Lyon Securities issued a research report expressing optimism regarding BIREN TECH's (06082) product lineup and robust delivery capabilities. The firm believes that China's computing power shortage will persist at least until 2027. BIREN TECH is positioned to benefit from this supply-demand imbalance and the trend of domestic substitution, standing out due to its strong execution. Lyon has raised its target price for the stock from HK$46.3 to HK$67.4, maintaining an "Outperform" rating.

The report notes that BIREN TECH's first-generation BR10X products have already achieved scaled deployment in government-led scenarios. Its next-generation BR20X series is expected to complete tape-out in the third quarter of 2026. Targeting first-tier hyperscale data center operators, the BR20X series is designed to offer higher computational density, greater memory capacity and bandwidth, and enhanced interconnect capabilities. The company's long-term goal is to capture a 10% share of the Chinese AI chip market.

Lyon has increased its revenue forecasts for BIREN TECH's fiscal years 2026 and 2027 by 10% and 32%, respectively, reflecting stronger-than-expected domestic AI demand and an accelerated BR20X shipment timeline. The target price revision is based on a higher average forward price-to-sales ratio of 28x for 2026/2027, up from a previous multiple of 25x.