Deutsche Bank: Reassessment of the value driven by AI data demand and Token economy raises the target price of XUNCE (03317) to 351 Hong Kong dollars.

Deutsche Bank has released a research report, maintaining a "buy" rating on XUNCE (03317) and significantly raising the target price from 85 Hong Kong dollars to 351 Hong Kong dollars. The bank stated that with the rapid development of Agentic AI and the transformation towards a "Token economy" model, XUNCE is experiencing a structural revaluation opportunity. The report stated that XUNCE experienced a significant revaluation last month, driven by two main drivers: the rapid development of Agentic AI, leading to a surge in demand for the company's high-quality data; and the company's transformation towards a Token economy model, linking its growth directly to strong Token consumption. However, unlike general large models that provide basic Tokens, XUNCE relies on its vertical domain data capabilities to create high-precision Tokens that can be used for decision-making for enterprises. This vertical Token as a Service (TaaS) model allows XUNCE to capture scarcity premiums and expand non-linearly with customer workflows. At the same time, the rise of Agentic AI has led to exponential growth in Token consumption. XUNCE plays a dual role in the ecosystem as a "data fuel supplier" and "billing center". Its value lies in compliance protection, real-time data supply, and Token metering and settlement capabilities. Currently, XUNCE is transitioning from a traditional subscription model to a Token-based monetization model, with Token-related revenue accounting for about 5%. The company aims to increase this to 20%-30% by the end of 2026. Meanwhile, XUNCE continues to expand into various vertical industries, covering finance, telecommunications, energy, advanced manufacturing, Siasun Robot & Automation, commercial aerospace, and 10 other industries, with ample room for future expansion. Therefore, Deutsche Bank has raised its performance forecasts for XUNCE, expecting the compound annual revenue growth rate for the fiscal years 2025 to 2028 to increase from the previous forecast of 57% to 76%. They have also raised their adjusted net profit and free cash flow growth expectations. Deutsche Bank stated that this reflects the growth in AI data demand and the expected increase in ARPU (average revenue per user) from the transition to a Token economy. In terms of valuation, Deutsche Bank uses a DCF and PSG cross-validation method: the company's target price corresponds to a PSG of 0.6 times, lower than the average level of Token economy peers such as KNOWLEDGE ATLAS (02513, 0.9 times) and MiniMax (00100, 0.8 times), indicating that the valuation is still attractive.