Haitong International has initiated coverage on HAIZHI TECH GP (02706) with an "Outperform" rating and a target price of HKD 90.70. This represents significant potential upside compared to its closing price of HKD 47.50 on April 29. The report defines the company as "China's first AI Harness stock," indicating its evolution from a traditional data intelligence infrastructure provider to a new phase of industrial-scale AI Agent deployment and profit realization.
The core of this valuation logic is not simply categorizing the company as an "AI application" or "enterprise software" firm. Instead, it reflects the market's growing recognition of a new paradigm for enterprise-grade AI infrastructure: AI Harness. The concept of AI Harness emphasizes not just a single large language model, an individual agent, or an isolated data governance tool. It focuses on connecting enterprise data, knowledge graphs, context, industry processes, and Agent execution capabilities, enabling AI to participate in analysis, decision-making, and execution based on trustworthy data and explainable logic.
Within this framework, HAIZHI TECH GP's model is closer to the enterprise AI operating system paradigm represented by Palantir. Its core value lies not in providing data analysis tools or simply packaging large models, but in using knowledge graphs, graph databases, industry knowledge bases, and Agent execution frameworks to map enterprise assets, business processes, and decision logic into a computable, executable, and governable system, thereby integrating AI into real-world task scenarios.
Haitong International summarizes the company's business model as a two-tier Harness architecture. The foundation layer utilizes the Atlas Graph Solution to build a "Context as a Service" capability, covering data governance, knowledge graphs, and graph databases to provide high-quality context for Agents. The application layer extends upwards with Atlas Agents, integrating Standard Operating Procedures (SOPs) into an execution framework to achieve data retrieval, analytical reasoning, and task execution, forming a complete closed loop.
The focus of enterprise AI competition is shifting towards context, governance, and workflow. Globally, the competitive landscape for enterprise AI is changing. Early markets prioritized model parameters, computing power investment, and general capabilities. However, post-2026, more enterprises are realizing that the key to integrating AI into production systems lies not in the model itself, but in data quality, contextual structure, identity permissions, governance mechanisms, and measurable business outcomes.
This trend aligns closely with HAIZHI TECH GP's product roadmap. The Atlas Graph Solution serves a "framework-first, rules-predefined" role: it first organizes internal corporate entities, relationships, rules, processes, permissions, and industry knowledge into a computable, traceable, and callable structure, then provides stable context for Agent reasoning, decision-making, and execution. In other words, the value of the knowledge graph in HAIZHI's system is not merely "cleaning up data," but helping enterprises establish a foundational order upon which AI can operate reliably.
According to the Haitong International report, revenue from the Atlas Graph business was RMB 313 million, RMB 367 million, and RMB 416 million in 2022, 2023, and 2024 respectively. It is forecast to grow further to RMB 475 million, RMB 588 million, and RMB 709 million from 2025 to 2027, forming a stable growth base for the company. More importantly, this foundation is evolving from traditional data intelligence infrastructure into the context and rules infrastructure for an enterprise-grade AI Harness.
The concept of "Harness" is gaining traction as enterprise AI moves towards operating system-like functionality. Recently, an increasing number of enterprise AI companies are aligning their strategies with concepts like Harness, Agentic Workflow, Context Layer, and AI Operating System. While the terminology varies, the underlying direction is consistent: enterprises are no longer satisfied with merely accessing large models; they aim to build an AI central nervous system that can connect knowledge, data, processes, permissions, tools, and execution actions.
HAIZHI TECH GP is particularly well-positioned as an enterprise AI operating system play in the mold of Palantir. The company's long-standing expertise in graph technology, graph databases, and industry know-how forms the foundation of its AI Harness capability. The Atlas Agent further extends this into the application layer, connecting industry SOPs, knowledge graphs, and Agent execution capabilities to form business closed loops.
Haitong International's report indicates that the Atlas Agent business began generating revenue of RMB 9 million in 2023, which surged to RMB 87 million in 2024, a year-on-year increase of 872.2%. Revenue is projected to reach RMB 146 million, RMB 264 million, and RMB 473 million from 2025 to 2027, with growth rates of 68.4%, 81.4%, and 79.0% respectively. Concurrently, the number of Agent customers is expected to increase from 19 in 2024 to 164 by 2027, signaling a transition from pilot validation to scaled replication.
Crucially, the gross margin for the Atlas Agent business improved from 17.8% in 2023 to 45.7% in 2024, and is forecast to stabilize between 53% and 55% from 2025 to 2027, becoming a significant driver for improving the company's overall gross margin. This demonstrates that HAIZHI's Agent business has progressed beyond proof-of-concept into a phase of substantial revenue generation.
HAIZHI TECH GP's uniqueness lies in combining the underlying stability provided by its graph business with the revenue growth potential from its Agent applications. It can provide the context, rules, and knowledge framework required for enterprise AI operations, while also penetrating specific business processes through its Agents to capture the incremental value from the scaled deployment of Agent applications.
Haitong International positions the company as the "Chinese version of Palantir," not merely as a comparison of market capitalization or scale, but in terms of capability structure. The core value lies in integrating data, ontology, workflows, and AI decision-making systems into an operational layer for complex organizations. HAIZHI's value is built on its graph databases and industry knowledge bases, embedding Atlas Agents into high-reliability scenarios such as government affairs, finance, risk control, and manufacturing to form an explainable, traceable, and reusable industrial-grade AI Harness.
The company's advantage is that it is overcoming two common challenges in AI investment: many Agent companies lack genuine commercial scale, with revenue stuck at the pilot stage, while many data platform companies lack application flexibility and are still valued as traditional software or project-based firms. HAIZHI is bridging this gap, with its graph business providing a stable base and its Agent business offering new growth elasticity, alongside an emerging profitability inflection point.
Haitong International forecasts company revenue will grow from RMB 503 million in 2024 to RMB 1.182 billion in 2027, with year-on-year growth rates of 23.4%, 37.2%, and 38.7% from 2025 to 2027. The comprehensive gross margin is expected to improve from 36.3% in 2024 to 45.9% by 2027. Adjusted net profit turned positive for the first time in 2024 and is projected to reach RMB 30 million and RMB 55 million in 2026 and 2027, respectively.
Consequently, Haitong International employs a Price-to-Sales (PS) valuation rather than a P/E ratio, better reflecting the company's current growth stage and long-term value. The assigned target price of HKD 90.70 is based on a 19x multiple of the forecasted 2027 sales, which still represents a discount to the average 2027 PS multiple of approximately 28x for comparable companies, indicating a degree of conservatism.
A potential near-term catalyst noted by Haitong International is the company's expected inclusion in the Hong Kong Stock Connect program in June. If realized, this would broaden access for mainland Chinese investors, increase southbound capital coverage, potentially bringing in incremental funds, and further opening up possibilities for a valuation re-rating.
In conclusion, AI investment is shifting focus from "who has the model" to "who can successfully integrate AI into enterprise workflows." In this transition, the importance of context, knowledge graphs, governance systems, business workflows, and execution capabilities is rapidly increasing. HAIZHI TECH GP's unique position stems from its long-term dedication to knowledge graphs, graph databases, and industrial data intelligence, rather than a recent pivot following Agent hype. The natural extension from an enterprise knowledge skeleton to a business execution system via the Atlas Agent is the core reason behind Haitong International's "Outperform" rating and HKD 90.70 target price, marking a starting point for the company's revaluation.
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