After meeting IMF chief Georgieva, Zelensky said the IMF will help Ukraine raise part of next year’s funding.

Daiwa raised its target price for Biren Technology (06082.HK) to HK$130 from HK$100 and reiterated a Buy, after management lifted 2027 revenue guidance to yuan 20 billion from yuan 10 billion. Daiwa said the revision reflects higher average selling prices for mainstream Chinese AI chips and a bigger revenue mix from super‑pod solutions, signaling confidence in the flagship BR20x chip and order pickup. The broker raised its 2026–28 revenue forecasts by 14%, 94% and 58% to yuan 2.408bn, yuan 21.008bn and yuan 45.508bn, and upped 2027–28 net profit forecasts by 35% and 10% to yuan 4.179bn and yuan 11.967bn. The new PT implies roughly 15x 2027 price-to-sales.

The mobile phone business was dragged down by rising storage costs, leading to a downward revision of shipment forecasts but an increase in ASP. UBS lowered its 2027/2028 smartphone shipment forecasts for Xiaomi by 12%/9% to 110.5 million/119.2 million units, respectively. It expects a 10.2% year-on-year decline in 2027, followed by a 7.9% recovery in 2028. This is mainly due to rising storage costs and potentially continued component supply shortages into 2027. However, UBS expects Xiaomi's ASP to increase by 11% in 2027, partially offsetting the shipment decline, with mobile phone revenue still expected to grow by 2%/8.9% in 2027/2028. Automotive and self-developed chips are long-term bright spots, but upfront investments are suppressing short-term profits. Positive consumer feedback after the launch of Xiaomi's Pengcheng series is expected to accelerate electric vehicle revenue in 2027. Meanwhile, Xiaomi released a new 3nm SoC (Xuanjie O3) and increased investment in MiMo large-scale AI. UBS believes the long-term synergy between chips, AI, and smart devices is promising, but the substantial upfront investment required could drag down near-term profitability. Earnings forecasts have been lowered, and valuations already reflect short-term pressures. UBS has lowered its adjusted net profit forecasts for 2027 and 2028 by 4% and 8% respectively, while keeping the 2026 forecast largely unchanged. The target price has been lowered from HK$32.20 to HK$30.40, maintaining a "Neutral" rating. The current share price corresponds to a 2027 P/E ratio of 19x, approximately 0.6 standard deviations below the historical average of 22x. The share price has already fallen 33% this year, and the market has already priced in short-term pressures from rising memory prices and component shortages. UBS believes the current valuation is reasonable, but short-term catalysts are predominantly negative. (UBS Report, September 22)