Company Overview - The report rates the company as "Buy" with a target price of HKD 19.6, based on a 14x price-to-sales (P/S) ratio for 2025 [3] - The company is a leading supplier of automotive-grade intelligent driving chips, benefiting from the wave of intelligent driving chip demand [13][27] - The company has launched the Huashan series (high-performance SoC) and the Wudang series (cross-domain SoC) to meet the needs of L2 to L4 level intelligent driving and cross-domain computing [16][19] Core Insights - The intelligent driving SoC chip market is expected to reach a trillion scale, with domestic chip manufacturers emerging [1] - The penetration rate of L2 and above passenger cars in China is projected to exceed 12 million units in 2024, with a penetration rate of 55.8%, and is expected to reach 93.5% by 2028 [1][42] - The company has developed self-researched automotive-grade IP cores, enhancing technical flexibility and reducing costs associated with external suppliers [2] Financial Performance - The company is set to go public on August 8, 2024, with an issuance price of HKD 28 and total fundraising of HKD 1.036 billion [3] - Revenue is projected to grow from RMB 312 million in 2023 to RMB 2.178 billion by 2027, with a compound annual growth rate (CAGR) of 86.76% from 2025 to 2026 [7][27] - The company achieved a net profit of RMB 313 million in 2024, recovering from a loss of RMB 4.855 billion in 2023 [7][38] Industry Insights - The intelligent driving market is experiencing rapid growth, with a compound annual growth rate of 33.8% in China from 2019 to 2023, outpacing the global growth rate of 28.5% [42] - The ADAS (Advanced Driver Assistance Systems) technology is becoming standard in intelligent vehicles, driving the expansion of the SoC market [49] - The domestic chip manufacturers are accelerating their rise against foreign competitors, with significant market share expected by 2028 [55][60]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][43]. Core Insights - The company is expected to achieve a revenue of 474 million yuan in 2024, representing a year-on-year growth of 52%. The net profit is projected to be 313 million yuan, a significant recovery from a loss of 4.86 billion yuan in 2023, primarily due to a fair value change gain of financial instruments [1][8]. - The revenue from autonomous driving products and solutions is anticipated to reach 438 million yuan in 2024, marking a 58.5% increase, driven by sales to leading domestic car manufacturers and an increase in the number of mass-produced models [10][19]. - The company is actively expanding into the robotics sector, with expectations for chip products and solutions to begin mass shipments in 2025 [3][35]. Summary by Sections Financial Performance - In 2024, the company achieved a gross margin of 41.06%, an increase of 16.4 percentage points year-on-year. The gross margin for autonomous driving products and solutions was 37.4%, up 16.0 percentage points [2][14]. - The company’s total revenue for 2024 is projected at 474 million yuan, with a year-on-year growth of 51.8%. The adjusted operating loss is expected to be 1.304 billion yuan, compared to 1.254 billion yuan in 2023 [8][43]. Product Development and Market Position - The A1000 series chips have been mass-produced and delivered to major car manufacturers such as Geely, Dongfeng, and BYD. The company has achieved nationwide coverage for its high-speed Navigation on Autopilot (NoA) solutions [18][19]. - The company is also focusing on the development of the A2000 chip series, which supports a wide range of autonomous driving scenarios, including urban NoA and fully autonomous Robotaxi applications [31][35]. Future Outlook - The company plans to deepen collaborations with leading automotive manufacturers and explore overseas market opportunities. It aims to enhance its product matrix and application scenarios, particularly in the commercial vehicle sector [29][33]. - The company is expected to continue benefiting from increased demand for intelligent driving chips, with revenue projections for 2025-2027 set at 810 million, 1.27 billion, and 2 billion yuan, respectively [43][44].

