The 720: China AI Models, Initiations (Iluvatar, GO, India Auto Parts), Asia Banks, Japan Games & Internet, Taiwan CCL, Xiaomi, Montage

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The 720: China AI Models, Initiations (Iluvatar, GO, India Auto Parts), Asia Banks, Japan Games & Internet, Taiwan CCL, Xiaomi, Montage

Equity Research

20 July 2026 | 7:32AM HKT

The 720: China AI Models, Initiations (Iluvatar, GO, India Auto Parts),

Asia Banks, Japan Games & Internet, Taiwan CCL, Xiaomi, Montage

In Focus | China AI Models Michael Snaith

+852-2978-0455 |

michael.snaith@gs.com

China AI Models – New Frontier from Kimi K3. The release of the 2.8-trillion Goldman Sachs (Asia) L.L.C.

parameter Kimi K3 model sets a new frontier in global coding capabilities and Caleb Chan

+852-2978-0790 | caleb.chan@gs.com

establishes a new high for Chinese model pricing at US$2.3 per million tokens. We Goldman Sachs (Asia) L.L.C.

expect competition to intensify in the high-end coding segment with further

large-parameter model launches in the second half of 2026, while lower-end API

pricing remains suppressed as cash-rich players subsidize costs. Conversely, we see

healthy pricing and gross margins in video generation with key players to enjoy

healthy growth over 2H26 amid new functionality breakthroughs and tight

computing resources where demand significantly outpaces capacity. We highlight

Alibaba, GDS, VNET, and Kingsoft Cloud as preferred cloud plays on rising

hyperscaler capex, alongside MiniMax for its upside-skewed risk-reward. Ronald

Keung

Listen Up - GS Webcasts on the Agenda

China in Motion: Macro & Strategy | 10am HK | Global Macro, July Politburo, Market

Views | Access Webinar | with Lisheng Wang, Yuting Yang, Kinger Lau, Si Fu & Kevin

Wang (in Mandarin)

New | Initiations – Iluvatar, GO, India Auto Parts

Iluvatar – China AI Capex Upcycle to Drive Growth – Initiate at Buy. We initiate

coverage on Iluvatar with a Buy rating and a 12m TP of HK$1,000, as we expect the