In major news on Hong Kong stocks, SenseTime Group, Inc. (HK:0020) (HK:80020) was shaken after the company announced a discounted placement plan for its shares. SenseTime shares opened 5% lower in today’s trading session but later recovered to a gain of 0.76% as of writing. With the placement, the company intends to raise gross proceeds of around HK$2 billion to support its ongoing development and business growth.
Based in Hong Kong, SenseTime is an artificial intelligence (AI) company developing advanced AI technologies.
More Details on SenseTime’s Placement Offer
SenseTime offered 1.67 billion shares at HK$1.20 per share. The offer price represents a 9.1% discount on Thursday’s closing price of SenseTime stock. The net proceeds from the placement after costs will be HK$1.99 billion.
SenseTime stated that the proceeds will primarily be used to expand the company’s industry AI infrastructure, SenseCore. Additionally, the funds will support research and development of its generative AI models and other general working capital needs.
Leading the AI Boom
Lately, SenseTime’s generative AI business has been gaining traction amid the ongoing AI boom in the market. As a result, the company is targeting profitability within the next two years. In 2023, the company’s generative AI business revenue of RMB 1.2 billion experienced remarkable year-on-year growth of 200%, accounting for over 35% of the company’s total revenue. Looking ahead, the company aims for 100% growth in its Generative AI business in 2024.
Earlier in April, SenseTime shares gained around 30% on a single trading day after the company launched its new generative AI model, SenseNova 5.0.
What is the Price Prediction for SenseTime Stock?
As per the consensus rating on TipRanks, 0020 stock has received a Moderate Buy rating, supported by two Buy recommendations. The SenseTime share price forecast stands at HK$1.63, signifying a potential upside of 23.5% on the current level.
