CLSA has issued a research report stating that Knowledge Atlas (02513) plans to place 19.78 million H shares at a price of HK$1,588 per share, raising approximately HK$31.4 billion.

The firm believes this placement will significantly strengthen the company's financial position, supporting the expansion of its inference services scale and growth in annual recurring revenue.

Leveraging its scalable API business and margin improvements from inference engine upgrades, the company is expected to achieve breakeven a year earlier, by 2028.

CLSA has raised its revenue forecasts for Knowledge Atlas for 2026 and 2027 by 43% and 65%, respectively.

Consequently, the firm has increased its price target from HK$1,500 to HK$2,061 and upgraded its rating to Outperform.