Guosen Securities has released a research report forecasting that AsiaInfo Technology (01675) will achieve net profits attributable to parent shareholders of RMB 4.07 billion, RMB 6.28 billion, and RMB 8.66 billion for the years 2025 to 2027, respectively. This corresponds to current price-to-earnings (P/E) ratios of approximately 13x, 8x, and 6x for those years. Considering the company's rapid growth in orders within the large model delivery sector and its continuous breakthroughs in physical AI and satellite internet, a valuation range of 15-18x P/E for 2026 is applied. This yields an estimated fair value range of HKD 7.43 to HKD 8.92. The firm initiates coverage with an "Outperform" rating.
The core views from Guosen Securities are as follows:
The company is a global leader in operator systems and is currently undergoing a comprehensive transformation towards AI. Originating in the telecommunications industry, AsiaInfo Technology provides integrated digital and intelligent solutions for sectors including communications, energy, and satellite internet through its three primary business systems: operator core systems, intelligent data operations, and intelligent connectivity products. In 2025, its operator core systems business generated revenue of RMB 47.82 billion, accounting for 75.9% of total revenue. Within this, its Business Support Systems (BSS) business has ranked first domestically for many consecutive years, holding a market share exceeding 50% in China. Its Operations Support Systems (OSS) business holds a 15% domestic market share, ranking third nationally. The company maintains long-term, deep strategic partnerships with China's three major telecom operators and has successfully expanded its clientele to include premium customers such as China Tower and Hong Kong Telecom. Orders from the Hong Kong and Macau regions reached RMB 180 million in 2025.
Due to its sustained focus in the BSS and OSS fields, the company has accumulated profound capabilities in software, hardware, and project delivery. Amid the AI wave, it was among the first to explore collaborations with major model developers like Alibaba. Currently, in the domain of AI large model delivery, the company holds an industry-leading position.
The company's large model delivery orders are growing rapidly, and it has begun exploring token economics. Leveraging a three-tier large model delivery system comprising "methodology + toolchain + engineering delivery teams," the company addresses the challenges of implementing general-purpose large models in vertical business scenarios. It has established ecosystem partnerships with AI giants including Alibaba, Volcano Engine, Kimi, and NVIDIA, positioning itself as the "best last-mile delivery partner" for foundation model providers. In 2025, its large model business achieved scale, with AI and large model orders experiencing explosive growth exceeding 41 times. It secured over 70 projects outside its traditional domains and accumulated more than a hundred benchmark cases, promoting the deployment of intelligent agents across over 210 sites. The company has also amassed a significant portfolio of cases. For instance, an operator's "Business Analysis Large Model" improved report generation efficiency by approximately 80%, cumulatively saving costs of around RMB 15 million, demonstrating significant cost reduction and efficiency gains. The company is also a pioneer in deploying scenario-based tokens within the operator sector, actively exploring token economics and promoting asset-based operations.
The company is actively expanding into Physical AI and satellite internet, while maintaining leadership in 5G private networks domestically. It has reached a cooperation agreement with NVIDIA to fully undertake the deployment and delivery of NVIDIA's Omniverse system in China. The "Embodied Intelligence Laboratory," jointly initiated with ABB Robotics, was established in Beijing, aiming to bridge the path from intelligent decision-making to physical execution. Through collaborations with Yuanxin Satellite and the University of Electronic Science and Technology of China, the company secured orders exceeding RMB 14 million from China SatNet in 2025, covering core areas such as operational systems and satellite-borne business platforms. The company's 5G private network business is leading, having been included in the Niche Players quadrant of Gartner's 2026 Magic Quadrant for "4G and 5G Private Network Services, Worldwide." It maintains the top market share in the 5G private network segment for the nuclear power industry.
Risk factors include: potential impact of macroeconomic conditions on downstream IT expenditures; slower-than-expected progress in AI development; and intensifying industry competition.