Event & Technology Focus - NVIDIA AI research leaders will discuss the next frontier in computer graphics and physical AI at SIGGRAPH 2025 [1] - The event will highlight physical AI and NVIDIA Omniverse [1]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The integration of Aisino's self-developed digital twin platform with NVIDIA Omniverse aims to empower the domestic manufacturing sector's transition from "manufacturing" to "intelligent manufacturing" [4] - NVIDIA Omniverse is an open platform designed for virtual collaboration and real-time simulation, with significant market potential, already adopted by over 700 companies and more than 70,000 individual creators [5] - The expansion of Omniverse usage is expected to create three industry opportunities, particularly benefiting the simulation market, computational power, delivery, and enterprise sectors [6][7] Summary by Sections Industry Trends - The report highlights the ongoing demand for computational power driven by sovereign AI and token consumption, indicating a sustained need for traditional AI targets [3] Company Focus - Aisino Technology is positioned to extend its delivery capabilities from large models and AI agents to AI platform delivery, with potential applications in various sectors including energy, finance, and manufacturing [7] - The report notes that Omniverse could enhance efficiency in downstream manufacturing, exemplified by Foxconn's production line layout cycle being shortened by 50% [8] Market Opportunities - The report emphasizes the potential for domestic simulation market demand to grow, with local alternatives like Songying Technology's ORCA system emerging to compete with Omniverse, offering localized and cost-effective solutions [8]

Group 1 - The core viewpoint is that AsiaInfo Technology is integrating its self-developed digital twin platform AISWare Digital Gemini and other platforms with NVIDIA Omniverse to facilitate the transformation of domestic manufacturing from "manufacturing" to "intelligent manufacturing" [1] - AsiaInfo's digital twin platform is a versatile application development tool that integrates various technologies such as big data, IoT, GIS, 3D, and AI to provide comprehensive support for multiple scenarios including network, industrial manufacturing, and urban governance [1] - The integration with NVIDIA Omniverse allows developers to incorporate advanced rendering and simulation technologies into industrial software tools, enhancing the capabilities of the digital twin platform [1] Group 2 - The accelerated delivery of large model applications is enabling AI to be implemented in industrial scenarios, allowing clients to construct virtual environments for training and planning real-world production activities [2] - AsiaInfo has assisted several manufacturing enterprises in utilizing large models for predictive maintenance and automated production scheduling, indicating a strong market presence [2] - AsiaInfo ranks among the top six large model application delivery suppliers in China, recognized for its capabilities across seven key areas including consulting, infrastructure, and operational management [2] Group 3 - AsiaInfo Technology is a leading provider of comprehensive digital intelligence capabilities in China, with a strong background in critical information infrastructure [3] - The company is focusing on three growth engines: AI large model applications, 5G private networks, and digital operations, which are expected to drive future growth [3] - Projected net profits for AsiaInfo from 2025 to 2027 are estimated at 453 million, 706 million, and 820 million yuan, with corresponding growth rates of -17%, 56%, and 16% [3]

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Insights - The company is integrating its self-developed digital twin platform, AISWare Digital Gemini, with NVIDIA Omniverse to enhance its product capabilities in the AI era, aiming to transform domestic manufacturing from "manufacturing" to "intelligent manufacturing" [1][2] - The digital twin platform has been recognized across various fields, having won international awards and passed evaluations for low-code platforms, indicating its leading position in the domestic digital twin sector [2] - The integration with NVIDIA Omniverse is expected to elevate the company's digital twin platform, creating a new industrial ecosystem centered around physical AI, which will provide comprehensive solutions for industries such as manufacturing and energy [2] - The company has accelerated its layout in AI large model delivery since 2023, successfully delivering over 30 large model projects in various sectors, with total order values exceeding 50 million yuan [3] - The financial forecast estimates the company's revenue for 2025-2027 to be 6.915 billion, 7.461 billion, and 8.269 billion yuan, respectively, with net profits projected at 571 million, 674 million, and 777 million yuan [4][10] Summary by Sections Digital Twin Platform - The AISWare Digital Gemini platform serves as a crucial part of the company's IT product system, enabling users to design and operate various digital twin applications across multiple sectors [2] - The platform has been successfully implemented in smart parks, digital villages, and event communication support, showcasing its practical applications [2] Integration with NVIDIA Omniverse - The collaboration with NVIDIA Omniverse aims to leverage synthetic data for training robots, facilitating a seamless transition from virtual to real-world industrial tasks [2] - This integration is anticipated to create a closed-loop solution for industries, enhancing the company's technological foundation and industrial value [2] AI Large Model Delivery - The company has made significant strides in AI large model delivery, with a comprehensive approach covering demand analysis, consulting, product development, implementation, and operational maintenance [3] - The successful application of large models in various manufacturing scenarios is expected to accelerate AI adoption in the industry [3] Financial Projections - The report maintains previous profit forecasts, with expected revenue growth and net profit increases over the next three years [4][10]

