Shares of BIREN TECH (06082) opened nearly 5% higher in Hong Kong trading, rising 4.73% to HK$35.46 as of the time of writing, with turnover reaching HK$6.82 million.

Market reports recently emerged suggesting that the company was planning to raise approximately $1 billion in funding. However, Daiwa noted that BIREN TECH has officially denied these placement rumors.

Daiwa maintains a positive outlook on the company's earnings prospects for 2027-2028, driven by the launch of its flagship chip and its local manufacturing strategy. The brokerage believes that BIREN TECH will secure production capacity support from high-bandwidth memory (HBM) suppliers, which would serve as a competitive advantage given the severe HBM shortage currently affecting China.

Additionally, Daiwa anticipates that BIREN TECH's next-generation flagship product, the BR20x, is currently in its final phase of parameter calibration, debugging, and validation. Following the completion of final validation, the BR20x is expected to be sent to cloud service providers for testing. The firm looks forward to positive launch results in the near term.