Jefferies has issued a research report highlighting DeepSeek's release of DeepSeek-V4.1-Flash, describing it as a cost-efficient model. The firm has assigned "Buy" ratings to Alibaba-W (09988), Tencent (00700), and MINIMAX-W (00100), with target prices of HK$184, HK$750, and HK$533, respectively.

The report notes that DeepSeek-V4.1-Flash introduces several breakthroughs, featuring a total parameter count of 552 billion (with active parameters of 8 billion for input and 16 billion for output). The model adopts a new Causal Encoder-Decoder (CED) architecture, combined with a novel pre-training approach involving large-scale post-training. In third-party Agentic Benchmark evaluations, the model has outperformed Moonshot AI's Kimi-K3, Anthropic's Opus5, and OpenAI's GPT5.6 Sol.

Jefferies points out that compared to previous models, HBM and SSD requirements have been reduced to one-quarter and one-eighth, respectively. DeepSeek continues its peak and off-peak pricing strategy, with peak-hour cache hit, input, and output prices set at RMB 0.04, RMB 2, and RMB 8 per million tokens, respectively. Off-peak prices are RMB 0.02, RMB 1, and RMB 4 per million tokens. When comparing peak-hour rates, these prices are 87%, 78%, and 70% lower than DS-V4-Pro, and 98%, 90%, and 92% lower than Kimi-K3, and 98%, 75%, and 71% lower than GLM-5.3, respectively.

Analysts believe intensifying competition will drive innovation in subsequent iterations among industry peers. Additionally, following the V4.1 Flash release, the V4 Flash version has reduced peak-hour cache hit, input, and output prices by 60%, 33%, and 11%, bringing them to RMB 0.04, RMB 2, and RMB 8 per million tokens.

Where to begin: The brokerage's positive stance on these three major tech names suggests confidence in their ability to capitalize on the evolving AI landscape, particularly as cost-efficient models like DeepSeek's latest offering reshape competitive dynamics in the sector.

Why these three picks: Jefferies' target prices reflect significant upside potential for all three stocks, with the firm citing their strategic positions in the AI ecosystem and ability to leverage technological advancements for sustained growth.