Assessing Knowledge Atlas Technology (SEHK:2513) Valuation After A 20.61% One Day Share Price Jump

Event context and why Knowledge Atlas Technology is drawing attention

Knowledge Atlas Technology (SEHK:2513) caught investor attention after a single day return of 20.6%, with the move also shaping its year to date performance and prompting closer scrutiny of its AI focused business model.

See our latest analysis for Knowledge Atlas Technology.

The HK$158.6 share price and 1 day share price return of 20.61%, which is also the year-to-date share price return, suggest short-term momentum is building as investors reassess the company’s AI products and risk profile.

If this AI-driven move has caught your eye, it could be a good moment to see what else is gaining interest among high growth tech and AI stocks.

With a HK$158.6 share price, a 20.61% one day jump and losses alongside relatively modest revenue, the key question now is simple: are you seeing an early opportunity, or is the market already pricing in future growth?

Price-to-book of -10.2x: Is it justified?

Knowledge Atlas Technology is trading on a P/B of 10.2x in absolute terms, but because shareholder equity is negative that figure is less straightforward to read than a typical multiple and raises a flag at the HK$158.6 share price.

P/B usually compares a company’s market value to the net assets on its balance sheet. This is often a useful yardstick for asset backed or mature software businesses. Here, liabilities exceed assets, so the book value is below zero and the P/B ratio signal becomes distorted.

Negative equity, combined with losses and less than one year of cash runway, suggests the balance sheet is carrying a heavier burden than investors might see in many Hong Kong software peers. Rather than pointing to a cheap or expensive multiple in the usual way, the P/B outcome mainly underlines that the current valuation rests more on expectations for the AI product suite than on present net asset strength.

Compared with both direct peers and the wider Hong Kong Software industry, where average P/B ratios are 5.9x and 2.6x respectively, Knowledge Atlas Technology sits in a very different position because of that negative equity. The gap is not just wide; it also reflects a fundamentally different balance sheet structure that investors need to understand before using book value comparisons.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-book of -10.2x (ABOUT RIGHT)

However, you are still looking at a business with HK$458.382 revenue against a HK$1,799.742 loss and less than one year of cash runway, so funding and execution risks remain front of mind.

Find out about the key risks to this Knowledge Atlas Technology narrative.

Build Your Own Knowledge Atlas Technology Narrative

If you see the numbers differently or prefer to test your own assumptions against the data, you can build a custom view in minutes by starting with Do it your way.

A great starting point for your Knowledge Atlas Technology research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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