Goldman Sachs: Maintain Buy rating on BIREN TECH (06082) with a target price of HKD 80.5. AI chip shipments continue to rise steadily.

Goldman Sachs released a research report stating that it maintains a "Buy" rating for BIREN TECH (06082) and continues to derive a 12-month target price using the 2030 projected EV/EBITDA discount method to reflect the company's long-term growth. The target EV/EBITDA multiple has been updated from the previous 36.0x to 36.3x, discounted to 2027 at a constant cost of equity of 12.7%, while the 12-month target price remains unchanged at HKD 80.5. The report pointed out that Goldman Sachs expects the company's revenue for the first half of 2026 to be RMB 1.236 billion, representing a year-on-year increase of 1998% and a quarter-on-quarter increase of 27%, consistent with the company's guidance and the bank's expectations. The company's revenue for H1 2026 is 21% higher than Bloomberg's consensus estimate and 1% higher than the company's guidance, while the gross profit during the same period is RMB 527 million, with a gross margin of 42.7%. The company's operating expense ratio for the first half of 2026 is better than the bank's expectations and Bloomberg's consensus, reflecting an improvement in operational efficiency as shipment volumes increase. The company has also delivered AI chip computing clusters and Superpods to customers to enhance their AI training and inference efficiency, enabling the company to capitalize on the growing demand for computing power terminals in the Chinese market. Regarding the company's future growth, Goldman Sachs maintains an optimistic outlook, based on four key factors: first, an increase in local market cloud capital expenditures; second, a continuous rise in AI chip shipments; third, an upgrade of the product mix to more powerful AI chips with higher average selling prices; and fourth, an expansion of the customer base to include CSP customers. In terms of earnings forecasts, Goldman Sachs has incorporated BIREN TECH's performance for the first half of 2026 and has largely maintained its forecasts for 2027 to 2030. The bank roughly maintains its revenue forecast for 2026 while lowering the predicted operating expense ratio to reflect rising component costs, as the company's operational efficiency improves with increased shipment volumes. In terms of valuation, the target EV/EBITDA multiple is still derived based on the relationship between the updated forward-looking EV/EBITDA of peers and the average year-on-year EBITDA growth rate.