GTHT Securities has reaffirmed its bullish stance on DEEPEXI TECH (01384), issuing a fresh research note that maintains an "Accumulate" rating while keeping the target price steady at HK$61.10. This latest assessment comes as the company's enterprise AI business continues to demonstrate robust growth momentum, with the core DeepexiOS product emerging as the primary revenue driver. Management has also pointed to a clear inflection point in profitability, noting that the second quarter achieved single-quarter profitability for the first time.
The company's financial performance underscores a strong upward trajectory. For the first half of fiscal 2026, DEEPEXI TECH reported revenue of RMB 284 million, marking a 115.0% year-on-year increase. Gross profit surged 120.5% to RMB 160 million, outpacing revenue growth and lifting the gross margin to 56.5%, a 1.5 percentage point improvement from the prior year. Losses narrowed dramatically during the period, with net losses shrinking 89.6% year-on-year and adjusted net losses down 48.5%, reflecting substantial gains in operational efficiency.
Particularly notable was the second-quarter performance, where revenue expanded 326.6% sequentially, enabling the company to achieve quarterly profitability amidst rapid scaling. For an enterprise AI firm still in high-growth mode, reaching profitability while expanding revenue signals that earlier investments in product development, research, and delivery infrastructure are beginning to yield tangible results, with economies of scale gradually taking effect.
The primary catalyst behind this impressive growth is DeepexiOS, the company's AI enterprise operating system platform. In the first half of fiscal 2026, DeepexiOS generated RMB 226 million in revenue, a 209.2% year-on-year surge that exceeds overall revenue growth. Its revenue contribution jumped from 55.3% to 79.6%, cementing its status as DEEPEXI TECH's dominant income source. Additionally, DeepexiOS's gross margin improved to 57.2%, up 2 percentage points year-on-year, demonstrating that profitability quality is improving even as revenue expands at a rapid clip.
Strategically, the company has consolidated its product lineup by upgrading FastAGI into DeepexiOS, creating a comprehensive enterprise AI suite that includes the DeepWorks intelligent agent platform, the Deepexi enterprise large model, and Deepology, which encompasses enterprise ontology datasets and skills. Deepology now spans multiple industries, including manufacturing, retail, scientific research, and public utilities, with over 2,000 enterprise-level Skills accumulated. This positions the company to extend its AI capabilities beyond knowledge-based queries into deeper business scenarios such as production operations, decision-making, IT services, and data governance.
Looking ahead, GTHT forecasts DEEPEXI TECH's revenue to reach RMB 912 million, RMB 1.519 billion, and RMB 2.336 billion for fiscal years 2026 through 2028, respectively. The brokerage applies a 20 times price-to-sales multiple for fiscal 2026, corresponding to a target market capitalization of RMB 18.233 billion, or approximately HK$ 21.324 billion. GTHT believes that against the backdrop of rapidly accelerating enterprise AI demand, DEEPEXI TECH has demonstrated clear signs of accelerated growth: revenue has doubled in the first half, while single-quarter profitability has been achieved. As enterprise AI applications continue to penetrate real-world business processes, the company's scale and profitability are poised to enter a phase of rapid simultaneous expansion.
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