Z.ai Shares Plummet for 11 Consecutive Days, Dropping 77% in Three Months

Z.ai (2513.HK) closed at 677.5 HKD on September 15, marking an 11-day losing streak with a cumulative decline of 43.3%. The stock has fallen below its recent placement price of 714 HKD. Following two share placements in two months, the placement price has been slashed by 55%, leaving institutional investors who entered in July with a 57% paper loss. Jefferies downgraded the valuation multiple for its cloud business from 50x to 30x ARR, maintaining a hold rating with a target price of 1,183.79 HKD. Despite strong revenue growth, the company faces high R&D costs and concerns over customer concentration and future computing power supply.