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<Research> Deutsche Bank Raises XUNCE (03317.HK) TP to HKD351, Maintains Buy
Recommend 7 Positive 9 Negative 1 |
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Deutsche Bank issued a research report stating that, to reflect positive business momentum driven by rising demand and changes in pricing models, it raised its revenue forecasts for XUNCE (03317.HK) for this year and next year to 4% and 16%, respectively, and increased its adjusted net profit forecasts by 8% and 17%. It also lifted its forecast for free cash flow CAGR and raised the terminal growth rate from 2% to 3%. The TP was significantly increased from HKD85 to HKD351, with the Buy rating maintained. Investors are eager to capture the significant growth opportunities arising from token consumption. However, such opportunities remain scarce in the Hong Kong market. Apart from XUNCE (03317.HK), currently only KNOWLEDGE ATLAS (02513.HK) and MINIMAX-W (00100.HK) are available as LLM platform options. The bank noted that while short-term profit-taking in XUNCE may lead to volatility, long-term upside potential remains as long as the company can demonstrate business replicability. The bank also raised the companys revenue CAGR for 2025 to 2028 from 57% to 76%. In terms of profitability, benefiting from stronger economies of scale and operating leverage, the companys adjusted net profit margin for 2026, 2027 and 2028 is forecast to increase to 6.9%, 18.6% and 24.4%, respectively (previously 6.7%, 18.3% and 19.5%). (hc/u) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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