token consumption, alongside the structural demand for optimization created by China's increasingly diversified computing environment. The bank highlights that PHANCY's AI Platform business provides a stable growth foundation, with the value of its AI infrastructure products—such as vGPU and ModelHub—positioned to gain further recognition.
Despite a tight supply environment for computing power, the AI Platform segment still delivered 30% revenue growth in the first half of 2026. Leveraging its independent third-party positioning, PHANCY offers cross-chip and cross-model adaptation, scheduling, and optimization capabilities, establishing a differentiated edge across both AI infrastructure optimization and enterprise AI deployment. JPMorgan holds a positive view on the company's future growth and margin expansion, with its 2028 net profit forecast sitting 37% above the consensus estimate.
The API business, according to JPMorgan, is poised to become PHANCY's second growth engine. In the first half of 2026, API revenue reached RMB 464 million, surging 861% year-over-year. The bank believes the API segment serves as the critical bridge converting heterogeneous computing resources, model adaptation, and inference services into scalable token-based revenue. It projects this division to be the fastest-growing business line between 2026 and 2028.
As high-performance open-source models continue to proliferate, the complexity of enterprise deployment and maintenance rises in tandem, further unlocking the value of PHANCY's independent third-party platform. JPMorgan anticipates that with improving computing utilization and inference service efficiency, the gross margin of the API business could gradually approach 30%, enabling the company to achieve both rapid revenue growth and profitability improvement—bringing its earnings inflection point into sharper focus.