Goldman Sachs has issued a research report indicating that SENSETIME-W's (00020) profit alert forecasts a net profit between RMB 500 million and RMB 700 million for the interim period, marking a turnaround to profitability. The investment bank has consequently raised its target price from HK$2.00 to HK$2.05.

Management attributes the improved performance to enhanced operational efficiency driven by cost management and productivity gains, along with higher-than-anticipated non-operating income. Goldman Sachs views SENSETIME-W as a comprehensive solution provider spanning computing power, AI models, and applications, and expects the company to continue expanding its generative AI product coverage.

In response to the updated outlook, the bank has revised its earnings forecasts upward for the 2028 to 2032 period by 13%, 5%, 2%, 2%, and 1% respectively, while keeping revenue and gross margin projections largely unchanged. The firm believes SENSETIME-W's AI models are progressing toward "Delegated Intelligence," a phase where users will focus on the delivery of AI-generated outputs, which could facilitate large-scale commercialization.