DBS has released a research report providing an initial assessment of BIREN TECH (06082). The report does not assign a formal rating but gives a fair value estimate of HK$80.74, representing an approximate 31% upside from the current price of HK$61.45.

The report notes that BIREN TECH is a leading Chinese designer of domestic general-purpose graphics processing units (GPGPUs). Its products cover a complete solution for AI training and inference, positioning the company to benefit from the structural opportunity presented by the significant expansion in capital expenditure from Chinese cloud service providers (CSPs).

DBS forecasts that BIREN TECH's revenue will achieve a compound annual growth rate (CAGR) of 147% from the 2026 to 2028 fiscal years, far exceeding the industry average of 72%. Specifically, revenue is projected to grow from RMB 1.0346 billion in FY2025 to RMB 2.733 billion in FY2026 (a year-on-year increase of approximately 164%), then to RMB 7.5952 billion in FY2027 (up about 178%), and further to RMB 16.6534 billion in FY2028 (an increase of roughly 119%).

Regarding profitability, the company is expected to still record a net loss of RMB 854.2 million in FY2026. However, it is projected to turn profitable in FY2027 with a net profit of RMB 1.1904 billion, which is forecast to grow further to RMB 4.0576 billion in FY2028.