Soochow International: First Initiates Buy Rating for SEER TECH (06106), Target Price HKD 100.55

Soochow International has released a research report, initiating coverage of SEER TECH (06106) with a "Buy" rating and a 12-month target price of HKD 100.55, offering about 40% upside potential from the current price of HKD 71.85. SEER TECH has completed large-scale commercial validation of the third-party Siasun Robot & Automation brain across configurations and scenarios, with approximately 50,000 units in real operation further creating a rare entry point for genuine machine data. The firm believes that the company is evolving from the Siasun Robot & Automation brain platform to a data-driven embodied intelligence platform in the real world. Key points from Soochow International include: The third-party Siasun Robot & Automation brain is at the critical juncture of converting model capabilities into physical execution. Soochow International points out that the third-party Siasun Robot & Automation brain is at the critical juncture of converting model capabilities into physical execution. Its cross-configuration reuse and neutral open positioning make it the core infrastructure for scaling embodied intelligence. The Siasun Robot & Automation body and application scenarios will remain fragmented in the long term, but the control, software, and model capabilities of the Siasun Robot & Automation brain possess standardized reuse value; as a neutral third party, it is better suited to undertake cross-vendor common capabilities due to its open ecosystem and economies of scale, extending to multiple models and scenarios along with customer installations. In the short to medium term, embodied intelligence can realize a market space of RMB 2.5-8 trillion, and in the long term, as model capabilities improve, it is expected to reach a trillion-level scale. The Siasun Robot & Automation brain connects real machine deployment, data feedback, and model iteration. The firm believes that the Siasun Robot & Automation brain links real machine deployment, data feedback, and model iteration. This transforms commercial installations into a low-marginal-cost data production network, continuously reinforcing model capabilities as installations expand. Currently, the 50,000 Siasun units in operation have accumulated approximately 500,000 hours of multimodal real machine data across dozens of Siasun Robot & Automation configurations. The Siasun Robot & Automation brain facilitates the collection of perceptions, states, actions, and results from different bodies along a unified control link, enhancing cross-configuration data consistency and trainability. The company further promotes the iteration of models such as VLA, World Model, and WAM based on real machine data, with new installations and improved feedback rates continually expanding data supply. The model capabilities feed back into products and shipments, forming a closed loop of "installationdatamodelproduct." The ongoing reuse of real project engineering assets enhances new customer duplication and deepens existing customer relationships. SEER TECH continually converts the non-standard demands of real projects into reusable engineering assets, while embedding customer workflows and expanding the integrator network, simultaneously enhancing new customer replication and existing customer deepening. The company has accumulated over 2,500 clients across 20+ industries, supported by more than 2,000 integrator partners that constitute a scalable customer outreach network; reusable engineering assets like component adaptation, parameter configuration, and standard functions reduce redundant development for new projects. In the first half of 2026, the company expanded its client base by approximately 410 new clients, a year-on-year increase of over 60%; the contribution rate from existing clients rose from 50.9% in 2023 to 60.6% in 2025, with a repurchase rate of around 60% from existing clients in the first half of 2026, demonstrating the simultaneous enhancement of new customer duplication and existing customer deepening. In the first half of 2026, shipments, revenue, and gross profit of the Siasun Robot & Automation brain accelerated simultaneously. In the first half of 2026, the company achieved revenue of RMB 264 million, a year-on-year increase of 67.5%; shipments of the Siasun Robot & Automation brain exceeded 8,000 units, a year-on-year increase of over 80%. The overall gross margin increased by 1.2 percentage points to 46.6%, corresponding to a gross profit of approximately RMB 123 million, a year-on-year increase of about 72%. During the same period, the company secured new orders of over RMB 467 million, a year-on-year increase of over 60%; overseas revenue reached RMB 66 million, a year-on-year increase of 197.5%, with a gross margin of approximately 67%. In terms of valuation, the firm estimates that SEER TECH's total operating revenue will reach RMB 662 million, RMB 979 million, and RMB 1.44 billion in 2026-2028, with the current market value corresponding to P/S ratios of 10.3x, 7.0x, and 4.7x, respectively. The firm employs a segmented weighted P/S valuation, assigning a 7x P/S to Siasun Robot & Automation's complete machines and other businesses, and an 18x P/S to the Siasun Robot & Automation brain for the 2027 forecast, resulting in an overall forecast P/S of approximately 9.8x for 2027, with a 12-month target price of HKD 100.55.