Goldman Sachs has reiterated its "Buy" rating on Biren Tech (06082) and raised its 12-month price target from HK$80.5 to HK$92, citing optimism over the company's next-generation GPU product ramp, supply management capabilities, and customer expansion.
The investment bank noted that the company is conducting internal testing of its BR200 chip, and once completed, aims to enter customer validation. 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, as well as secured capacity commitments, commercialization is expected to accelerate, with customers spanning AI model developers, telecom operators, cloud service providers (CSPs), and enterprises.
Goldman Sachs expects the company to benefit from growth in China's cloud capital expenditure, a ramp in next-generation AI chip shipments, and further penetration into CSP customers. The bank 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 net proceeds of HK$4 billion, 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.
Goldman Sachs raised its earnings forecasts for the company for each year from 2027 to 2030 by 17%, 18%, 13%, and 9%, respectively, primarily driven by higher GPU product revenue on the back of higher average selling prices and continued shipment ramp-up. The bank also lowered its gross margin forecasts for the same period to reflect changes in product mix.
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