Soochow Securities International issued an inaugural coverage report on July 31, initiating coverage on multi-spectral AI perception leader HQVT (01392) with a "Buy" rating and a target price of HK$76.24. As of the July 31 close, the stock traded between HK$14.64 and HK$15.87, implying a potential upside of 380% to 421%, indicating significant growth potential.
The company listed on the Main Board of the Hong Kong Stock Exchange on June 22, 2026, at an IPO price of HK$7.20, raising net proceeds of HK$537 million. It is recognized as Hong Kong's "first physical AI stock" and a national-level specialized and new "Little Giant" enterprise. HQVT has built a full-stack closed-loop system encompassing "multi-spectral hardware, on-device AI inference, and industry-specific vertical large models." Its core business includes modules, perception terminals, and customized large model services, with a deep focus on the physical security sectors of IDC, energy storage, and smart grids.
Market landscape and competitive edge
At the industry level, the domestic multi-spectral AI market was valued at RMB 21 billion in 2025, with projections to exceed RMB 60 billion by 2028, representing a compound annual growth rate of over 40%. Based on 2025 revenue, the company holds a 3.3% overall market share, ranking first in China. In the sub-segment of multi-spectral AI large model services, its market share reaches 23%, solidifying its leadership position. Leveraging over a decade of accumulated industrial multi-spectral imaging data, the company has successfully implemented benchmark projects for over 70 leading IDC clients, achieving a hazard identification accuracy rate of 94%. This establishes a formidable data and scenario moat that is difficult to replicate.
Financial performance and business mix
Financially, the company reported revenues of RMB 117 million, RMB 523 million, and RMB 669 million for fiscal years 2023, 2024, and 2025, respectively, achieving a three-year compound growth rate of 138.9%. Adjusted net profit for 2025 was RMB 55.25 million, with profitability continuing to improve after excluding one-time listing expenses. The business structure is steadily optimizing, with large model service revenue accounting for 53.1% of total revenue in 2025, becoming the primary growth driver. The brokerage noted that the gross margin for large model services declined from 50% to 30.4% in 2025, mainly due to upfront hardware investments for new scenario expansion. However, as project repurchase rates increase, the gross margin is expected to recover to 35% in the second half of 2026 and further rebound to the 40%-45% range by 2027.
Key technology catalyst and valuation
On July 31, the company announced a significant technological catalyst: it has successfully migrated its large model to the NVIDIA Jetson edge computing platform. This move eliminates the reliance on high-performance servers, significantly reducing deployment costs for customers and opening up the standardized product market for small and medium-sized clients. This is seen as a core driver for near-term valuation recovery. According to Soochow Securities International's analysis, from a valuation perspective, the current stock price implies a 2025 adjusted P/E ratio of only 17-18 times. However, in a base-case scenario, the stock should be assigned an 83 times 2026 estimated P/E ratio, corresponding to the HK$76.24 target price. Under conservative and optimistic scenarios, the target prices are HK$56.60 and HK$94.30, respectively. Compared to the average P/S ratio of 68.35 times for comparable perception companies traded on the A-share market, the stock's scarcity on the Hong Kong exchange offers significant room for valuation re-rating.
Key catalysts and monitoring indicators
The report highlights that medium-to-long-term core catalysts include turning operating cash flow positive, securing new orders in the energy storage and smart grid sectors, and securing the first overseas SaaS order. Investors are advised to closely track three key indicators: the quarterly gross margin of the large model business, IDC project orders, and the commercialization progress of on-device AI products. The brokerage also noted that the company's deep cultivation of the IDC sector ensures strong customer stickiness, and its supply chain is continuously being optimized. With the gradual scaling of on-device AI products, the orderly expansion of its domestic and international business footprint, and the premium associated with being a scarce multi-spectral AI stock in Hong Kong, the company's long-term growth potential is outstanding. The subsequent pace of value realization can be tracked by monitoring changes in the three core operational indicators.
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