Since the implementation of new pricing rules for IPOs on August 4, the Hong Kong stock market has experienced a remarkable rebound. The enthusiasm for subscriptions has soared, with oversubscription of new stocks becoming common, and their first-day performances are impressive. Between August 4 and October 22, 24 companies went public, with 22 seeing their stock prices rise on their first day, leading to an impressive success rate of nearly 92%. Notably, ten of these companies enjoyed first-day gains exceeding 100%, accounting for a substantial 41.66%. Amidst this lively IPO market, Deepexi Tech (01384) has set a record, taking the Hong Kong stock market by storm. According to sources, the market demand for Deepexi Tech's shares was extraordinarily high, with a total of 239,000 participants involved in the subscription, resulting in a staggering oversubscription rate of 7590 times, amounting to HKD 272.1 billion. This achievement places Deepexi Tech at the top of the Hong Kong Stock Exchange's history for oversubscription.
The heated interest from investors in Deepexi Tech is attributed to its strong fundamentals and its potential to replicate the core elements of Palantir Technologies Inc. (PLTR), which currently has a market valuation exceeding RMB 3 trillion. Such a comparison signals that Deepexi Tech is on a promising path, and its future seems bright and full of possibilities.
Deepexi Tech’s rapid growth has been driven by a dual focus on "Data + AI," enhancing performance and profitability quality. Founded in 2018 by seasoned tech veteran Zhao Jiehui and his former Huawei colleague Yang Lei, Deepexi Tech capitalizes on their extensive technical expertise and large enterprises' practical experience. Just one year post-establishment, the company launched the FastData enterprise-grade data intelligence solution, which aims to transform complex data into intuitive business insights and support companies in improving their real-time data analysis capabilities and fostering agile decision-making.
Recognizing the shift towards artificial intelligence in 2021, Deepexi Tech began focusing on deep integration between data governance and AI. It rolled out the FastData Foil data fusion platform, which consolidates functionalities such as real-time and offline data processing and unified governance. This platform covers the entire chain from data storage and analysis to value realization, continually empowering enterprises in their data-driven transformation. More recently, amidst the generative AI wave sweeping the globe, the company introduced the FastAGI enterprise AI solution, further establishing its "Data + AI" dual-driven business model.
The Deepexi platform integrates vertical industry knowledge and offers tailored, high-precision enterprise models using techniques like supervised fine-tuning (SFT) and reinforcement learning. Moreover, the FastAGI solution streamlines the complexity associated with AI deployment, empowering enterprises to optimize decision-making and enhance operational efficiency.
Based on the advanced capabilities of the FastData Foil and Deepexi platforms, Deepexi Tech is positioned to deliver comprehensive services, ranging from multi-modal data governance to intelligent decision-making, facilitating substantial smart transformations for enterprises. According to its prospectus, the company has profoundly empowered industrial smart upgrades across various verticals, including consumer retail, manufacturing, healthcare, and transportation.
As of June 30, 2025, Deepexi Tech has served a total of 283 corporate clients across its sectors, with 94 repeat customers constituting 33.2% of its clientele. This reflects high customer stickiness and satisfaction. The solid progress the company has made has translated into robust growth momentum, with income rising from HKD 100 million in 2022 to HKD 243 million in 2024, demonstrating a remarkable growth rate of 55.5%. In the first half of 2025, revenue surged by 118.4% year-on-year to HKD 132 million, reflecting the company's strong development potential.
Deep analysis reveals that the FastAGI enterprise AI solution is the key element driving Deepexi Tech’s accelerated growth. Launched in 2023, this solution swiftly established itself as a second growth curve for the company, with revenues skyrocketing from approximately HKD 6.55 million in 2023 to around HKD 90.4 million in 2024. By the first half of 2025, revenues reached HKD 73.07 million, representing a staggering 191% year-on-year growth and contributing 55.3% of total revenue. This growth indicates that the company has entered a new phase focused on "Data + AI" dual-driven, synergistic development.