黑芝麻智能系列 车中旭霞 智能驾驶芯片深度 《智能驾驶芯片行业专题-智能驾驶进入快车道，地平线机器人-W和黑芝麻智能的投资价值分析 》——20250207 公司点评 《黑芝麻智能（02533.HK）- 2024年收入同比增长52%，智能驾驶芯片量产加速》——20250409 《黑芝麻智能（02533.HK）-黑芝麻智能预计2024年收入同比增长44%-60%，A1000芯片助力吉利千里浩瀚智驾系统》——20250310 核心观点 2024年公司实现营业收入4.74亿元，同比增长52% 2024年，公司实现总收入4.7亿元，同比增长52%；净利润3.1亿元，2023年为-48.6亿元，主要系金融工具公允价值变动 收益20.5亿元影响（2023年为-31.8亿元），经调整经营亏损13亿（2023年为-12.5亿元）。2024年，自动驾驶产品及解 决方案收入为4.4亿元，同比增长58.5%，主要是由于1)向国内头部车厂（包括比亚迪、东风、吉利等）及一级供应商 销售芯片及解决方案以及量产车型数量稳步增加；2)产品线的扩大及发展导致商用车市场渗透率提高；3)车路云一体 化等领域的收入随随着相关政府政策的发布而增加；智能 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company achieved a revenue of 474.25 million in 2024, representing a year-on-year growth of 51.81%. The gross margin increased by 16 percentage points to 41% [7] - The autonomous driving business saw a significant increase, with revenue growing by 52% to 4.7 billion, driven by a higher proportion of customized autonomous driving algorithms [7] - The company is deepening collaborations with leading automotive manufacturers and expanding its global presence, focusing on both new energy and traditional fuel vehicle sectors [7] - The introduction of new products, such as the C1200 and A2000 chips, is expected to enhance the company's technological moat and drive sales growth [7] Financial Summary - Total revenue projections for the company are as follows: 2023A: 312.39 million, 2024A: 474.25 million, 2025E: 883.02 million, 2026E: 1,430.62 million, and 2027E: 1,919.02 million [1][8] - The net profit attributable to the parent company is projected to be (4,855.12) million in 2023A, 313.32 million in 2024A, and (1,271.67) million in 2025E [1][8] - The earnings per share (EPS) are forecasted to be (7.71) in 2023A, 0.50 in 2024A, and (2.02) in 2025E [1][8] - The price-to-earnings (P/E) ratio is expected to decrease from 42.19 in 2023A to 27.79 in 2024A, and further down to 14.93 in 2025E [1][8]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved a revenue of 474.25 million in 2024, representing a year-on-year growth of 51.81% [1] - The adjusted net profit for 2024 is projected to be a loss of 13.0 billion, which is an improvement of 4% compared to the previous year's loss [7] - The company is focusing on deepening collaborations with leading automotive manufacturers and expanding its global presence [7] Financial Projections - Total revenue is expected to grow significantly from 312.39 million in 2023 to 1,919.02 million by 2027, with a compound annual growth rate (CAGR) of 34.14% [1] - The net profit is projected to improve from a loss of 4,855.12 million in 2023 to a loss of 349.19 million in 2027 [1] - The earnings per share (EPS) is expected to recover from a loss of 7.71 in 2023 to a loss of 0.55 by 2027 [1] Business Development - The company has made significant progress in its autonomous driving business, with a revenue increase of 52% in 2024 [7] - The introduction of new chips, such as the A2000 and C1200, is expected to enhance the company's product offerings and market competitiveness [7] - The company is expanding its application scenarios beyond passenger vehicles, including partnerships for smart city projects and robotics [7]

Financial Performance - The company's revenue increased from RMB 312.4 million in 2023 to RMB 474.3 million in 2024, representing a growth of 51.8%[6] - Revenue increased by 51.8% from RMB 312.4 million for the year ended December 31, 2023, to RMB 474.3 million for the year ended December 31, 2024, primarily due to increased sales of autonomous driving products and solutions[29] - Revenue from autonomous driving products and solutions rose by 58.5% from RMB 276.3 million for the year ended December 31, 2023, to RMB 438.0 million for the year ended December 31, 2024, driven by sales to leading domestic automotive OEMs and increased market penetration[30] - Gross profit increased to RMB 194.7 million for the year ended December 31, 2024, compared to RMB 77.1 million for the year ended December 31, 2023, reflecting improved sales performance[27] - The overall gross profit increased by 152.4% from RMB 77.1 million for the year ended December 31, 2023, to RMB 194.7 million for the year ended December 31, 2024[35] - Gross profit margin improved from 24.7% in 2023 to 41.1% in 2024[6] - Gross margin for autonomous driving products and solutions rose from 21.4% to 37.4%, while the gross margin for intelligent imaging solutions increased from 50.1% to 85.4%[35] - The company reported a profit of RMB 313.3 million for the year ended December 31, 2024, compared to a loss of RMB 4,855.1 million for the year ended December 31, 2023[44] Research and Development - Research and development expenses increased to RMB 1,435.2 million for the year ended December 31, 2024, from RMB 1,362.5 million for the year ended December 31, 2023, indicating continued investment in technology[27] - The company aims to enhance chip performance through proprietary architecture optimization and cost structure improvements, supporting