Movement Alert|SENSETIME-W Declines 3.04% in Regular Trading, Goldman Sachs Downgrade Pressure Continues to Weigh

Market Focus
Aug 11

On August 11, SENSETIME-W fell 3.04% in regular trading, trading at 1.44 HKD/share, with turnover of HKD 260 million. The decline reflects continued selling pressure following Goldman Sachs' recent rating downgrade.

Goldman Sachs downgraded SENSETIME-W from \"Buy\" to \"Neutral\" in its latest China software industry report, slashing the 12-month target price from HKD 3.55 to HKD 2.00. The revision was based on intensifying competition in the AI sector, weak enterprise IT spending, and large-scale commercialization progressing slower than expected. Goldman simultaneously widened its net loss forecasts, projecting losses of RMB 1.253 billion and RMB 357 million for the next two fiscal years respectively, citing pressure on AI private cloud revenue amid a cautious macro environment and constrained client budgets.

Separately, the company recently secured a multi-million-yuan education contract with Saudi Arabia's national school bus operations authority to build an AI-powered smart school bus management platform serving over 1.2 million students, though this positive development has been insufficient to offset the broader ratings downgrade impact.

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