Deutsche Bank has reiterated its Buy rating on XunCe and set a 12-month target price of HK$351. Based on the company’s recent closing price of HK$305, the target implies roughly 15% upside. According to the bank’s research note, the main drivers behind the valuation re-rating are XunCe’s strategic shift toward a token economy model and its increasingly important role in enterprise AI.
Strategic shift supports valuation case
The report argues that XunCe’s evolving business model is central to the bullish view. Deutsche Bank sees the company’s move toward a token-economy framework as a meaningful change in how the market may assess its long-term growth profile. At the same time, its position in enterprise artificial intelligence is viewed as another major pillar of the investment case, adding a technology-driven growth angle beyond its existing operations.
Forecasts raised for revenue and profit
Deutsche Bank also revised its financial projections upward. The bank increased its revenue forecasts by 4% for fiscal years 2026 and 2027, while lifting its net profit forecasts by 16% for the same period. In addition, it raised both the compound annual growth rate assumption for free cash flow and the terminal growth rate from 2% to 3%. These changes indicate a more constructive outlook on XunCe’s medium- to long-term cash generation and earnings trajectory.
Focus turns to execution
Overall, Deutsche Bank’s unchanged Buy rating and higher target price assumptions suggest continued confidence in XunCe’s outlook over the next year. For investors, the key question will be whether the company can translate its token-economy transition and enterprise AI positioning into measurable business execution. If those initiatives continue to gain traction, the current re-rating thesis may receive further support.