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [3] Core Insights - The company has integrated its self-developed digital twin platform, AISWare Digital Gemini, with NVIDIA Omniverse to empower the digital transformation of the manufacturing industry [1][7] - The company is recognized as one of the top six "large model application delivery suppliers" in China, showcasing its capabilities across various sectors [7] - The company aims to enhance its AI capabilities to address fluctuations in BSS business and increase OSS business share, focusing on three growth engines: AI large model applications, 5G private networks, and digital operations [7] Financial Data and Valuation - Total revenue is projected to decline from 7,913 million in 2023 to 6,646 million in 2024, followed by a recovery to 7,141 million in 2025, with a growth rate of 7% [2][13] - The net profit attributable to shareholders is expected to decrease from 533 million in 2023 to 453 million in 2025, with a significant rebound to 706 million in 2026 [2][13] - The company's PE ratio is forecasted to rise from 19.7 in 2023 to 23.3 in 2025, before decreasing to 12.9 by 2027 [2][13] Stock Performance - The company's stock has shown strong absolute performance, with a 40% increase over one month, 141% over six months, and 181% over twelve months [5] Key Financial Ratios - The company’s gross margin is projected to remain stable around 35.8% to 37.6% from 2023 to 2027 [13] - The return on equity (ROE) is expected to improve from 8.1% in 2023 to 10.5% in 2027 [13] - The asset-liability ratio is forecasted to decrease from 41.5% in 2023 to 39.5% in 2027, indicating improved financial stability [13]

Investment Rating - The report maintains an investment rating of "Outperform the Market" for the computer industry, indicating an expected return that will exceed the CSI 300 index by 10% or more over the next six months [5]. Core Insights - The report emphasizes the significance of Physical AI and World Models (WFM) as the next wave in AI, particularly in robotics, which will enhance reasoning and execution capabilities, enabling robots to understand the physical world [1][9]. - NVIDIA has launched two major platforms, Cosmos and Omniverse, aimed at accelerating the development of Physical AI systems and industrial digital twins, which are crucial for the evolution of the industry [3][11]. - The domestic Physical AI industry is forming, with companies like Suochen Technology leading in the CAE sector, leveraging extensive physical simulation data for industry applications [3][12]. Summary by Sections Industry Investment Rating - The computer industry is rated as "Outperform the Market" with a projected relative return of 69% over the next 12 months compared to the CSI 300 index [5]. Industry Trends - Physical AI aims to enable intelligent agents to understand and interact with the real world effectively, encapsulated in robots and autonomous vehicles [2][10]. - The World Model is a generative AI model that helps in understanding the dynamics of the real world, utilizing various data inputs to predict spatial relationships and movements [2][10]. Key Developments - NVIDIA's Cosmos platform facilitates efficient data processing and management for Physical AI systems, while the Omniverse platform integrates various technologies for industrial applications [3][11]. - The report highlights the advantages of domestic CAE companies like Suochen Technology, which utilize generative Physical AI technology for real-world applications [3][12]. Market Performance - The computer industry index increased by 2.32% this week, outperforming the Shanghai Composite Index by 1.63 percentage points, driven by the active AI-related themes [13][14]. - AI-related companies within the computer sector have shown strong performance, with significant gains in stocks like Suochen Technology [17][18].

