Core Insights - Wallen Technology is a leading domestic AI chip company focusing on GPGPU technology and related products, with a strong emphasis on innovation and market opportunities [1][2] Group 1: Company Overview - Founded in 2019, Wallen Technology has a diverse team with backgrounds from major companies like AMD and Huawei, and holds 1,158 global invention patents as of June 2025, ranking first among Chinese GPGPU companies [1] - The company primarily offers GPGPU, boards, modules, servers, and cluster products, projecting revenues of 336.8 million yuan in 2024 and 58.9 million yuan in the first half of 2025, indicating steady commercialization progress [1] Group 2: Product and Technology - Wallen Technology focuses on GPGPU architecture and is pioneering in Chiplet technology and optical switching, with the BR166 achieving double the computing and memory performance of the BR106, and a bidirectional bandwidth of 896 GB/s [2] - The hardware supports various deployment forms like OAM and PCIe, while the software platform is compatible with mainstream frameworks like PyTorch, showcasing the company's full-stack optimization capabilities [2] Group 3: Financial Performance - The company's gross margin is projected to be 76.4% in 2023, decreasing to 53.2% in 2024, and further to 31.9% in the first half of 2025 due to an increase in entry-level product sales [2] - Customer diversification is improving, with the top five customers accounting for 97.9% of revenue in the first half of 2025, and the largest customer contributing only 33.3% of total revenue, indicating reduced dependency on major clients [2] Group 4: Ecosystem and Supply Chain - Wallen Technology collaborates with companies like Xizhi Technology and ZTE to launch the LightSphere X optical switching super node, which supports large-scale deployments and adapts to the needs of large model training [3] - The company has achieved self-sufficiency in its supply chain, completing domestic replacements for key components, and plans to commercialize the next-generation BR20X architecture by 2026 without being affected by the BIS entity list [3] Group 5: Investment Outlook - Wallen Technology is rated as a "Buy," with projected revenues of 950 million yuan, 2.02 billion yuan, and 3.95 billion yuan for 2025-2027, and adjusted net profits of -830 million yuan, -630 million yuan, and 74 million yuan respectively [4] - The current market valuation corresponds to a price-to-sales ratio of 20x for 2027E, with a weighted average of 28x for comparable companies, reflecting the significant potential in domestic AI capital expenditures [4]

9 February 2026 | 8:59PM HKT Equity Research Biren (6082.HK) Local GPU leader for AI training/ inferencing; Initiate at Buy with TP at HK$54 6082.HK 12m Price Target: HK$54.00 Price: HK$33.66 Upside: 60.4% Biren is a local GPU leader, and we expect the company's AI training/ inferencing GPU business to achieve a 101% CAGR in 2025-30E, driven by (1) rising China Cloud Capex spending, indicating a ramp up in AI infrastructure within China following the launch of leading local foundation models in late 2024, ( ...

Core Viewpoint - The successful IPO of Wallen Technology marks a significant milestone in the domestic AI chip industry, positioning it as the first GPU stock in the Hong Kong market and reflecting the growing demand for AI computing power [1][3][5]. Company Overview - Wallen Technology, founded by Zhang Wen in September 2019, aims to develop top-tier domestic general-purpose computing chips, particularly in the high-performance GPU sector, which is crucial for AI development [6][10]. - The company has successfully developed its first-generation GPGPU architecture and two chips, BR106 and BR110, and plans to launch the next-generation BR20X series by 2026 [10][11]. Market Demand and Growth - The global demand for AI computing power has surged, with the Chinese AI chip market projected to grow from 142.54 billion yuan in 2024 to 1,336.79 billion yuan by 2029, with GPUs expected to increase their market share from 69.9% to 77.3% during the same period [4][5]. - Wallen Technology's revenue has seen exponential growth, from 499,000 yuan in 2022 to 620.3 million yuan in 2023, with a compound annual growth rate of 2500% [11]. Capital Market Strategy - Wallen Technology's IPO raised a total of 5.583 billion HKD, the largest fundraising project since the implementation of the Hong Kong Stock Exchange's 18C chapter for specialized technology companies [7]. - The funds will primarily be allocated to R&D for intelligent computing solutions, with 85% directed towards developing and upgrading existing GPGPU chips and software platforms [7][8]. Competitive Landscape - The AI chip market in China is highly concentrated, with the top two players holding 76.2% and 18.2% of the market share, indicating fierce competition and significant growth potential for domestic GPU companies [11]. - Wallen Technology is positioned among the top tier of domestic GPU firms, alongside companies like Moore Threads and Muxi Technology, highlighting its competitive standing in the industry [6][10].

