00020 Should I Buy

The analyst rating for SENSETIME-W (00020.HK) was influenced by several key factors outlined in the CLSA report. The primary reasons include: 1. Significant Reduction in Net Loss: The report predicts a 53% year-over-year reduction in adjusted net loss, projecting it to be RMB2.5 billion in FY25. This improvement is attributed to growth in generative AI revenue and a decline in operating expenses due to business restructuring. 2. Strategic Partnership: The partnership with CAMBRICON is expected to enhance SENSETIME-W's AI computing capabilities through the use of Chinese-made chips, which could further drive growth. 3. Increased Target Price: The target price for SENSETIME-W was raised from HKD1.85 to HKD3, reflecting a positive outlook on the company's future performance. These factors collectively support the Outperform rating assigned to SENSETIME-W.