Goldman Sachs: Shangtang Technology (00020) is optimistic about the company's ability to provide multi-modal and long-term AI agents with a target price of HK$2.03

The Zhitong Finance App learned that Goldman Sachs released a research report stating that based on the two-stage DCF estimate of Shangtang Technology (00020), the target price for 12 months is HK$2.03, of which WACC is 11.5%, and the sustainable growth rate is 2%. The bank recently met with company executives in Hong Kong. Discussions focused on computing power platform expansion, AI strategy, and AI customer needs and customer base expansion. Goldman Sachs is optimistic about the company's ability to provide multi-modal and long-term AI agents, which can provide higher quality output to end users with lower token consumption in office and content creation scenarios, thereby driving customer adoption and AI spending.

Goldman Sachs's main views are as follows:

System-level AI product coverage models, tokens, and AI agents

Management focused on the company's system-level AI product portfolio, including “One Model System, One Token Factory, and One Agent Harness,” and combined with the company's own computing power platform and AI model, to help customers obtain a higher return on investment through generative AI. The management also said that the company's latest AI multi-modal model is based on NEO's unified architecture, uses an encoder-free design and MoT (Mixture of Transformation), which enables deeper integration of different content such as text, audio, images, and video.

Continue to expand the computing power platform and increase the focus on return on investment

The company continues to invest in computing power platforms to capture strong customer demand for AI products. With the proceeds from the April 2026 placement, Shangtang plans to expand the scale of AI computing power clusters powered by domestic AI chips and strengthen the domestic AI cloud technology stack. Management said that the company continues to pay attention to the return on investment of computing power platform expenses and enhances return on investment by closely tracking customer needs, improving the product portfolio, including AI Token plans and vertical applications, and optimizing the SenseCore platform.

Continued diversification of the customer base

Management said that the customer base of the company's products continues to diversify, customer coverage is expanding, and the concentration on a single customer is declining. The company's products are mainly aimed at three types of customers: one is to serve small businesses or developers through the AI Token Program; the second is to serve customers in TMT, finance, consumer electronics and other industries through AI overall solutions; the third is to provide AI applications to professionals or enterprise customers, such as Seko for AI video generation, and Raccoon for AI office scenarios, which uses the company's own AI model SenseNova 6.8-Flash-Lite.

valuation

According to the table attached to the report, Goldman Sachs estimates that the revenue for 2026 to 2028 will be 6456.7, 8386.5 and 9407.7 million yuan, respectively, with EBITDA of -993.5, 574.9 and 1256.8 million yuan, respectively, and EPS of 0.00, 0.01 and 0.01 yuan, respectively. The bank gave the company a 12-month target price of HK$2.03 based on a two-stage DCF valuation, of which WACC was 11.5% and a sustainable growth rate of 2%.