Daiwa raises Biren Technology target to HK$130 on upbeat revenue guidance
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Daiwa Securities released a research report stating that Biren Technology's management recently raised its 2027 revenue guidance from 10 billion yuan to 20 billion yuan. The analyst attributes this to recent price increases for mainstream AI chips in the Chinese market and a product mix shift boosting super-pod solution revenue contributions, reflecting confidence in the company's flagship BR20x chip development and customer orders. Daiwa reiterates a 'Buy' rating and raises the target price from HK$100 to HK$130, corresponding to a 2027 forecast price-to-sales ratio of about 15 times. The firm has raised its 2026-2028 revenue forecasts by 14%, 94%, and 58% to 2.408 billion, 21.008 billion, and 45.508 billion yuan respectively, citing strong first-half performance and next year's guidance. Net profit forecasts for 2027 and 2028 are raised by 35% and 10% to 4.179 billion and 11.967 billion yuan.
Source report
Daiwa Securities has issued a research report indicating that Biren Technology's management recently raised its 2027 revenue guidance from RMB 10 billion to RMB 20 billion. The revision is attributed to a recent increase in the average selling price of mainstream AI chips in the Chinese market, as well as a shift in product mix that has boosted revenue contributions from the super-pod solution. Daiwa believes this reflects the company's confidence in the future development of its flagship BR20x chip and its ability to secure customer orders.
The firm reiterates a "Buy" rating and has raised its target price from HK$100 to HK$130, corresponding to approximately 15 times the forecast price-to-sales ratio for 2027.
Revised Financial Forecasts
Daiwa has adjusted its revenue forecasts for the 2026–2028 period as follows:
- 2026: Up 14% to RMB 2.408 billion
- 2027: Up 94% to RMB 21.008 billion
- 2028: Up 58% to RMB 45.508 billion
These upward revisions reflect the company's performance in the first half of this year and the positive revenue guidance for next year.
Profit Forecast Adjustments
Daiwa has also raised its net profit forecasts:
- 2027: Up 35% to RMB 4.179 billion
- 2028: Up 10% to RMB 11.967 billion
Source
格隆汇Neutral / independent