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Haitong International Initiates ILUVATAR COREX (09903.HK) at Outperform with TP HKD596.7
Recommend 12 Positive 11 Negative 8 |
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Haitong International issued a report initiating coverage on ILUVATAR COREX (09903.HK) with an Outperform rating and a target price of HKD596.7, equivalent to a forecast next-year price-to-sales multiple of 24x. The broker noted that, as a pioneer in Chinas dual-track GPU sector, ILUVATAR COREXs DeepSpark ecosystem demonstrates core competitiveness, while the current share price represents a significant discount to its potential valuation. The companys revenue doubled YoY last year to RMB1.034 billion. Revenue is projected to increase by 126% and 133% respectively over the next two years, driven by a higher average selling price of TG Gen 3 and increased production volume of Zhikai (ZK). The operating loss margin is expected to narrow from negative 95% last year to negative 28% this year. Supported by operating leverage, the company is forecast to turn profitable next year with net profit of RMB847 million. The company will be included in Southbound Stock Connect on June 8, serving as a short-term re-rating catalyst. As a scarce Hong Kong-listed domestic GPU play, the company allows investors to gain exposure to Chinas AI computing market without facing the valuation premium of A shares. The current share price implies a forecast next-year price-to-sales multiple of 20x, lower than the average of about 56x for A-share peers such as Cambricon and Moore Threads. (da/u) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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