Key Takeaways:
Cathay Haitong maintained its “Overweight” rating on data solutions provider Xunce (03317), setting a new price target of 242.36 Hong Kong dollars, citing explosive growth and a promising new business model.
“The results validate our AI strategy,” the research firm said in a note released April 2, highlighting the company’s exploration of a tokenized payment model as a key catalyst for a potential business upgrade and expanded revenue streams.
The bullish assessment follows a strong 2025 financial report, where Xunce’s revenue grew 103 percent year-over-year to 1.285 billion yuan. The company achieved its first-ever semi-annual profit in the second half of 2025, posting an adjusted net profit of 50 million yuan. Revenue from diversified industries was a core driver, jumping 164 percent to 1.02 billion yuan and now accounting for 80 percent of the company's total revenue.
| Metric | Previous | New |
|---|---|---|
| Rating | Overweight | Overweight (Maintained) |
| Price Target | Not Provided | 242.36 HKD |
| Firm | Cathay Haitong | Cathay Haitong |
Cathay Haitong’s target implies a 78.2 billion HKD market capitalization, based on a valuation of 33 times the firm's 2026 price-to-sales forecast. The bank projects Xunce’s revenue will reach 2.18 billion yuan in 2026 and grow to 4.71 billion by 2028, fueled by the increasing need for enterprise-grade AI data governance as large language models are adopted more widely.
The company’s growth has also been powered by expanding into new sectors beyond its traditional asset management client base, including robotics and commercial aerospace. This expansion, combined with deeper integration with core clients, helped drive the average revenue per user (ARPU) up 106 percent to 5.59 million yuan in 2025.
The shift toward a token-based payment system for its AI Data Agent services is a significant development, signaling a move to a consumption-based revenue model. Investors will be closely watching for further announcements on the implementation of this tokenized system through the remainder of 2026.
This article is for informational purposes only and does not constitute investment advice.
