Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company has shown a significant acceleration in the commercialization of its physical AI products, with expected revenue from these products reaching 30 million in 2025 and 50 million in 2026 [7] - The company reported a total revenue of 57.35 million in H1 2025, reflecting a year-on-year growth of 10.8%, and a narrowed net loss of 45.7 million compared to a loss of 66.43 million in the same period last year [7] - The company is focusing on two main product lines: "Tiangong" for traditional CAE software and "Kaimu" for physical AI-related products, with the latter generating 3.75 million in revenue in H1 2025 [7] Financial Data and Profit Forecast - Total revenue projections are as follows: 604 million for 2025, 850 million for 2026, and 1,105 million for 2027, with corresponding year-on-year growth rates of 59.5%, 40.7%, and 30.0% respectively [6] - The forecasted net profit for 2025 is 81 million, with a significant increase of 96.2% compared to the previous year, followed by 120 million in 2026 and 160 million in 2027 [6] - The company’s gross margin is expected to remain strong, with estimates of 72.4% in 2025, 73.9% in 2026, and 74.2% in 2027 [6] Market Position and Competitive Advantage - The company is leveraging its advanced physical AI capabilities to expand into various simulation scenarios, including lightning warning systems and wind power design efficiency optimization [7] - The development of a low-altitude three-dimensional map for real-time navigation and simulation training is expected to enhance the company's market position, with a contract already signed with Hangzhou Industrial Investment Group [7] - The company emphasizes its advantage in physical solving capabilities, positioning itself well in the emerging trend of physical AI commercialization [7]