Citigroup: Reiterates Lanqi Technology's (06809) “Buy” rating target price increase to HK$425

The Zhitong Finance App learned that Citi released a research report stating that it reaffirmed the “buy” rating of Lanqi Technology (06809) and regarded it as one of the best AI infrastructure targets among Chinese semiconductors. The company's revenue and net profit for the second quarter of 2026 both set records, and the fundamentals are stable. Although gross margin was slightly lower than expected, accelerated revenue growth is expected to drive stronger earnings growth in 2026-2028. The target price was raised from HK$305 to HK$425 based on an upward forecast and rolling valuation benchmark. The bank believes that Lanqi Technology is an important beneficiary of AI and domestic alternatives in China, and the valuation is not expensive.