Macquarie has released a research report, initiating coverage on Hong Kong-listed ILUVATAR COREX (09903) with an "Outperform" investment rating and a target price of HK$1240.

The report identifies the company as a leading domestic enterprise in the field of general-purpose GPUs (GPGPU), possessing the longest development history in this sector within China.

Supported by a diverse product portfolio and a mature supply chain, the company has established itself as a strong competitor for market share in the domestic AI chip arena.

The analysis further highlights that the company's relatively extensive industry experience in GPGPU chip design and its established supply chain system form its core differentiating advantages, granting it higher operational efficiency and greater earnings predictability compared to peers.

Regarding financial projections, Macquarie anticipates the company will maintain robust revenue growth momentum, forecasting a compound annual growth rate of 120% from 2025 to 2028, with revenue expected to exceed 11 billion yuan by 2028.

On the profitability front, driven by increasing revenue scale and product mix upgrades, the company is projected to achieve a turnaround to profitability by 2027, marking the beginning of its earnings realization phase.