Key Takeaways:
- DBS initiates coverage on Biren Technology with a HK$80.74 fair value
- Revenue projected to grow at 147% CAGR through 2028 on AI GPU demand
- Company expected to turn profitable by fiscal 2027
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Biren Technology gets HK$80.74 fair value from DBS on AI GPU demand
DBS initiated coverage on Biren Technology with a HK$80.74 fair value, implying 31% upside from the stock's HK$61.45 close.
"Biren is China's leading domestic general-purpose GPU designer, offering a complete AI training and inference solution that will benefit from the structural expansion of Chinese cloud service providers' capital expenditure," DBS said in its initiation report.
The bank projects Biren's revenue will grow at a 147% compound annual rate from fiscal 2025 through fiscal 2028, more than double the industry average of 72%. Revenue is expected to reach 2.73 billion yuan in fiscal 2026, up 164% from 1.03 billion yuan in fiscal 2025, then climb to 7.60 billion yuan in fiscal 2027 and 16.65 billion yuan in fiscal 2028. DBS forecasts Biren will post a net loss of 854 million yuan in fiscal 2026 before turning profitable in fiscal 2027 with net income of 1.19 billion yuan, rising to 4.06 billion yuan in fiscal 2028.
Biren, which listed on the Hong Kong Stock Exchange in January 2026, is the most heavily capitalized domestic Chinese GPU developer with about $900 million raised from investors including Sequoia China, Tencent and Alibaba. The company's BR100 and BR200 series GPUs target AI training and inference workloads, with the upcoming BR300 series expected to ship in volume from the second half of 2026. The demand backdrop is structural: China's token consumption — a measure of AI inference compute demand — is projected to grow at a 1,155% CAGR through 2030, driven by agentic AI adoption and government-mandated data localization that pushes enterprise workloads onto domestic silicon.
The DBS initiation provides a benchmark for a stock with limited analyst coverage since its listing. Biren's path to profitability hinges on the BR300 ramp in the second half of 2026 — any delay would push breakeven beyond the bank's 2027 forecast. Investors will watch for shipment volumes and margin data as the company transitions from the BR100 to the BR300 architecture.
This article is for informational purposes only and does not constitute investment advice.
