On September 3, ILUVATAR COREX rose 5% in regular trading, trading at HK$386.6/share, with turnover of HK$15.64 million. The stock rebounded sharply after a two-day selloff, driven by imminent passive fund inflows ahead of its Hang Seng TECH Index inclusion.

The company is confirmed to be officially included in the Hang Seng TECH Index effective September 7, making it the first and currently the only GPU company in the index. Institutional estimates project approximately HK$690 million in net passive fund inflows from the adjustment, with the majority of passive funds expected to concentrate rebalancing activity in the one to two trading days prior to the effective date — placing the stock squarely in the rebalancing window.

However, earnings quality concerns linger. The company reported H1 revenue of RMB 946 million, up 191.6% year-over-year, with net profit of RMB 106 million marking a turnaround from losses. Gross margin fell sharply from 50.1% to 17.2%, attributed to below-cost component sales and inventory write-downs. Operating cash flow widened to negative RMB 2.786 billion. Analysts maintain a cautious stance on near-term profitability despite recognizing the company's scaled delivery capabilities as a key competitive advantage.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)