Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company reported a steady revenue growth in Q3 2025, with total revenue reaching 106 million yuan, a year-on-year increase of 27.8%. However, the net loss attributable to shareholders was 75.95 million yuan, slightly widening compared to the previous year [7] - The first contract for the physical AI product has been awarded, marking the beginning of revenue generation from this segment. The company won a project worth 30.96 million yuan in October 2025 [7] - The company is actively pursuing mergers and acquisitions to enhance its core industrial software capabilities, with significant cash reserves available for future deals [7] - There is a clear demand for high-precision technology scenarios, particularly in simulation capabilities, which the company's physical AI technology can address [7] - The company is developing a virtual training solution for robotics, which includes real-time multi-physics simulations and adaptive intelligent agents [7] - A three-dimensional low-altitude map is being constructed to facilitate simulation training and real-time navigation, enhancing urban low-altitude environment management [7] - The report emphasizes the company's competitive advantage in physical solving capabilities and maintains the "Buy" rating, projecting revenues of 604 million, 850 million, and 1.105 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 81 million, 120 million, and 160 million yuan [7] Financial Data and Profit Forecast - Total revenue for 2025 is projected at 604 million yuan, with a year-on-year growth rate of 59.5%. The net profit attributable to shareholders is expected to be 81 million yuan, reflecting a growth rate of 96.2% [6] - The gross margin is forecasted to be 72.4% for 2025, with a return on equity (ROE) of 2.8% [6] - The company anticipates achieving a net profit of 160 million yuan by 2027, with a corresponding ROE of 5.0% [6]

Core Viewpoint - The company, Suochen Technology, is advancing its physical AI products and is in the process of acquiring a leading domestic SCD (Software for Control and Data) company, Likong Technology, to enhance its capabilities in the industrial software sector [2][4]. Group 1: Company Performance - As of September 12, 2025, Suochen Technology's stock closed at 96.89 yuan, up 2.28% from the previous week [1]. - The company's total market capitalization is 8.674 billion yuan, ranking 58th out of 133 in the software development sector and 2140th out of 5153 in the A-share market [1]. Group 2: Product Development - The company's physical AI product line includes a comprehensive development and application platform, which allows developers and industrial users to easily create and deploy physical AI applications [2]. - The physical AI platform features various core functionalities such as generative modeling simulation technology, real-time environment rendering, and a physical AI simulation engine [2][4]. Group 3: Market Opportunities - The physical AI platform addresses safety challenges in the low-altitude economy by providing high-fidelity simulations and real-time data integration, which are essential for the safe development of low-altitude operations [3][4]. - The company has identified significant potential in the low-altitude economy, particularly in optimizing flight paths and supporting the development of unmanned traffic management (UTM) systems [3][4]. Group 4: Acquisition of Likong Technology - The acquisition of Likong Technology is progressing smoothly, with the company being a leading player in the domestic SCD industry, focusing on smart manufacturing and data monitoring solutions [3][4]. - Likong Technology has a strong market presence and technical capabilities, having been a pioneer in the SCD software field and achieving significant penetration in various industrial sectors [3][4].

Core Viewpoint - The company, Suochen Technology (688507.SH), has stated that it will fulfill its information disclosure obligations regarding the revenue from its physical AI product category, and specific information will be provided in company announcements [1] Group 1 - The company has not yet established cooperation with Yushu Technology and Ubtech [1]

Group 1 - The core viewpoint of the article highlights that Suochen Technology (688507.SH) leverages its self-controlled CAE products and physical AI products to enhance military information technology in various aspects [1] - The company's capabilities include improving simulation accuracy and real-time operational control, which aids in achieving data simulation in virtual environments [1] - Additionally, the company utilizes virtual data for real-time operational control in real environments [1]