the scaling of autonomous driving technology[24] - The company is enhancing its core IP capabilities by investing in ISP technology development, aiming to improve performance and reduce power consumption for complex image processing needs[22] - The company plans to allocate 80% of the net proceeds (approximately 760.6 million HKD) for research and development, with specific projects including the development of smart vehicle SoCs and autonomous driving solutions[60] Product Development and Innovation - The A1000 series chips have been mass-produced and delivered to major automotive manufacturers, achieving nationwide coverage for high-speed NoA functionality[7] - The C1200 series chips completed functionality verification for urban NoA and have secured mass production agreements with two mainstream OEMs by the end of 2024[8] - The company launched the new AI model design high-performance chip platform, the Huashan A2000 series, enhancing processing efficiency for autonomous driving systems[10] - The A2000 chip supports end-to-end large model applications, covering various autonomous driving scenarios, with real vehicle functionality deployment expected this year[16] - The company is collaborating with leading robotics companies to develop embodied intelligent algorithms and hardware solutions based on the A2000 chip, with mass shipments expected in the robotics field by 2025[18] - The C1200 series chip supports AI computing and execution control, enhancing the processing of multi-sensor data fusion, with applications in industrial, medical, and service sectors[19] Market Expansion and Customer Growth - The company is expanding its application scenarios, including commercial vehicles and integrated road cloud solutions, accelerating commercialization progress[12] - The company has seen a continuous increase in customers in the commercial vehicle sector, with ongoing projects in multiple cities[13] - In 2025, the company plans to accelerate the development of new customers and vehicle models, particularly in the new energy sector, to boost chip shipment volume and revenue[14] - The company is actively exploring overseas markets by establishing partnerships with automotive companies and suppliers in the US and Europe, aiming for dual growth in business performance and industry value[17] Financial Position and Cash Flow - Cash and cash equivalents increased from RMB 1,306.6 million at the end of 2023 to RMB 1,622.9 million at the end of 2024[48] - The net cash used in operating activities was RMB (1,189.8) million for the year ended December 31, 2024, compared to RMB (1,057.8) million for the previous year[50] - As of December 31, 2024, the company's total borrowings amounted to 674,212 thousand RMB, with total financial instruments issued to investors at 12,589,493 thousand RMB and lease liabilities at 48,187 thousand RMB, resulting in a total debt of 722,612 thousand RMB[52] - The company has a debt-to-equity ratio of 61.7% as of December 31, 2024, compared to 0% as of December 31, 2023[61] - The company reported a total comprehensive income of RMB 234,112,000 for the year, a significant recovery from a loss of RMB 5,008,490,000 in the previous year[69] Governance and Compliance - The company is committed to adhering to the corporate governance code as stipulated in the listing rules[146] - The board of directors includes executive and independent non-executive directors, ensuring a diverse governance structure[149] - The company’s founder serves as the chairman, executive director, and CEO, indicating strong leadership[150] - The audit committee, consisting of three independent non-executive directors, has reviewed the audited consolidated financial statements for the reporting period[142] - The financial statements have been prepared with appropriate disclosures, ensuring transparency and compliance[142] Shareholder and Equity Information - The company completed its initial public offering (IPO) on August 8, 2024, and the preferred shares automatically converted into common shares after successful listing[124] - The company has issued redeemable convertible preferred shares totaling RMB 12.6 billion as of December 31, 2023[115] - The total amount distributable to preferred shareholders cannot exceed three times the applicable issue price[119] - The company’s shareholders agreed to automatic conversion of preferred shares at a 1:1 ratio upon completion of the IPO[123]

黑芝麻智能系列 车中旭霞 智能驾驶芯片深度 《智能驾驶芯片行业专题-智能驾驶进入快车道，地平线机器人-W和黑芝麻智能的投资价值分析 》——20250207 公司点评 《黑芝麻智能（02533.HK）-黑芝麻智能预计2024年收入同比增长44%-60%，A1000芯片助力吉利千里浩瀚智驾系统》——20250310 事项 公司公告： 根据公司公告，2024年2月17日，黑芝麻智能发布2024年业绩预告，预计2024年实现收入约人民币4.5-5亿 元，同比增长约44%-60%，预计2024年实现权益持有人应占利润净额不低于人民币1亿元，而2023年亏损净额约为人 民币48.55亿元。 公司2024年业绩增长主要原因在于：1）自动驾驶产品及解决方案的收入增加，主要系(a)公司持续向 国内领先的汽车原始设备制造商OEM（包括BYD、东风及吉利等）和一级供应商出口芯片及解决方案等产品，且在量 产车型中的使用数量稳步增加；(b)公司产品线扩张及发展带来的商用车领域市场渗透率的提高；(c)随着相关政府政策 的发布，公司车路云一体化等领域的收入增加；及2)向投资者发行的金融工具的公允价值收益主要由于投资者持有的 附有优先权的股 ...