Group 1 - NVIDIA's CEO Jensen Huang highlighted that over 1.5 million developers in China are utilizing NVIDIA's platform to innovate, with significant contributions from Chinese-developed open-source AI models like DeepSeek and Baidu Ernie Bot [2][3] - Open-source AI is seen as a catalyst for global progress, providing opportunities for various countries and industries to participate in the AI revolution, while also ensuring AI safety through collaboration on technical standards and security measures [2][3] - AI is now considered a fundamental infrastructure, reshaping supply chains and transforming production and logistics methods, with China's supply chain being described as a miracle [2][3] Group 2 - Hundreds of projects in China are using NVIDIA Omniverse for digital twin simulations to design and optimize factories and warehouses, with robots being trained in virtual environments for safe collaboration with humans in the physical world [2][3] - The next wave of AI will focus on robotic systems capable of reasoning and executing tasks, with factories expected to be driven by software and AI, coordinating human-robot teams to produce AI-led smart products over the next decade [3] - NVIDIA is working to enhance the capacity of the H20 supply chain and plans to accelerate this process in the coming months, following the announcement of export licenses for H20 chips to China [3] Group 3 - The development of humanoid robots in China is positioned advantageously due to the country's strong AI technology, excellent mechatronics, and a vast manufacturing base [4] - The domestic electric vehicle market has surprised the world with its rapid advancements, with NVIDIA collaborating closely with companies like Xiaomi [3][4] - The CEO of ASML projected that revenue from the Chinese mainland market will exceed 25%, aligning with the current order situation, as AI continues to drive growth in logic and memory chip markets [9]

Core Viewpoint - Huang Renxun, CEO of Nvidia, highlighted the rapid innovation capabilities of China's AI industry and its role in driving global AI development during his speech at the China International Supply Chain Promotion Expo [1][2]. Group 1: AI Industry Development - AI is transforming every industry, including scientific research, healthcare, energy development, transportation, and logistics management [1]. - Major Chinese platforms like Tencent, Alibaba, ByteDance, Xiaomi, and Baidu are leveraging AI to enhance their services and products [1][2]. - Nvidia's GPUs have been pivotal in the AI revolution, transitioning from CPU-based software to GPU-based machine learning [2]. Group 2: Future Predictions - Huang predicts that the next wave of AI will involve robotic systems, with factories being driven by software and AI, coordinating human-robot collaboration [3]. - AI is expected to become central to every industry, enterprise, product, and service in the coming decade [3]. Group 3: Market Insights - The Chinese market is crucial for American companies, with Huang noting that it is home to 50% of the world's AI researchers [3]. - Nvidia has received approval to resume sales of its H20 chips in China, with many orders already placed [3].

Core Viewpoint - NVIDIA is positioned as a driving force behind the global AI ecosystem, showcasing its significant contributions to various industries and its collaboration with leading Chinese companies [3][4]. Group 1: Company Overview - NVIDIA was founded in 1993 with a vision to revolutionize PC gaming through 3D graphics technology, becoming a key player in the gaming industry [1]. - The company developed the first programmable graphics processing unit (GPU) in 1999, paving the way for accelerated computing [2]. - The introduction of CUDA technology in 2006 transformed GPUs into general-purpose computing engines, laying the groundwork for the AI era [2]. Group 2: AI Development and Impact - The success of AlexNet on NVIDIA GPUs ten years ago triggered an explosive growth in artificial intelligence [2]. - NVIDIA has expanded AI computing applications significantly, achieving a performance increase of 100,000 times, which is 1,000 times faster than Moore's Law [2]. - AI is transforming every industry, including scientific research, healthcare, energy development, transportation, and logistics [4]. Group 3: Collaboration with Chinese Companies - AI powers major Chinese platforms such as Tencent WeChat, Alibaba Taobao, and ByteDance Douyin, enhancing their capabilities [5]. - Over 1.5 million developers in China are utilizing NVIDIA's platform to bring their innovations to life [6]. - Chinese-developed open-source AI models like DeepSeek and Baidu Ernie Bot are contributing to the rapid advancement of global AI [6]. Group 4: Future of AI and Robotics - AI is reshaping supply chains and changing production and logistics methods, with hundreds of projects using NVIDIA Omniverse for digital twin simulations [7]. - The next wave of AI will involve robotic systems capable of reasoning and executing tasks, leading to AI-driven factories and human-robot collaboration [7].

Core Viewpoint - The open-source AI in China is seen as a catalyst for global progress, providing opportunities for various countries and industries to participate in the AI revolution [1] Group 1 - Hundreds of projects in China are utilizing NVIDIA Omniverse for simulating digital twins, aimed at designing and optimizing factories and warehouses [1] - Robots are being trained in the NVIDIA Omniverse virtual environment to safely collaborate with humans in the physical world [1] - The next wave of AI will focus on robotic systems that possess reasoning and execution capabilities, enabling them to understand the physical world [1] Group 2 - In the next decade, factories are expected to be driven by software and AI, coordinating teams of robots that collaborate with humans to produce AI-led intelligent products [1]