Haithong International has issued a research report stating that Knowledge Atlas (ASX: 02513) has recently demonstrated an acceleration in its annual recurring revenue (ARR) growth, providing further evidence of its core capabilities and model iteration performance.

Haithong International has raised the target price for Knowledge Atlas from HK$1,200 to HK$2,300, which corresponds to a forecasted price-to-sales ratio of 30 times for 2027, and reaffirmed its 'Outperform' rating.

Founder Tang Jie announced the launch of a two-year 'Touch High' initiative in an internal letter. The company will temporarily defer short-term commercialization efforts on the application side to concentrate resources on advancing fundamental research and development for technologies required for Artificial General Intelligence (AGI). This move sends a strong signal to investors that management is focused on enhancing long-term model capabilities.

The report indicates that according to IDC's 2026 enterprise user survey data, only 18% of Chinese enterprises have integrated AI agents into their core business processes, showing that enterprise adoption of AI is still in its early stages, with actual budget penetration remaining extremely low.

While recent market developments have seen the launch of models such as Kimi K3, Qwen 3.8, and DeepSeek V4, it is anticipated that Knowledge Atlas will continue to expand its model capabilities in the coming months, with no significant concerns regarding zero-sum competition.