Black Sesame International May Face Challenges in Achieving Economies of Scale -- Market Talk
Dow Jones
Sep 02
0649 GMT - Black Sesame International may face challenges in achieving economies of scale, Bernstein analysts write in a note, and see operating profit break-even delayed beyond 2030. The chip developer's reliance on a hardware-only approach diminishes its competitiveness, they say. Without enough investment in software infrastructure, it is difficult for a third-party smart driving algorithm to be deployed on the ecosystem, they say. The company may need to develop larger chips to deliver the same output, which would raise the costs, they add. Bernstein initiates an underperform rating for the stock at a target price of HK$16. Shares last at HK$17.99.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
September 02, 2025 02:49 ET (06:49 GMT)
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