Huatai Securities: First coverage of Deshai-B (02526) with a “buy” rating target price of HK$296.13
The Zhitong Finance App learned that Huatai Securities covered Deshai-B (02526) for the first time and gave it a “buy” rating, with a target price of HK$296.13. The bank is optimistic that in the context of the accelerated release of demand for intelligent medical imaging, the company will continue to improve the development and commercialization efficiency of specialist models with cross-modal model capabilities, hospital cooperation networks, and clinical data accumulation, and expand revenue boundaries through model training, software licensing, and sequential segmentation, replicate existing capabilities to more scenarios, and promote the expansion of total revenue and recurring revenue scale for model services.
Huatai Securities's main views are as follows:
Artificial intelligence helps expand and upgrade the medical imaging testing market
According to Frost & Sullivan, China's medical imaging testing market will be around 116.3 billion yuan in 2026. Huatai Securities estimates that the large AI imaging model can reach a value pool of about 11.2 billion yuan in the medical imaging testing market. In response to the procurement needs of hospital research teams, the bank estimates the short-term and medium- to long-term market sizes of 820 million yuan and 2.6 billion yuan respectively. If technological advances drive the penetration of image AI into more scenes, or promote rapid iteration of model capabilities, the market space is expected to expand further. The imaging testing market and the broad value pool of medical research have laid the foundation for Deshi Biotech to increase penetration rate and expand revenue scale.
The doctors' co-creation mechanism built by Deshi Biotech takes into account academic achievements and clinical translational value, and is expected to form a continuously strengthened commercial flywheel. On the one hand, this model can help doctors conduct research on topics, publish papers, and enhance academic influence; on the other hand, it can promote specialist models into multi-center verification and clinical application, and share application value through intellectual property and achievement transformation mechanisms recognized by hospitals and scientific research institutions. Under a healthy and win-win partnership, the company is expected to rely on regulatory access, clinical scenario accumulation and model service capabilities to promote intelligent replacement of manual processes and achieve scale expansion through software, equipment and continuous model services.
Perfect product hierarchy helps transform platform capabilities into commercial revenue
Deshi Biotech integrates medical, computational, and engineering research and development experience to pioneer the field of medical imaging based on artificial intelligence. The company uses the iMediimage® base model with 104 b parameters as the technical base. Scenario capabilities have gradually expanded from reproductive genetics to fields such as radiology, ultrasound, and pathology, and has built a collaborative product system with intelligent equipment, reagent consumables, cloud platforms and model services at the commercial level.
As of June 2026, the company has carried out a total of 158 model projects, cooperated with 99 hospitals, covering 43 types of organs or application sites and 61 indications. AI AutoVision® has obtained three types of medical device registration certificates, further validating the company's ability to transform the pedestal model into a regulatory-grade product. In the first half of 2026, the company's model service revenue increased 101.1% year-on-year to 94.54 million yuan, accounting for 86.9% of total revenue. Platform capabilities are gradually being transformed into commercial revenue, and model services have become an important support for revenue growth. In the medium to long term, the company is expected to further expand its business boundaries through cross-disease replication and overseas registration through specialist models.
Differences from market views
Huatai Securities believes that in the medical imaging market, general models and vertical models are more likely to form a “base model+specialist application” hierarchical system, and clinical implementation still relies on specialist data, doctors' experience, and medical device registration. At the same time, the base model can reduce the marginal development cost of specialist models. With the base model, specialist data, regulatory qualifications, and hospital deployment capabilities, the company is expected to deposit clinical knowledge into a cost-effective small model that can be reused.
The bank estimates that Deshi Biotech's total revenue from 2026 to 2028 will be RMB 333 million, RMB 652 million and RMB 1,245 million, respectively, up 102.6%, 95.9% and 90.8% year-on-year respectively. The bank uses a segmented valuation method, corresponding to a neutral scenario target price of HK$296.13.