HK Stock Market Move | ILUVATAR COREX(09903)rose more than 6%, high-performance GPU enters a rapid growth cycle,Company DeepSpark ecosystem demonstrates core competitiveness

ILUVATAR COREX (09903) rose more than 6%, as of the time of publication, it rose 6.71%, to 474 Hong Kong dollars, with a turnover of 161 million Hong Kong dollars. On the news front, according to Frost & Sullivan data, the Chinese AI chip market is expected to grow from 142.5 billion yuan in 2024 to 13.4 trillion yuan in 2029. In terms of the sub-markets, the GPU market is expected to grow the fastest, with its market share projected to rise from 69.9% in 2024 to 77.3% in 2029. Huachuang Securities believes that with multiple drivers such as national policy support, explosive demand for computing power, global supply chain restructuring, and accelerated self-controllable development, the high-performance GPU industry is entering a rapid growth period, and domestic manufacturers in China are welcoming broad development opportunities in the trend towards self-sufficiency in computing power. According to a research report by Haitong International, as a pioneer in the Chinese dual-line GPU field, ILUVATAR COREX's DeepSpark ecosystem demonstrates core competitiveness, and its current stock price has a significant discount relative to its potential valuation. The bank points out that the company's revenue doubled year-on-year to 1.034 billion yuan last year, and is expected to increase by 126% and 133% in the next two years, driven by rising sales prices of TG Gen 3 and production volumes of ZhiKai (ZK). The company will join the Hong Kong stock connect on June 8, serving as a short-term revaluation catalyst. As a scarce domestic GPU Hong Kong stock, the company's current stock price is equivalent to a forecasted P/S ratio of 20 times next year, lower than the average of A-share peers (such as Cambricon, Moore Thread, etc.) of around 56 times.