BOC International: Raising the target price of Aixin Yuanzhi (00600) to HK$37 to maintain a “buy” rating

The Zhitong Finance App learned that BOC International released a research report stating that it raised the target price of Aixin Yuanzhi (00600) to HK$37 to maintain the “buy” rating. The bank said it raised the company's 2026-2028 revenue forecast to 970 million yuan, 1.95 billion yuan and 3.73 billion yuan, considering that the new end-side AI product, AX8860, may further drive overall revenue growth, and the company maintains close cooperation with the fab and is expected to ensure product supply under tight overall foundry capacity.

The bank expects the gross margin of various products to remain relatively stable, and to adjust the company's gross margin forecast for 2026 to 2028 to 33.8%, 39.9% and 42.8%, taking into account changes in the overall product structure. The bank maintains the company's forecast for a positive EBITDA in 2027 and profit in 2028.

BOC International pointed out that Aixin Yuanzhi unveiled new edge AI products at this year's Shanghai Industrial Fair, which is expected to seize the edge and end side AI market opportunities. Furthermore, the company's intelligent driving chip business is progressing smoothly, and the performance of the end-side computing business may also be better than previously anticipated.