Citigroup: Conducting a 90-day upward catalyst observation on Lanqi Technology, target price is 205 Hong Kong dollars.

Citigroup released a research report, conducting a 90-day observation on Lanqi Technology as an upward catalyst. It is expected that the outline of the 15th Five-Year Plan will be announced after the National People's Congress next month. If the authorities mention a positive AI capital expenditure support plan at that time and set AI infrastructure development goals for the market, it will help Lanqi Technology's valuation to be further reassessed. The bank also pointed out that the growth in demand for CPU-based servers and new developments in smart body AI applications may be catalyzed, leading to more DIMM storage module usage, bringing upward potential to the company's storage interface business and driving profit growth in the next two years. Citigroup has given Lanqi Technology a "buy" rating with a target price of 205 Hong Kong dollars, corresponding to a forecast price-to-earnings ratio of about 54 times from the second half of this year to the first half of next year.