Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][5]. Core Insights - The company specializes in engine exhaust after-treatment products, including diesel and gasoline engine purification products, and is gradually expanding into AI medical services and smart computing [8][57]. - The company is expected to see significant growth in its net profit from 2025 to 2027, with projections of 0.89 billion, 1.68 billion, and 2.82 billion respectively, corresponding to PE ratios of 61, 33, and 20 [5][61]. - The report highlights the company's strong market position in the light-duty diesel engine after-treatment sector and its efforts to penetrate the gasoline engine market, alongside a notable expansion in its marine business [5][32]. Summary by Sections Overview - The company focuses on engine exhaust after-treatment, with a gradual increase in gross margin [8]. Automotive Sector - Over 80% of global automotive sales require exhaust treatment devices, indicating a vast market potential. By 2025, global automotive sales are projected to reach 96.47 million units, with traditional fuel vehicles accounting for 84.36% [14][16]. - The company is actively expanding its overseas market presence, which is expected to contribute to profit growth [16] Marine Sector - The global new shipbuilding market is thriving, with China leading in market share. By 2025, China is expected to complete 53.69 million deadweight tons of shipbuilding, accounting for 56.1% of the global total [40][46]. - The demand for exhaust treatment devices remains robust, as over 73% of ordered ships are expected to use traditional fuels [40][46]. Smart Business - The company is focusing on smart computing and AI medical services, having launched a computing power leasing platform in collaboration with Shanghai Yizhi [57]. - The partnership with AI medical leader Aikangwei aims to enhance digital transformation in the healthcare sector, with the medical industry being a significant area for AI application [57][58]. Investment Recommendations - The report suggests that the company's PE is below the average of comparable companies, reinforcing the "Buy" rating [5][61].

Group 1 - DeepSeek, an AI unicorn, is set to initiate its IPO process on the Beijing Stock Exchange in November 2025, with a focus on computing power leasing as its core strategy for the next five years [1] - The company plans to invest 3 billion yuan in building a self-controlled high-performance computing (HPC) center and collaborate with domestic chip manufacturers to create customized AI computing power solutions [1] - DeepSeek has established strategic partnerships with domestic chip companies such as Huawei Ascend and Cambricon, aiming to support high computing power demand scenarios like large model training and autonomous driving simulation [3] Group 2 - Industry experts indicate that DeepSeek's listing will accelerate the localization of AI computing infrastructure in China and is expected to capture over 35% of the domestic market share within the next 3-5 years [3]