Daiwa has released a research report stating it has lifted its target price for BIREN TECH (06082) from HK$100 to HK$130, while reaffirming a "Buy" rating. This new valuation corresponds to an estimated price-to-sales ratio of roughly 15 times for the 2027 fiscal year.
The company's management recently revised its 2027 revenue guidance upward from RMB 10 billion to RMB 20 billion. Daiwa believes this adjustment is driven by recent average selling price increases for mainstream AI chips in the Chinese market, along with a more favorable product mix that boosts the revenue contribution from its super-pod solutions. The firm views this development as a reflection of management's confidence in the progression of its flagship BR20x chip and its ability to secure customer orders.
Daiwa has also raised its revenue projections for BIREN TECH for the 2026 to 2028 period by 14%, 94%, and 58%, respectively, bringing them to RMB 2.408 billion, RMB 21.008 billion, and RMB 45.508 billion. These adjustments factor in the stronger-than-expected first-half performance this year and the robust revenue outlook for next year. Additionally, the net profit forecasts for 2027 and 2028 have been increased by 35% and 10%, reaching RMB 4.179 billion and RMB 11.967 billion, respectively.
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