Investment Rating - The investment rating for the company is "Buy-A" with a 6-month target price of 104.16 CNY, while the stock price as of July 28, 2025, is 88.29 CNY [5][14]. Core Insights - The company is a leading player in the field of physical AI, having launched several innovative products and platforms aimed at various applications, including virtual training and low-altitude economy [1][4][12]. - The company has established strategic partnerships, such as with Hangshi Group, to enhance the integration of low-altitude economy and virtual training technologies [1]. - The company is expected to achieve revenue growth from 5.15 billion CNY in 2025 to 9.21 billion CNY in 2027, with net profits projected to rise from 0.79 billion CNY to 1.42 billion CNY during the same period [14]. Summary by Sections Company Overview - The company hosted a forum on physical AI at the World Artificial Intelligence Conference, showcasing its leadership in the field and announcing four major innovations [1]. - The company has developed a comprehensive physical AI platform that includes various core technologies for simulation and training [2][3]. Product and Technology Development - Key technologies include integrated generative modeling and simulation, real-time physical AI computing engines, and intelligent environmental perception technologies [3]. - The company has launched a physical AI platform that supports various applications, including a low-altitude three-dimensional physical map to enhance the safety of low-altitude flying vehicles [12][13]. Financial Performance and Projections - The company’s revenue is projected to grow significantly, with a compound annual growth rate (CAGR) of 17.6% from 2025 to 2027 [16]. - The net profit margin is expected to stabilize around 15.5% by 2027, indicating improved profitability [16]. Market Position and Strategy - The company is positioned as a leading CAE software provider, expanding its business into renewable energy, low-altitude economy, and robotics through strategic acquisitions [14]. - The company aims to leverage its physical AI platform to create new growth opportunities and enhance its market presence [14].

Investment Rating - The investment rating for the company is "Buy" [6] Core Views - The company officially launched physical AI products such as embodied intelligent virtual training and low-altitude three-dimensional physical maps at the 2025 World Artificial Intelligence Conference, accelerating the commercialization process of physical AI [6] - The embodied intelligent virtual training solution achieves two levels: intelligent agent training and autonomous perception [6] - The low-altitude three-dimensional map enables simulation training and real-time navigation, creating a digital twin of urban low-altitude environments [6] - The company emphasizes its competitive advantage in physical solving capabilities, maintaining a "Buy" rating and projecting revenue of 600 million, 850 million, and 1.105 billion yuan for 2025, 2026, and 2027 respectively [6] Financial Data and Profit Forecast - Total revenue forecast for 2025 is 604 million yuan, with a year-on-year growth rate of 59.5% [2] - Net profit attributable to the parent company is projected to be 81 million yuan in 2025, with a year-on-year growth rate of 96.2% [2] - Earnings per share for 2025 is estimated at 0.91 yuan [2] - Gross margin is expected to be 72.4% in 2025 [2] - Return on equity (ROE) is projected to be 2.8% in 2025 [2] Market Data - The closing price of the stock is 90.01 yuan as of July 25, 2025 [3] - The stock has a price-to-book ratio of 2.8 and a dividend yield of 0.27% [3] - The circulating A-share market value is 4,432 million yuan [3]