China Merchants Securities (CMSI) reiterated its “Overweight” rating on Black Sesame Technologies (02533.HK), citing the company’s strong growth prospects in the intelligent vehicle space and an in-line revenue forecast of RMB8.22 billion for 2025. The firm maintained its target price of HKD26.5 for the chipmaker.
The positive outlook is based on Black Sesame’s successful transition from a hardware supplier to a comprehensive edge-side AI computing power platform, according to the CMSI report. The broker highlighted the company’s flagship A2000 chip as a key driver for future growth.
The A2000 chip ranks in the first tier of the market based on core performance metrics. Its high cost-performance ratio directly addresses the cost-reduction needs of major original equipment manufacturers (OEMs) like BYD COMPANY (01211.HK) and GEELY AUTO (00175.HK). CMSI notes that the penetration rate of the A2000 chip within these leading auto brands is likely to increase.
The endorsement from CMSI and the adoption by major automakers could solidify Black Sesame’s market position and boost investor confidence. With the ramp-up of its high-end chips and expansion into robotics and commercial vehicles, the company’s revenue and gross margin are projected to grow in tandem over the next two to three years. Investors will be watching for further integration announcements with other major car manufacturers.
This article is for informational purposes only and does not constitute investment advice.
