Xunce - H (3317.HK): Enterprise AI deployment creates a new growth pool; initiate at Overweight

We initiate coverage of Xunce Technology at Overweight with a HK$160 Dec-27 price target, based on 20x 2028E P/E. Our investment case rests on Xunce's position in the enterprise AI implementation layer: as models become cheaper and more capable, enterprise adoption increasingly depends on connecting proprietary data, real-time business context and production systems to AI reliably. Xunce has built these capabilities through a decade of real-time data deployment and is now extending them from project delivery into reusable modules and usage-based Token monetization. This creates a path for growth to come increasingly from deeper consumption within deployed customers, while product reuse can improve delivery economics as the business scales. 1H26 provides early evidence of this transition, with rapid cross-industry growth, meaningful Token revenue and positive adjusted profit. We forecast 2026-28E revenue and adjusted net profit at 50% and 228% above consensus, respectively. The shares a