Bairong Inc.: Strategic Recovery and AI Investment Drive Buy Rating

Richard Xu, an analyst from Morgan Stanley, maintained the Buy rating on Bairong, Inc. Class B (6B5 – Research Report). The associated price target is HK$13.00.

Richard Xu’s rating is based on Bairong Inc.’s strategic initiatives and financial performance. The company has shown a sequential recovery in revenue in the second half of 2024, particularly in its MaaS segment, which rebounded from a decline in the first half. This recovery is supported by Bairong’s focus on strengthening its product offerings and expanding into diverse industries like e-commerce, which positions the company for future growth.
Furthermore, Bairong’s management has committed to significantly increasing investment in AI-related areas in 2025, with plans to enhance its VoiceGPT model and CybotStar platform. Despite the potential short-term impact on profits due to increased R&D spending, these investments are expected to lay a strong foundation for long-term competitiveness and revenue growth. The company’s stable gross margin and narrowed profit decline in the latter half of 2024 further support the positive outlook, leading to Xu’s Buy rating.

According to TipRanks, Xu is ranked #4337 out of 9406 analysts.