CLSA has issued a research report initiating coverage on KNOWLEDGE ATLAS (02513) with a 'Hold' rating, citing elevated valuation as a key factor, with a 12-month target price of HK$1,500.

The firm's analysis points to the company's forecasted price-to-sales ratio of 57 times for the 2027 fiscal year as a significant valuation concern.

The report highlights that KNOWLEDGE ATLAS AI is a leading foundational model laboratory in China, demonstrating a successful track record of converting cutting-edge research into enterprise revenue based on token usage.

CLSA projects that, supported by its robust talent pool, enterprise client base, and data flywheel effect, the company is well-positioned to capture value in the AI model layer over the coming decade.