Core Viewpoint - The successful listing of Wallen Technology marks a significant milestone for domestic GPU companies, highlighting the critical need for China to establish its own computing power supply capabilities in the context of AI becoming a key driver of the global economy [1][22]. Market Overview - The global intelligent computing chip market is projected to grow from $6.6 billion in 2020 to $119 billion by 2024, with a compound annual growth rate (CAGR) of 106%, and expected to reach $585.7 billion by 2029, maintaining a CAGR of 37.5% from 2024 to 2029 [2]. - China's intelligent computing chip market is anticipated to reach $201.2 billion by 2029, with a CAGR of 46.3% from 2024 to 2029, significantly outpacing the global average [3]. Competitive Landscape - The intelligent computing chip market is highly concentrated, with NVIDIA dominating globally, while the top two players in China are expected to hold 94.4% of the market share by 2024, leaving over 15 participants with less than 1% each [3][4]. - In the GPGPU sector, the top two players are projected to account for 98% of the market share in 2024, indicating a significant concentration of power [4]. Technological Innovation - Wallen Technology adopts a Chiplet architecture, which allows for greater flexibility, scalability, and cost efficiency, addressing the challenges of rising costs and declining yields in traditional single-chip designs [6][10]. - The BR166 GPGPU chip, utilizing Chiplet technology, demonstrates a twofold improvement in key performance metrics compared to its predecessor, the BR106 [6][9]. System-Level Delivery - Wallen Technology emphasizes its system-level delivery capabilities rather than just chip performance, positioning itself as a provider of comprehensive intelligent computing solutions rather than merely a GPU supplier [10][13]. - The company has developed a complete hardware ecosystem that includes PCIe, OAM, and server products, along with a self-developed software platform to optimize performance and manage large-scale GPGPU clusters [12][13]. Financial Performance - Wallen Technology's revenue grew from 62 million yuan in 2023 to 336.8 million yuan in 2024, representing a growth of over 400%, with continued growth into 2025 [16][17]. - The company recorded gross profits of 47.4 million yuan and 179.2 million yuan in 2023 and 2024, respectively, with gross margins of 76.4% and 53.2% [18]. Research and Development - Wallen Technology has maintained high R&D expenditures, with 1.018 billion yuan in 2022, 886 million yuan in 2023, and 827 million yuan in 2024, reflecting a commitment to innovation in a capital-intensive industry [19][21]. - The company is advancing its next-generation flagship data center chip, BR20X, expected to be commercialized in 2026, which aims to enhance efficiency in large model training and inference [21]. Conclusion - The success of Wallen Technology's listing and its strategic focus on engineering solutions and system-level delivery reflect a broader trend in the Chinese GPU industry towards achieving self-sufficiency in computing power, essential for supporting the digital economy [22].

Investment Rating - The industry rating is "Outperform the Market," indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% in the next six months [15]. Core Insights - The report highlights the recent trend of domestic GPU companies in Hong Kong initiating capitalization, with Wallen Technology listing on January 2, 2023, and experiencing a closing price increase of 75.8% on its first day. Additionally, Tensowise has passed the Hong Kong Stock Exchange hearing and plans to list on January 8, while Kunlun Chip has submitted a listing application [3][4]. - Wallen Technology focuses on independent research and development, with over 1,500 global patent applications and 600 granted patents. Its GPU products cater to various applications, including cloud training and inference, with significant revenue growth in its intelligent computing solutions [6]. - Tensowise prioritizes the AI sector, with its inference series driving revenue growth. The company has seen a substantial increase in revenue from its inference products, which have become a significant part of its overall revenue [7]. Summary by Sections Wallen Technology - Wallen Technology has launched multiple GPU products, including BR106, BR166, and BR110, designed for various applications such as cloud training and edge inference. The company reported intelligent computing solutions revenue of 58.15 million yuan in the first half of 2025, a year-on-year increase of 48%, with a gross margin of 31.2% [6]. Tensowise - Tensowise has introduced three generations of its training series, with the Tianwei series designed for large-scale AI training. The company allocates 5% of its global offering proceeds to R&D for AI computing solutions, targeting industries with strong domestic substitution demand [7]. - The revenue from Tensowise's inference series has shown significant growth, with 87.02 million yuan in revenue for the first half of 2025, accounting for 26.8% of total revenue, compared to 430,000 yuan in 2022 [7].

