Goldman Sachs: SENSETIME-W (00020) mid-term profit alert exceeds expectations, target price raised to HK$2.05.

Goldman Sachs released a research report stating that SENSETIME-W (00020) profit forecast indicates that the mid-term net profit will be between 500 million to 700 million RMB, achieving a turnaround to profitability, with the target price raised from HKD 2 to HKD 2.05. The management attributes the improvement in performance to cost management and productivity enhancements leading to improved operational efficiency, as well as non-operating income exceeding expectations. Goldman Sachs believes that SenseTime, as a comprehensive solution provider of computing power, AI models, and applications, will continue to expand the coverage of generative AI products, raising its profit forecasts for 2028 to 2032 by 13%, 5%, 2%, 2%, and 1%, respectively, while revenue and gross margin forecasts remain largely unchanged. The firm believes that SenseTime's AI models are heading towards "Delegated Intelligence," where future users will focus on the delivery of AI output results, aiding large-scale commercialization.