Goldman Sachs has identified a new phase in China's export strategy, particularly in artificial intelligence-related hardware, which could yield market opportunities between $12 billion and $212 billion by 2030. As U.S. restrictions on high-tech imports from China create uncertainty, many Chinese exporters are pivoting towards markets in Europe and Southeast Asia.
The analysts emphasize that in sectors like industrial automation and robotics, the execution of corporate strategy is crucial, often outweighing broader economic trends. They specifically recommend Hong Kong-listed Estun and Shenzhen-listed Inovance as key players.
Inovance is noted for its strategic focus on Europe, with a potential market outside China that could grow from $163 billion to over triple that by 2030. Goldman Sachs rates Inovance a 'buy' with a price target of 92.90 yuan ($13.78), suggesting over 50% upside from its recent trading price.
Estun, while still in the early stages of international expansion, is expected to increase its market share in Southeast Asia significantly, from 3% to around 10% by 2030, with a total addressable market of $20 billion. However, Goldman Sachs maintains a 'neutral' stance on Estun, setting a price target of 11.80 Hong Kong dollars ($1.50).
The upcoming World Robot Conference in Beijing is expected to further highlight China's advancements in this sector