Digital Twins & Physical AI

A scarce Hong Kong-listed name on the digital-twin and physical-AI theme, with 2025 revenue of RMB 348 million and a gross margin that fell from 51.1% to 30.0%; at roughly 100x P/S, the price already discounts the optimistic scenario. 51Aes remains the engine of the income statement while the 51Sim growth leg has yet to monetize, putting a fair buy range at HK$35 to HK$50. Rating Watch: the technology and the theme are both scarce, but the current price has already priced in the bull case and needs 51Sim ramp and margin repair to be confirmed by the financials.

A scarce Hong Kong-listed digital-twin pure play that still lost RMB 186 million in 2025, runs negative operating cash flow, and saw gross margin fall from 51.1% to 30.0%; at the current HK$98.55 the stock trades at more than 100x P/S, which has already bought the most distant success in advance. Owner earnings remain negative and the fair buy band is HK$5–10. Rating Avoid: a good story with weak cash flow priced for a future that has not yet shown up in the financials.