Simultaneously, Deepexi Tech's profitability quality has markedly improved. Data shows its gross margins increasing from 29.4% in 2022 to 55% in the first half of 2025, fueled by business and technical maturity, leading to significant economies of scale and reflecting robust competitive strength and pricing power in the market.
Given the accelerated growth in revenue and profitability, the strong interest from the market for Deepexi Tech's IPO comes as no surprise. Notably, the investor enthusiasm for Deepexi Tech has roots dating back to its establishment, having completed about nine financing rounds, raising approximately RMB 2 billion. Notable investors include Hillhouse Capital, IDG Capital, Shanghai AI Investment Fund, Industrial Securities Asset Management, and China Merchants Jinling International, who have provided substantial support for Deepexi Tech's development.
Deepexi Tech’s strong growth trajectory holds significant similarities with Palantir across several critical dimensions, such as core business models, technical architectures, commercialization paths, financial performance, and growth momentum. The commonality hints at a bright future for Deepexi Tech. Palantir’s success is largely due to its “Data + AI” model that realizes multi-modal data governance through its Foundry platform while empowering business innovations via its AIP platform, forming a complete "AI operating system." Deepexi Tech has followed a similar technical trajectory with its proprietary FastData Foil, capable of processing complex enterprise data, and its Deepexi platform, which integrates deep industry knowledge with AI solutions.
Both companies have captured the advantage of leveraging "lighthouse customer radiation" for commercialization. Palantir generates solutions for large institutional and government clients, then replicates this success across sectors, truly capturing industry-leading customer resources and minimizing acquisition costs.
Comparative analysis shows both companies have leveraged AI solutions to maintain robust growth. Palantir’s revenue grew at a compounded annual growth rate of 30.38% from 2020 to 2024, while Deepexi Tech’s revenue saw a CAGR of 55.5% during the same period, further doubling in the first half of 2025.
Currently, it is widely believed that Deepexi Tech's growth rate post-IPO, which numerically surpasses Palantir's, is likely to continue. Deepexi Tech faces distinct challenges within the domestic market regarding data quality and model adaptability while also appealing strongly to companies requiring tailored models and solutions that respect data confidentiality and offer high performance at competitive prices. The Chinese government has also set concrete goals for AI application penetration, projecting a target of over 70% by 2027.
According to Frost & Sullivan, the market scale for enterprise-grade large model AI applications in China is projected to grow from RMB 5.8 billion in 2024 to RMB 52.7 billion in 2029, at a staggering CAGR of 55.5%. In this rapidly growing blue ocean market, Deepexi Tech stands out as the fifth largest player in enterprise-level large model AI application solutions in China, holding a significant first-mover advantage. This advantage is not only reflected in market share but also stems from deep insights into local enterprises’ needs and a comprehensive technical capability.
In conclusion, Deepexi Tech’s record oversubscription of 7590 times raises a crucial question: How to properly price such a high-growth AI company? Palantir's performance in capital markets provides pertinent reference. As of October 24, Palantir’s market capitalization reached USD 438 billion, correlating to a remarkable PS ratio of about 105 for 2025. This implies that once an AI application company validates its business model and growth trajectory, the capital market is willing to assign it a valuation premium considerably higher than that of traditional software firms.
In contrast, Deepexi Tech's market capitalization is approximately HKD 8.7 billion, with an anticipated strong revenue increase of 118.4% in the first half of 2025 leading to expectations for a doubling of annual revenue. Accordingly, Deepexi Tech’s current market cap corresponds to a PS ratio of only 17.9 for 2025. Thus, using Palantir's valuation as a benchmark, Deepexi Tech seems to be significantly undervalued, which is a critical reason behind the fervent market interest in its offerings. Given Deepexi Tech is among the few domestic providers seamlessly covering the entire process of "data governance-model training-business application," enjoying a high valuation premium seems grounded in reality. With the accelerated release of its upcoming financial results, Deepexi Tech may soon experience a valuation reassessment, possibly replicating Palantir's remarkable market journey.