Core Insights - Wall Street's first IPO of the year is the successful listing of Birran Technology on the Hong Kong Stock Exchange, marking it as the first GPU stock in the Hong Kong market with an opening price of HKD 19.60 per share and a market capitalization exceeding HKD 100 billion [1][2] Company Overview - Birran Technology was founded in 2019 by Harvard PhD Zhang Wen, who transitioned from Wall Street to entrepreneurship, focusing on the GPU chip sector [2][4] - The company has attracted significant investment interest, with 23 top-tier investment institutions planning to subscribe for HKD 28.99 billion, achieving a remarkable subscription rate of over 2300 times [2] Technological Development - Birran Technology has adopted a challenging technical route, aiming to develop large GPGPU chips that compete with next-generation products from international giants [6][9] - The company successfully launched its first general-purpose GPU chip, the BR100 series, in March 2022, achieving a peak computing power of 10 petaflops per second, directly competing with NVIDIA's flagship products [7][9] Financial Performance - The revenue trajectory of Birran Technology shows significant growth, with revenues of RMB 0.499 million in 2022, RMB 0.62 billion in 2023, and projected revenues of RMB 3.37 billion in 2024 [9] - The company has secured substantial orders, with a total value of approximately RMB 20 billion from various sectors, including telecommunications and AI data centers [15][16] Market Position and Future Outlook - The Chinese intelligent computing chip market is projected to grow from USD 1.7 billion in 2020 to USD 30.1 billion by 2024, with a compound annual growth rate (CAGR) of 105% [15] - Birran Technology's strategic positioning and technological advancements are expected to play a crucial role in the domestic GPU market, which is increasingly moving towards self-sufficiency and reducing reliance on imports [16][17]

Core Viewpoint - Wallen Technology, a leading GPU company in Shanghai, has successfully listed on the Hong Kong Stock Exchange, becoming the first domestic GPU stock and the first new stock listed in the Hong Kong market in 2026 [2] Group 1: Company Overview - Wallen Technology's IPO price was HKD 19.60 (approximately RMB 17.60), with an opening price surge of 82.14% to HKD 35.70 (approximately RMB 32.05), resulting in a market capitalization of HKD 855.42 billion (approximately RMB 768 billion) [2] - As of 9:35 AM, the stock price reached HKD 41.80 (approximately RMB 37.52), with a latest market capitalization of HKD 1002 billion (approximately RMB 899 billion) [2] - Founded in 2019, Wallen Technology reported revenue of RMB 49.9 million in 2022, projected to grow to RMB 337 million in 2024, reflecting a compound annual growth rate (CAGR) of 2500% [3][5] Group 2: Technological Achievements - Wallen Technology is the first Chinese company to adopt 2.5D chiplet technology for dual AI computing bare chips and has achieved significant technical milestones in the domestic AI chip sector [5] - The company has a high R&D ratio, with 83% of its workforce in R&D and over 70% of its expenses allocated to R&D, ranking first in China for the number of invention patent applications in the GPGPU sector [8][9] - Wallen Technology has applied for over 1500 patents globally, with a 100% authorization rate for invention patents, establishing a strong patent wall for long-term development [9] Group 3: Product Development and Innovation - The company has developed a self-researched GPGPU architecture that integrates innovations to enhance performance and efficiency, with plans for next-generation chips supporting FP8 and FP4 precision [15][16] - Wallen Technology's GPGPU architecture features advanced designs such as dual chiplets, tensor core architecture, and near-memory computing, significantly improving AI computation efficiency and energy consumption [18][19] - The company has successfully commercialized high-performance OAM and general-purpose boards, being one of the first in China to do so [22] Group 4: Market Position and Strategy - Wallen Technology aims to provide comprehensive solutions for large-scale intelligent computing clusters, integrating its hardware and software with third-party infrastructure [27] - The company has established partnerships with major telecom operators and has served nine Fortune China 500 companies, including five from the Fortune Global 500 [32] - Wallen Technology's software platform, BIRENSUPA, is designed to lower migration costs and enhance ecosystem development, supporting various AI models and facilitating collaboration with top universities [31]

Group 1 - Wallan Technology (06082.HK) has officially listed on the Hong Kong Stock Exchange, becoming the first general-purpose AI chip company to go public in 2025, with an opening price increase of over 100% and a market capitalization exceeding HKD 94 billion [1] - Founded in 2019 by a team of former AMD and NVIDIA chip architects, Wallan Technology has launched several high-performance GPUs, including BR100, BR104, BR106, and BR166, and has become a key player in China's AI infrastructure [1] - The investment from Shanghai State-owned Capital, which holds a 3.7853% stake in Wallan through Shanghai Lingang Economic Development Group, signifies a strategic move in the AI computing power sector [2] Group 2 - The Shanghai Guotou Pioneer AI Industry Fund made a direct investment in Wallan Technology, marking its first direct investment project, which breaks from the traditional indirect investment model [3] - This investment not only provides financial support but also enhances Wallan's capabilities in technology development, industry connections, and ecosystem collaboration [4] - Wallan's R&D expenses reached CNY 572 million in the first half of 2025, accounting for 79.1% of total operating expenses, highlighting the ongoing need for funding in its expansion and development efforts [4] Group 3 - The collaboration between Wallan Technology and Shanghai State-owned Capital has opened pathways for market entry, customer integration, and supply chain collaboration, enhancing the company's market recognition and stability [5] - Wallan's success is part of a broader ecosystem in Shanghai, which includes multiple GPU and computing power chip companies, forming a dense entrepreneurial matrix [8] - Shanghai has emerged as a capital hub for the domestic GPU sector, with leading companies collectively raising over CNY 20 billion, indicating strong investor interest and confidence in the industry [9] Group 4 - The Shanghai government has set ambitious goals for the AI computing cloud industry, aiming for a scale of CNY 200 billion by 2027, with a focus on building large-scale computing clusters and a unified scheduling platform [12] - Wallan's IPO is seen as a significant milestone for the domestic computing power ecosystem, marking the beginning of a new phase in the development of China's AI infrastructure [12] - The strategic investment and support from Shanghai State-owned Capital are crucial for fostering a sustainable and competitive environment for hard-tech companies like Wallan Technology [11]

