CMB International: Initiate coverage of KNOWLEDGE ATLAS (02513) with a "buy" rating and a target price of 1503.9 Hong Kong dollars.

China Merchants International released a research report stating that it has initiated coverage on KNOWLEDGE ATLAS (02513) with a "buy" investment rating and a target price of 1503.9 Hong Kong dollars. KNOWLEDGE ATLAS is one of China's leading independent developers of large language models, with full capabilities in covering basic model pre-training and fine-tuning, enterprise deployment, and application development. According to Frost & Sullivan data, based on revenue in 2024, the company ranks first among independent large model developers in China and second among all large model developers, with a market share of 6.6%. The firm is bullish on KNOWLEDGE ATLAS mainly because: 1) its leading edge model capabilities, and the ability to continuously iterate based on profound research strength; 2) its strategic foresight in accurately grasping commercialization scenarios, which is expected to capture market opportunities that have not been fully realized; 3) its extensive base of institutional clients and ability to provide customized solutions. According to F&S projections, the revenue of the Chinese LLM industry is expected to grow from 5.3 billion Chinese yuan in 2024 to 101.1 billion Chinese yuan in 2030, with a CAGR of 63.5%. The firm believes that KNOWLEDGE ATLAS is one of the independent large model developers most likely to seize the market opportunities mentioned above.