Goldman Sachs has released a research report reiterating its "Buy" rating on BIREN TECH (06082) and raising its 12-month price target from HK$80.5 to HK$92, citing optimism over the company's next-generation GPU product ramp-up, supply management capabilities, and customer expansion.
The bank noted that the company is currently conducting internal testing of the BR200, with the goal of entering customer validation once completed. Backed by proactive inventory management — with inventory reaching RMB 1.2 billion by the end of the first half of 2026, compared to RMB 949 million at the end of the first half of 2025 — and secured capacity commitments, commercialization is expected to accelerate, with customer coverage spanning AI model developers, telecom operators, CSPs, and enterprises.
The bank expects the company to benefit from growth in China's cloud capital expenditure, the ramp-up of next-generation AI chip shipments, and further penetration into CSP customers. It also forecasts that leading Chinese cloud platforms will see capital expenditure grow by 105%, 21%, and 14% year-on-year in 2026, 2027, and 2028, respectively.
The bank noted that the company completed a new round of share placement in October, raising HK$4 billion in net proceeds, of which 70% will be allocated to product commercialization, strategic supply chain procurement, and production preparation, while 20% will be used to enhance R&D capabilities and the software ecosystem.
The bank raised its earnings forecasts for the company for each year from 2027 to 2030 by 17%, 18%, 13%, and 9%, respectively, primarily due to higher GPU product revenue driven by higher average selling prices and sustained shipment ramp-up. It also lowered gross margin estimates for the same period to reflect changes in product mix.
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