Goldman Picks Inovance, Estun for China AI Hardware Exports Worth Up to $212 Billion
Updated
Updated · CNBC · Aug 16
Goldman Picks Inovance, Estun for China AI Hardware Exports Worth Up to $212 Billion
1 articles · Updated · CNBC · Aug 16
Summary
Goldman Sachs said China has entered a new phase of AI-related hardware exports, creating potential winners in markets it estimates could reach $12 billion to $212 billion by 2030.
Inovance and Estun are its preferred names because product competitiveness, R&D speed and cost matter more than macro trends in industrial automation and robotics, especially as exporters push into Europe and Southeast Asia.
Inovance, rated buy, has a 92.90 yuan target price implying more than 50% upside; Goldman said Europe is its key overseas market and its addressable market outside China could more than triple from $163 billion by 2030.
Estun, rated neutral with an HK$11.80 target, is expanding in Southeast Asia with Chinese manufacturing customers, where Goldman sees its market share rising to about 10% by 2030 from 3% this year.
The shift comes as uncertainty over U.S. curbs on high-tech imports from China pushes more companies to seek growth abroad, with Beijing set to host the World Robot Conference on Aug. 19-23.