China has entered a new phase of exporting artificial intelligence-related hardware, creating “globally relevant export winners,” Goldman Sachs analysts said. Its analysis found companies with market opportunities ranging from $12 billion to $212 billion by 2030. With growing uncertainty around U.S. restrictions on high-tech imports from China, many exporters are instead expanding into Europe and Southeast Asia. And while many companies fit into clear categories such as filling overseas product shortages, Goldman recently noted industrial automation and robotics as two opportunities where execution of corporate strategy matters more than macroeconomic trends. “Strong product/tech competitiveness, R & D iteration speed and cost competitiveness still position them as potential long-term winners,” the Goldman analysts said of the companies. Their preferred picks in the category are Hong Kong-listed industrial robotics company Estun , and Shenzhen-listed automation company Inovance . “Europe is Inovance’s most strategic overseas market,” the analysts said, noting the company’s total addressable market outside China in 2030 could more than triple from the current $163 billion. Goldman rates Inovance a “buy,” with a price target of 92.90 yuan ($13.78), implying upside of more than 50% compared to Friday’s close. Estun benefits from expansion in Southeast Asia alongside its Chinese manufacturing customers, the Goldman analysts said. The Wall Street powerhouse estimates the company’s market share in the region to more than triple by 2030, to around 10%, up from 3% this year. That’s against estimates of a total addressable market outside China of $20 billion. “While Estun remains at an early stage of overseas expansion and continues to lag global peers in service coverage, and software/ecosystem, its fast deployment position[s] it as one of the competitive players,” in Southeast Asia, a recent report said. For now, the analysts are “neutral” on Estun, giving it a price target of 11.80 Hong Kong dollars ($1.50). China is scheduled to host the World Robot Conference in Beijing from Aug. 19 to 23.
Goldman picks China stocks poised to benefit from wave of AI-related exports
