Target price HK$60! HAITONG INT'L initiates coverage on DEEPEXI TECH (01384) with "Outperform" rating, expects growth to outpace peers, profitability inflection point approaching.

After market close on September 16, HAITONG INT'L released its first coverage report on DEEPEXI TECH (01384), assigning the company an "OUTPERFORM" rating and a target price of HK$60. HAITONG INT'L believes that as enterprise AI demand gradually moves from model testing into actual business deployment, DEEPEXI TECH, with its data capabilities, industry know-how, customer base, and delivery capabilities, is poised to become a major beneficiary of the accelerating growth in the enterprise-level AI application market. HAITONG INT'L expects the company's revenue to reach RMB 946 million, RMB 1.781 billion, and RMB 2.914 billion in 2026, 2027, and 2028, respectively, with a revenue CAGR of 91.5% from 2025 to 2028, significantly higher than the comparable companies' average of approximately 60%. Profitability is also expected to reach a clear inflection point: it is understood that the company's profitability improved markedly in 2026, having already achieved a turnaround to profit in the second quarter; HAITONG INT'L expects DEEPEXI TECH's overall gross margin to rise from 59.4% in 2026 to 64.4% in 2028, and forecasts that its full-year adjusted net profit will turn positive in 2026, reaching RMB 10.4 million, further rising to RMB 64.1 million and RMB 215 million in 2027 and 2028, corresponding to an increase in adjusted net margin from 1.1% to 7.4%. The company's most core growth driver currently comes from its AI enterprise operating system, DeepexiOS. In the first half of 2026, DEEPEXI TECH's overall revenue surged 115% year-on-year to RMB 284 million, of which DeepexiOS revenue soared 209.2% year-on-year to RMB 226 million, accounting for as much as 79.6% of revenue and becoming the company's absolute core business. Over the same period, the adjusted net loss narrowed significantly by 48.5% year-on-year to RMB 26.9 million. HAITONG INT'L further expects that for the DeepexiOS business alone, revenue will reach RMB 779 million, RMB 1.597 billion, and RMB 2.716 billion in 2026, 2027, and 2028, representing year-on-year growth of 206.2%, 105.0%, and 70.0%, with its revenue share further rising to 82.4%, 89.7%, and 93.2%. The industry level is likewise in a period of rapid expansion. According to Frost & Sullivan data, the market size of China's enterprise-level large-model AI applications is expected to grow from RMB 5.8 billion in 2024 to RMB 52.7 billion in 2029, with a CAGR of 55.5%; over the same period, the overall enterprise AI application solutions market is expected to reach RMB 239.4 billion. As of June 2026, the company's Deepology has accumulated more than 2,000 enterprise-level Skills, covering multiple business scenarios such as manufacturing, retail, scientific research, and public utilities. HAITONG INT'L believes that the company has long been deeply engaged in vertical industries such as manufacturing, accumulating substantial expertise in complex industrial data processing, enterprise system connectivity, and on-site AI deployment. Compared with general-purpose large-model vendors and large technology platforms, it is better able to penetrate specific business processes and form differentiated competitive advantages. In terms of valuation, HAITONG INT'L assigns DEEPEXI TECH a 2027 P/S of 10x, higher than the comparable companies' average of 7.1x, and based on this derives a target price of HK$60. HAITONG INT'L believes that the core support for the company's valuation premium lies in faster revenue growth, DeepexiOS's continuously increasing revenue contribution, and the improvement in delivery efficiency and profitability brought by the reuse of enterprise Skills. As enterprise AI gradually moves from "testing models" to "truly deploying and generating business value," DEEPEXI TECH's growth logic is also moving further from the AI concept into the stage of revenue expansion and profit realization.