China's version of Palantir, DEEPZERO (02723): Revenue and profits both increased in the first half of the year, with market capitalization exceeding tenfold.

On August 26, DEEPZERO (02723) released its financial report for the first half of 2026, achieving revenue of 398 million yuan, an increase of 43.6% year-over-year; during this period, the gross profit was 98 million yuan, a year-over-year increase of 30.3%, and the adjusted net profit was 17 million yuan, an increase of 30.6% year-over-year. The gross margin and adjusted net profit margin were 24.62% and 4.27%, respectively. DEEPZERO focuses on the AI agent track for enterprise decision-making and was the first to propose the core value proposition of AI-driven growth, with a fully intelligent product system that has formed a dual-wheel drive of agent products and agent marketing services. In the first half of the year, revenue from agent products was 28 million yuan, an increase of 52.9% year-over-year, while revenue from agent marketing services was 370 million yuan, an increase of 42.9% year-over-year, with the two major business revenue shares being 7% and 93% respectively. There have been significant changes in the two major businesses, with the Agentic product system gradually penetrating benchmark customers on a larger scale, improving product delivery efficiency and client value simultaneously. During this period, the number of new signed orders for agent products and services grew by over 300% compared to the same period last year. The growth of the two agent businesses can be attributed to DEEPZERO's continued investment in R&D. In the first half of the year, the company launched DeepAgent 4.0 Pro, which covers multiple core scenarios of enterprise operations, accelerating the full AI transformation of products and services and creating an insurmountable technological barrier in the AI agent field. The formation of this technological barrier did not happen overnight. Firstly, the company has undergone 17 years of technological accumulation, possessing profound industry knowledge and expertise; secondly, it has accumulated a vast amount of high-value and authentic unique industry and enterprise data as well as a large pool of high-quality top-tier clients, resulting in rich scenario resources; thirdly, leveraging the accumulated data and customer relationships, agent products can continue to iterate, provide feedback, and optimize in long-term, real commercial scenarios, thus forming a closed loop of entering the complex decision-making scenarios of top-tier clientsobtaining data and feedbackpromoting model and product iterationforming cross-scenario reuse capabilitiesenhancing product penetration and client valueaccessing more clients and scenarios. The company continuously solidifies its competitive moat through multi-dimensional initiatives. Firstly, it enriches AI agents to build product shields. DeepAgent 4.0 Pro serves as a unified technology and product platform, comprehensively upgrading and integrating AlphaDesk, AlphaData, and other AI products and services into intelligent agents. The reusability of technology allows the two major businesses to share the capabilities of DeepAgent 4.0 Pro in terms of technology, data, and product capabilities; the company has developed over 20 new agents, covering AI product innovation scenarios and AI sales channel scenarios, continuously enriching the enterprise decision-making AI agent matrix. Secondly, by focusing on lighthouse clients, the penetration rate of AI agents among clients has accelerated, boosting conversion and seizing new opportunities. The companys agent order clients include benchmark customers from various industries such as fast-moving consumer goods, automotive, and pharmaceuticals, including Procter & Gamble, Li Auto, and INNOVENT BIO. Most of the new agent contracts come from Fortune 500 companies and industry leaders, with approximately 30% of the new clients purchasing multiple agents, among which, several companies deployed over a dozen agent products in one go. Additionally, the globalization strategy is accelerating, establishing a first-mover advantage in overseas markets. The overseas market is a key area in the companys strategic landscape, continuously developing and perfecting Agent products tailored to overseas business scenarios, thereby accelerating the overseas deployment of agent capabilities. In the first half of the year, revenue from overseas markets was 95 million yuan, a year-over-year increase of 38.1%, accounting for 23.87% of total revenue, making the overseas market a second growth point. Through these strategic measures, the company not only solidifies its competitive advantage but also achieves significant results. Notably, the company is advancing a Double Hundred growth strategy, promoting growth simultaneously from the dimensions of client scale expansion and single-client product penetration, while accelerating the Double Hundred strategic growth wheel through strategic mergers and acquisitions, forming a dual drive of both organic growth and external acquisitions for sustained high growth of the dual business. At the earnings briefing, CEO Huang Xiaonan positioned the company as the "Palantir of sales and marketing," noting that both share a high degree of commonality in embedding data and algorithms into cross-scenario business processes around complex decision-making scenarios of large enterprises, outputting decision systems and taking responsibility for outcomes. In fact, the competitive advantages are indeed similar: both are dedicated to building decision AI capabilities across multiple scenarios, summarizing a universal semantic layer to form reusable business ontologies and semantic networks; both deliver decision systems rather than point tools, allowing for the accumulation of hard-to-replicate decision-making process data and experiential assets; both target top-tier enterprises with highly complex decision scenarios and high-density data assets as their clients, thereby ensuring revenue stickiness while capturing the necessary environment for decision AI training. Globally, enterprise-level AI decision-making applications have become a consensus path for realizing the value of AI technologies. Industry giants such as Anthropic and OpenAI have both shifted toward related fields. As a leader in the decision AI industry, Palantir has recorded significant growth in both performance and market value, maintaining a mid-to-high double-digit revenue growth rate. Its market value has been on an upward trajectory since 2023, benefiting from the explosive growth in the AI application field, with its market value increased by 26.6 times to date. DEEPZERO listed on the Hong Kong stock market on May 27 of this year, and within just three months, its market value has skyrocketed over 10 times from its issuance price, demonstrating strong market and investor confidence in the companys future. Currently, DEEPZEROs market value is 59.7 billion HKD, while Palantirs market value is as high as 426.5 billion USD, a disparity of over 55 times. Considering dynamic growth, DEEPZERO has significant room for valuation growth inspired by Palantir. In summary, under the AI-driven growth strategy, DEEPZERO is propelled by the dual wheels of agent products and agent marketing services, achieving simultaneous revenue and profit growth. The company has built core technological barriers and continuously solidifies its moat through multi-dimensional initiatives, effectively advancing the Double Hundred growth strategy. Additionally, with product structure optimization and comprehensive AI empowerment, the companys profitability has significantly improved, and referencing Palantirs growth path, the company is poised for a revaluation opportunity.