Daiwa: Raises BIREN TECH (06082) target price to HK$130, reiterates "Buy" rating.

Daiwa released a research report raising BIREN TECH's (06082) target price from HK$100 to HK$130, reiterating a "Buy" rating, corresponding to approximately 15x the 2027 forecast price-to-sales ratio. Company management recently raised its 2027 revenue guidance from RMB 10 billion to RMB 20 billion. The bank believes this is due to recent average selling price increases for mainstream AI chips in the Chinese market, as well as changes in product mix that increased the revenue contribution from super-pod solutions, reflecting the company's confidence in the subsequent development of its flagship chip BR20x and customer order acquisition. Daiwa raised BIREN TECH's revenue forecasts for 2026 to 2028 by 14%, 94%, and 58% respectively, to RMB 2.408 billion, RMB 21.008 billion, and RMB 45.508 billion, to reflect the better-than-expected first-half results this year and the favorable revenue guidance for next year. Net profit forecasts for 2027 to 2028 were raised by 35% and 10%, to RMB 4.179 billion and RMB 11.967 billion.