Investment Rating - The investment rating for the company is "Outperform the Market" [1][5][12] Core Views - The company is expected to achieve a revenue of approximately RMB 4.5-5 billion in 2024, representing a year-on-year growth of 44%-60%. The net profit attributable to equity holders is projected to be no less than RMB 100 million, recovering from a net loss of approximately RMB 4.855 billion in 2023 [2][5][7] - The growth in 2024 is primarily driven by increased revenue from autonomous driving products and solutions, including exports of chips and solutions to leading domestic OEMs such as BYD, Dongfeng, and Geely, as well as improved market penetration in commercial vehicles and revenue growth in integrated vehicle-road-cloud solutions due to supportive government policies [2][3][6] Summary by Sections Company Overview - The company is a leading domestic supplier of intelligent automotive computing chips and solutions, with its products covering various levels of intelligent driving and cross-domain computing scenarios [3][12] Financial Performance - The company forecasts revenues of RMB 4.8 billion, RMB 7.5 billion, and RMB 11.8 billion for 2024, 2025, and 2026 respectively. The projected net profits for the same years are RMB 1.1 billion, -RMB 9.98 billion, and -RMB 7.2 billion [3][12][15] Product Development - The Huashan A1000 chip, launched in June 2020, is a high-performance chip supporting L2 to L3 level autonomous driving, with a computing power of 58 TOPS (INT8). It is currently in mass production and has been adopted by several leading domestic automakers [2][7][10] Market Position - The company is positioned as a high-quality player in the domestic intelligent driving chip market, benefiting from the accelerated penetration of intelligent driving technologies and increasing demand for its Huashan and Wudang series chips [3][12][13]

Investment Rating - The report assigns a "Buy" rating for the company, marking its initial coverage [1]. Core Insights - The company focuses on high-performance SoC solutions that support advanced autonomous driving applications, leveraging proprietary IP cores and an open ecosystem for automotive manufacturers [4]. - The penetration rate of advanced driver-assistance systems (ADAS) has exceeded 50% in both global and Chinese passenger car markets as of 2023, with expectations for significant growth in the autonomous driving market, projected to reach RMB 1,017.1 billion by 2030, reflecting a compound annual growth rate (CAGR) of 49.2% [5]. - The company’s A1000 series chips are designed to facilitate high-level autonomous driving features in vehicles priced around 100,000 RMB, with partnerships established with major automotive manufacturers [6]. - The upcoming A2000 series chips are expected to enhance the capabilities of advanced driving systems, featuring significant performance improvements and supporting various applications beyond automotive [7]. - The Wudang C1200 series chips are designed for multi-domain integration and safety, meeting the highest automotive safety standards [8]. Financial Projections - The company is projected to achieve revenues of RMB 485 million, RMB 832 million, and RMB 1.359 billion for the years 2024, 2025, and 2026, respectively, with a notable growth rate of 89% in 2023 [9][11]. - The net profit attributable to the parent company is expected to be RMB 133 million in 2024, with losses projected for 2025 and 2026 [9][11]. - Earnings per share (EPS) is forecasted to improve from -68.40 RMB in 2023 to 0.21 RMB by 2026 [11].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [4] Core Insights - The company is a leading Tier 2 supplier of automotive-grade intelligent driving chips, with rapid growth driven by its Huashan and Wudang series of chips [1][15] - The company has established partnerships with over 49 automotive OEMs and Tier 1 suppliers, including major players like FAW Group and Bosch [1][28] - Revenue has surged from 53 million in 2020 to 312 million in 2023, with a projected revenue of 492 million in 2024 [1][5] - The company is expected to benefit from the increasing penetration of autonomous driving technology, with the market for ADAS SoCs projected to reach 49.6 billion RMB by 2028, growing at a CAGR of 28.6% from 2023 to 2028 [2][36] Summary by Sections Company Overview - The company is recognized as the third-largest global supplier of automotive-grade high-performance SoCs based on 2023 shipment data [1][15] - It focuses on providing integrated solutions that include proprietary ISP and NPU IP cores, middleware, and algorithms for autonomous driving applications [15][19] Market Trends - The penetration rate of autonomous driving vehicles is expected to exceed 93.5% in China by 2028, surpassing the global average [2] - The complexity of automotive electronic architectures is driving the demand for SoCs, which are becoming the mainstream core chips in vehicles [2][36] Financial Performance - The company reported a net profit of 1.105 billion in H1 2024, reflecting a year-on-year increase of 129.63% [1][29] - Revenue is projected to grow significantly, with estimates of 4.92 billion, 10.39 billion, and 17.41 billion for 2024E, 2025E, and 2026E respectively [4][5] Product Development - The company has developed two series of automotive-grade SoCs: the Huashan series for high-performance applications and the Wudang series for cross-domain functionalities [19][25] - The Huashan A1000 Pro, launched in 2021, is noted for its performance, providing over 106 TOPS of computing power, making it one of the highest-performing automotive SoCs in China [24][25] Customer Base and Partnerships - The company has seen a steady increase in its customer base, with a retention rate rising from 18% in 2021 to 35% in 2023 [3] - It has secured 23 model orders from 16 automotive OEMs and Tier 1 suppliers, indicating strong market demand for its products [3][28]