Goldman Sachs maintains Shangtang Technology's (00020) “buy” rating, with a target price of HK$3.53. It is optimistic about the generative AI layout

The Zhitong Finance App learned that recently, Goldman Sachs, an internationally renowned investment bank, released a research report stating that based on Shangtang Technology (00020)'s technical advantages, product innovation, and broad market prospects in the field of generative AI, Goldman Sachs maintained a “buy” rating for Shangtang Technology. The target price for 12 months is HK$3.53. Meanwhile, Goldman Sachs predicts that the revenue contribution rate of Shangtang Technology's generative AI will reach 91% in 2030, and is expected to achieve a positive EBITDA (profit before interest, tax, depreciation and amortization) in 2026, amounting to 205 million yuan.

Shangtang Technology has intensively released new generative AI products, opening up a new model of cost reduction and efficiency

Goldman Sachs believes that Shangtang Technology has recently launched a variety of next-generation generative AI products, including the multi-series generation smart Seko 2.0, the office smart “Little Raccoon 3.0,” and the “Like a Shadow” marketing agent. These products not only achieved significant improvements in content generation capabilities, but also showed strong cost advantages in terms of end-side deployment solutions. It is worth mentioning that KAPI Camera, an upgraded camera product during the Shangtang AI product launch week, successfully topped the Apple App Store's “photography and video” app list in China today, setting off another boom in AI applications. Previously, Kapi cameras were popular overseas. It first became number one in the App Store app list in countries such as the Philippines and New Zealand, and broke into the top five lists in many European countries such as the United Kingdom, France, and Germany. The total number of users also exceeded 10 million.

Seko 2.0, Shang Tang Technology's multi-series generation smart device, is a major highlight. Its core advantage is that it relies on LightX2V, the industry's first inference architecture that can generate real-time video, developed independently by Shangtang Technology, to achieve low-cost, strong real-time video generation. Compared to traditional production methods, the production cycle of comics can be reduced by 80% to 90%. Goldman Sachs analyzed in the research report that with the continuous reduction in the price of AI video generation tools and the further extension of the time it takes to generate videos, the commercialization prospects of Seko 2.0 are very broad.

In the office sector, Shangtang Technology's AI office smart device “Little Raccoon 3.0” has also attracted much attention. The core upgrade point of this product is to generate high-quality PPT with one click, complete second-level processing of large-scale data based on long-chain thinking ability, and cross-platform workflow with multi-terminal deployment. Goldman Sachs expects the office software market to reach 17 billion US dollars by 2030, and generative AI functions will bring incremental revenue to the market.

For live e-commerce, Shangtang Technology's “Like a Shadow” marketing agent enhances its operational efficiency through a “five major intelligence matrix” composed of four e-commerce agents and digital people to meet the diverse needs of users. For example, the store operation agent fully automates the back-office management process; the live broadcast operation agent increases the efficiency of live streaming data by 6 times; the traffic delivery agent can simultaneously monitor the data of multiple stores and generate summary reports, and can also provide intelligent delivery strategies; the live broadcast agent allows the anchor to “self-service” the field control operation; and the digital human agent can reproduce the live broadcast room with high quality to achieve “same-day reproduction and same-day broadcast”. Goldman Sachs believes that the launch of this new product marks the expansion of Shangtang Technology to specific scenarios to promote value monetization by improving customer productivity.

Goldman Sachs is optimistic for a long time and predicts that Shangtang Technology will turn a loss into a profit in 2026

In terms of valuation evaluation, Goldman Sachs comprehensively applied the two-stage DCF (cash flow discount) model and the EV/sales (corporate value/sales) ratio expected in 2026 to comprehensively consider Shangtang Technology's long-term growth potential and recent market momentum, and finally gave Shangtang Technology a target price of HK$3.53 for 12 months. There is 73% upside compared to the current stock price.

Looking at the business revenue structure, public data shows that in the first half of 2025, Shangtang Technology's revenue contribution rate of generative AI reached 77%, driven by businesses such as private cloud, public cloud, and artificial intelligence projects. Goldman Sachs further predicts that by 2030, this ratio will rise sharply to 91%, demonstrating the strong driving force of the generative artificial intelligence business for Shangtang Technology's future performance growth.

In terms of profit expectations, Goldman Sachs predicts that Shangtang Technology will achieve a positive EBITDA (profit before interest, tax, depreciation and amortization) in 2026, reaching 205 million yuan; by 2027, this profit figure will further jump to 1,119 million yuan.