Lyon: bullish on BIREN TECH (06082) product line and delivery capabilities, raise target price to HK$67.4.

Lyon released a research report stating that it is optimistic about BIREN TECH's product line and strong delivery capabilities. The firm believes that China's shortage of computing power will at least last until 2027, and BIREN TECH is expected to benefit from the supply-demand imbalance and the trend towards localization, standing out with its strong delivery capabilities. The firm has raised its target price from HK$46.3 to HK$67.4 and maintains an "outperform the market" rating. The report mentions that BIREN TECH's first-generation product BR10X has been deployed on a large scale in government-led scenarios, and the next-generation BR20X series is expected to complete tape-out in the third quarter of 2026 with target customers being top-tier hyperscalers. It will have higher computing density, larger memory capacity and bandwidth, and interconnection capabilities. The company's long-term goal is to capture 10% of the market share in the China AI chip market. The firm has raised its revenue forecast for the company's fiscal years 2026 and 2027 by 10% and 32% to reflect stronger domestic AI demand and accelerated shipments of BR20X. The target price has been raised based on a higher 28 times the average forecasted P/S ratio for 2026/27 (previously 25 times).