With a subscription multiple of nearly 300 times and frozen funds exceeding one hundred billion Hong Kong dollars, coupled with a significant surge in the grey market, why is this domestic general-purpose GPU leader, ILUVATAR COREX (09903), so favored by investors? ILUVATAR COREX (09903) completed its bookbuilding on January 5th, attracting a frenzy of investor subscriptions. According to Futu data, the oversubscription rate exceeded 300 times, with total application amounts surpassing HKD 100 billion. The final offer price was set at HKD 144.6, raising approximately HKD 3.7 billion and giving the company an IPO market capitalization of HKD 35.442 billion. During the grey market session, the company's stock price rose sharply, with intraday gains once exceeding 49%, reflecting intense market enthusiasm.
Even prior to its listing, the company garnered significant institutional optimism, securing investments from prominent firms such as Centurium Capital, Princeville Capital, Xinnake Capital, Sequoia Capital China, and Yuanhe Fund. This listing also introduced a cornerstone investor team composed of 18 top-tier investment institutions, including ZTE (Hong Kong), UBS AM Singapore, Teamsun (Hong Kong), 4Paradigm, AnQing International, China Universal Asset Management (Hong Kong), ChinaAMC (Hong Kong), Xinxin Capital Holding, and Mingshan Capital. This powerful and diverse shareholder matrix provides a strong foundation for the company's rapid development.
ILUVATAR COREX is an innovation leader in the domestic general-purpose GPU sector, demonstrating robust performance growth. From 2022 to 2024, the company's revenue achieved a compound annual growth rate of 68.8%, and it continued its strong momentum with a 64.2% increase in the first half of 2025. This success stems from two key dimensions: first, formidable R&D capabilities with full-stack in-house development, which have built a core competitive barrier; second, exceptional commercial deployment capabilities, centered on user needs and focused on multi-scenario applications to achieve scaled delivery.
Examining the first dimension, from 2022 to the first half of 2025, the company's R&D expenditures were RMB 457 million, RMB 616 million, RMB 772.8 million, and RMB 334 million, accounting for 241.1%, 213.1%, 143.2%, and 139.2% of its revenue, respectively. The outcomes of this R&D investment are significant, with the iteration cycles for its two major product series, Tiange and Zhikai, continuously shortening. Notably, the Tiange series launched its third generation, Gen 3, in 2024, featuring enhanced computing performance, compatibility, and scenario adaptability. The Tiange series is the first mass-produced general-purpose GPU product in China, specifically designed for AI model training, while the Zhikai series, as China's first inference-specific general-purpose GPU product, strengthens integer computing units and optimizes data pathways. Together, these two product lines provide full-chain coverage from complex model development to efficient production deployment in AI computing. Furthermore, the company's self-developed proprietary software stack maximizes the performance potential of its hardware.
Looking at the second dimension, ILUVATAR COREX adopts a user-centric approach, implementing a dual-track model of "Product + Solution" to meet the diverse needs of customers across different scenarios. On one hand, it works through various channels to improve product yield, optimize the supply chain, strengthen scenario adaptation, and refine the toolchain, ensuring that domestic general-purpose GPUs are not only usable but also easy and desirable for users to adopt actively. On the other hand, through deep collaboration with clients, the company designs and implements tailored deployment solutions, thereby enhancing user satisfaction. Its client base spans multiple industry scenarios, including financial services, healthcare, transportation, manufacturing, and retail. The number of customers has increased more than eightfold over the past three years, and as of June 2025, its products have been deployed over 900 times across more than 290 clients. Product shipments have shown a doubling trend, growing from 7,800 units in 2022 to 16,800 units in 2024, and reaching 15,700 units in just the first half of 2025.
ILUVATAR COREX operates in a highly fertile industry landscape for growth. According to Frost & Sullivan, China's AI chip market grew at a compound annual rate of 80.3% from 2022 to 2024 and is projected to reach RMB 898.1 billion by 2029. Meanwhile, the market share of domestic general-purpose GPUs continues to rise, increasing from 8.3% in 2022 to 17.4% in 2024, with expectations to exceed 50% by 2029. The company holds a leadership position within this industry; based on 2024 revenue statistics, ILUVATAR COREX's training and inference general-purpose GPU products both rank within the top three in terms of market share for their respective product types domestically.
The net proceeds from this listing amount to HKD 3.479 billion, of which 80% will be allocated to research and development for its products and solutions. This includes 50% earmarked for the R&D and commercialization of its general-purpose GPU chips and accelerator cards over the next five years, and 30% dedicated to expanding its R&D team for the same purpose. Based on the projected doubling of product shipments in 2025 and the accelerating pace of commercialization, the company's market share is expected to increase further, solidifying its leading position.
From a valuation perspective, ILUVATAR COREX possesses long-term investment value. Firstly, its current market valuation is not high; if projected based on the industry's growth rate, the company's revenue is expected to exceed ten billion yuan within the next five years, resulting in a price-to-sales (P/S) ratio calculation of less than 4x. This appears significantly undervalued when compared to the P/S ratios of dozens for industry leaders in their respective AI fields, such as NVIDIA and Cambricon. Furthermore, considering its ecosystem value, the company's full-stack in-house development of both hardware and software builds a comprehensive domestic ecosystem, unlocking further potential for future growth. As a domestic general-purpose GPU leader, it also holds a稀缺 position within the Hong Kong stock market. Valuation drivers such as the wave of AI development and domestic substitution are expected to continue fueling investment interest in the company. The listing is merely a starting point; with its current valuation at a low level, it may represent an opportunity for long-term investors to get on board.
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