Core Viewpoint - Wallen Technology, the first GPU stock in Hong Kong, has seen strong subscription response with an oversubscription of 2363 times during its offering period [1] Group 1: IPO Details - Wallen Technology (stock code: 06082.HK) set its H-share issuance price at HKD 19.60 per share, raising a total of HKD 48.55 billion, marking the largest IPO since the implementation of Chapter 18C of Hong Kong's listing rules [1] - The company is expected to begin trading on the Hong Kong Stock Exchange on January 2, 2026, making it the first new stock listed in Hong Kong for the new year [1] - CICC, Ping An Securities (Hong Kong), and Bank of China International are serving as joint sponsors for the IPO [1] Group 2: Market Position and Product Pipeline - As the first GPU stock in Hong Kong, Wallen Technology fills a gap in the AI computing hardware sector within the Hong Kong market [1] - As of December 15, Wallen Technology has approximately RMB 1.241 billion in orders, indicating a clear growth trajectory for future performance [1] - The BR166 product is expected to achieve commercialization in the second half of 2025, while the BR20X series chips are planned for commercialization in 2026, with further new generation products like BR30X in the pipeline, showcasing the company's capability for continuous iteration and growth [1]

Investment Rating - The report maintains an investment rating of "Leading the Market - A" for the communication industry [1]. Core Insights - The domestic GPGPU sector is expected to be a focal point in the capital market in 2026, with companies like Moer Thread and Muxi Co. recently entering the market, and Biran Technology and Tian Shu Zhixin passing the Hong Kong Stock Exchange hearing [5][17]. - The demand for data center optical fibers is anticipated to surge, with early signs of price increases in the market, as domestic and international manufacturers report a 15% price rise in common cable fibers [10][20]. - The report highlights the rapid development of supernode servers as a key beneficiary segment for domestic GPUs, suggesting investment opportunities in upstream components such as copper connections and network interface chips [9][19]. Summary by Sections Industry Dynamics - Moer Thread held its first developer conference, unveiling a new architecture and several products, including the "Huagang" architecture, which supports FP4 to FP64 precision calculations, with a 50% density increase and a 10-fold efficiency improvement [6][17]. - Muxi Co. achieved a market capitalization exceeding 280 billion after its debut on the Sci-Tech Innovation Board, positioning itself as a strong competitor in the domestic GPGPU market [7][18]. - Biran Technology has passed the Hong Kong Stock Exchange hearing, with its BR100 series achieving peak performance at the PFLOPS level, and it has secured sales agreements valued at 1.24 billion [8][19]. - Tian Shu Zhixin has a broad customer base across various sectors, with GPU shipments reaching 15,700 units in the first half of 2025 and revenues of 324 million [8][19]. Market Overview - The overall market saw a slight decline during the week of December 15-19, 2025, with the Shanghai Composite Index rising by 0.03% while the Shenzhen Component Index and the ChiNext Index fell by 0.89% and 2.26%, respectively [12][22]. - The top-performing sectors included liquid cooling, optical cables, and satellite communications, with weekly gains of 15.85%, 11.88%, and 10.73% [12][22]. Investment Recommendations - The report suggests focusing on companies in the following sectors: - Domestic supernodes: Unisplendour, ZTE, Inspur, Huaqin Technology, Huafeng Technology, Xinke Materials, Shengke Communication, and Heshun Petroleum [22]. - Commercial aerospace: Shanghai Hanxun, Xinke Mobile, Fenghuo Communication, Mengsheng Electronics, Haige Communication, and Qian Zhao Optoelectronics [22]. - Optical fibers and cables: Zhongtian Technology, Hengtong Optic-Electric, Changfei Fiber, Yongding Co., Taichen Optoelectronics, Shijia Photonics, and Changxin Bochuang [22].