Deutsche Bank: Xunce Valuation Undergoes Structural Reassessment, Maintains 'Buy' Rating with Target Price of HKD 351

On April 28, Deutsche Bank published a research report maintaining a ‘Buy’ rating for Xunce, with a 12-month target price based on discounted cash flow (DCF) valuation set at HKD 351, indicating an upside of approximately 15% from the closing price of HKD 305 on April 27. The report noted that Xunce’s valuation was significantly reassessed last month, driven by two main factors: 1) the rapid development of AI agents has led to a surge in market demand for high-quality data; 2) the company’s transition to a ‘token economy’ model directly links growth to strong token consumption. Xunce’s unique advantage lies in its expertise in specific domains, providing enterprises with high-precision, decision-supporting tokens, positioning it as a key player in the development of vertical enterprise AI. The bank believes that the previous increase reflects its capabilities and potential, and the next phase of reassessment will depend on execution, particularly the expansion of its core capabilities into broader verticals such as advanced manufacturing, robotics, and commercial aerospace. To reflect the positive business momentum driven by increased demand and price transformation, the bank has raised its revenue forecasts for the fiscal years 2026/2027 by 4%/16% respectively, and adjusted net profit forecasts upwards by 8%/17% respectively, while the compound annual growth rate of free cash flow and terminal growth rate forecasts have been increased from 2% to 3%. (Dongxin News Agency)