China is poised to significantly expand its export of artificial intelligence-related hardware, according to analysts from Goldman Sachs. Their research indicates that companies in this sector may encounter market opportunities ranging from $12 billion to $212 billion by the year 2030. In light of increasing uncertainties regarding U.S. restrictions on high-tech imports from China, many exporters are redirecting their focus towards European and Southeast Asian markets.
Goldman Sachs has identified industrial automation and robotics as particularly promising sectors, where the success of corporate strategies may outweigh broader economic trends. The analysts emphasized that companies that exhibit strong product competitiveness, accelerate research and development, and maintain cost efficiency are likely to emerge as successful long-term players.
Among the firms highlighted are Estun and Inovance. Estun, located in Hong Kong, is poised for growth in Southeast Asia, capitalizing on demand from its Chinese manufacturing clients. The company’s market share in the region is expected to increase from 3% to approximately 10% by 2030, amidst a total addressable market outside China projected at $20 billion. However, analysts remain "neutral" on Estun, assigning a price target of 11.80 Hong Kong dollars ($1.50).
Inovance, based in Shenzhen, is viewed as strategically positioned in Europe, with its total addressable market expected to triple from $163 billion by 2030. Goldman Sachs has rated Inovance a "buy," setting a price target of 92.90 yuan ($13.78), indicating potential upside of over 50% from its recent trading close.
The upcoming World Robot Conference in Beijing, scheduled for August 19 to 23, is expected to further highlight China’s ambitions in this sector.
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