Guosen: Initiate coverage on ASIAINFO TECH (01675) with an "outperform" rating. AI big model delivery leader.

Guosen released a research report stating that the projected net profit attributable to ASIAINFO TECH (01675) for the years 2025-2027 is 4.07/6.28/8.66 billion yuan, corresponding to current P/E ratios of 13/8/6 times. Considering the rapid growth of orders in the large-scale model delivery field and the continuous breakthroughs in the areas of physical AI and satellite internet by the company, a valuation of 15-18 times for the year 2026 is given, with an estimated fair value of 7.43-8.92 Hong Kong dollars. First coverage is given with a "Outperform the Market" rating. Guosen's main points are as follows: The company is a global leader in operator systems and is currently transitioning to AI The company started in the communications industry and through its three major business systems of "Operator core system + Intelligent data operation + Intelligent connection products", it provides integrated digital solutions for industries such as communications, energy, and satellite internet. In 2025, the revenue from the operator core system business reached 4.782 billion yuan, accounting for 75.9% of total revenue. The BSS business has been the domestic leader for consecutive years, with a market share in China exceeding 50%; the OSS business has a market share of 15% domestically, ranking third nationally. The company has maintained long-term strategic cooperation with the three major domestic operators, while also successfully expanding to quality clients such as CHINA TOWER and Hong Kong Telecom, with the order scale in the Hong Kong-Macao region reaching 180 million yuan in 2025. Due to the company's continued focus on BSS and OSS, it has accumulated strong software and hardware capabilities for project delivery. In the AI wave, the company was the first to explore cooperation with large model manufacturers such as Alibaba, and is currently in a leading position in the industry in the field of AI large model delivery. The company's large model delivery orders are growing rapidly and it has started exploring token economics Relying on a three-tier large model delivery system of "methodology + toolchain + engineering delivery team", the company solves the difficult problem of landing generic large models vertically. The company has entered into ecological cooperation with AI giants such as Alibaba, HuoShan, Kimi, and Nvidia, becoming the "best delivery partner for the last kilometer" for basic model manufacturers. In 2025, the large model business achieved a large-scale volume, with AI and large model orders experiencing explosive growth of over 41 times, with over 70 projects signed overseas and over 100 benchmark cases, promoting the landing of intelligent bodies at over 210 locations. The company has also accumulated a large number of cases. For example, the "business segmentation large model" for operators has increased reporting efficiency by about 80%, saving approximately 15 million yuan in costs and achieving significant cost reduction and efficiency improvement effects. The company is also pioneering the layout of scenario tokens in the operator field, actively exploring token economics and assetization operations. Active layout in physical AI and satellite internet, leading domestically in 5G private network The company has reached a cooperation agreement with Nvidia and will fully undertake the deployment and delivery of the Nvidia Omniverse system in the Chinese region. The "Embodied Intelligence Laboratory" jointly initiated by the company and ABBSiasun Robot & Automation was established in Beijing to bridge the gap between intelligent decision-making and physical execution. The company has partnered with Yuanxin Satellite and the University of Electronic Science and Technology to obtain orders exceeding 14 million yuan in 2025, covering key elements such as operating systems and satellite service platforms. The company leads in 5G private network business and was selected in Gartner's 2026 global "4G and 5G private network service magic quadrant" in the Niche Players quadrant, maintaining the first market share in 5G private networks for nuclear power. Risk warning: downstream IT spending affected by macroeconomic conditions; AI progress slower than expected; intensified industry competition.