Macquarie: Initiates coverage on XUNCE (03317) with a "Outperform" rating and a target price of HKD 149.

Macquarie has released a research report, initiating coverage of XUNCE (03317) with an "Outperform" rating. It predicts a price-to-sales ratio of 10 times for next year, which corresponds to an expected price-to-earnings ratio of 32 times by 2029, setting a target price of HKD 149. The bank forecasts that XUNCE's revenue will have a compound annual growth rate of 61% from 2026 to 2028, and it expects the company to achieve break-even in 2026. The companys revenue is projected to grow 103% year-on-year to RMB 1.285 billion in 2025, with a further year-on-year increase of 389% in the first half of 2026, reflecting strong demand for AI deployment. The report noted that the company will record adjusted profits for the first time in the second half of 2025 and maintain profitability in the first half of 2026. The bank also anticipates a compound annual growth rate of 225% in earnings per share from 2026 to 2028.