Core Insights - Black Sesame Intelligence showcased its latest achievements in assisted driving, embodied intelligence, and consumer electronics at CES 2026, marking its strategic shift from "driving assisted driving" to "promoting intelligent evolution" [1] Group 1: Assisted Driving - The A2000 all-scenario general-purpose assisted driving demonstration platform made its debut, providing high-performance, high-reliability full-stack solutions for the smart automotive industry [2] - The Huashan A2000 chip has gained wide recognition in the industry, successfully collaborating with major automakers like Dongfeng, Geely, Hongqi, and JAC to implement assisted driving technology in mass-produced vehicles [5] - The A2000 chip has passed relevant U.S. reviews and is officially launched in the global market, featuring a large-core architecture and system-level optimization [5] Group 2: Embodied Intelligence - The SesameX multi-dimensional embodied intelligence computing platform made its overseas debut, aimed at providing an open, scalable, and mass-producible intelligent computing base for robotics [7] - The platform includes three series: Kalos, Aura, and Liora, catering to various complexities and forms of robotic needs, promoting the large-scale industrial implementation of embodied intelligence [7] Group 3: Consumer Electronics - Black Sesame's AI imaging solutions have been widely adopted in consumer electronics, with over 500 million devices equipped globally [8] - The recent strategic acquisition of Yizhi Electronics enhances Black Sesame's capabilities in low-power, cost-effective AI SoC chips, showcased at CES [8] - The AI imaging solutions cover a range of products, including smartphones, tablets, cameras, and AI glasses, providing enhanced user experiences through deep integration of chips and algorithms [8]

Industry Overview - The domestic intelligent driving chip industry is experiencing rapid growth, with the penetration rate of intelligent driving expected to drive significant market expansion in the short to medium term. The demand for robots is anticipated to create additional growth opportunities in the long term [1] - Most OEMs are likely to continue relying on third-party neutral intelligent driving chip platforms due to high costs associated with self-developed chips, including time, financial, and human resource investments, as well as high barriers in software ecosystems [1] Product Development - The company has a strong R&D capability in intelligent hardware, with core employees having over 15-20 years of experience. The A1000 series has been successfully mass-produced, enhancing the company's production experience [1] - The new mid-tier intelligent driving computing platform, C1200 family, aligns with the evolution of automotive EE architecture and cost reduction demands, showing considerable commercial potential. The next-generation high-performance platform, A2000, is set to cover various scenarios from NOA to Robotaxi, with mass production planned to start in 2026 [1] Ecosystem Collaboration - The company positions itself as a Tier 2 player, collaborating with leading Tier 1 manufacturers and algorithm firms to advance commercialization efforts [1] Growth Potential - The company is replicating its automotive-grade chip capabilities in the robotics industry, accelerating scale through external acquisitions and has launched the SesameX commercialization deployment platform [2] Financial Projections - Revenue forecasts for 2025, 2026, and 2027 are projected at 830 million, 1.38 billion, and 2.11 billion yuan respectively, with year-on-year growth rates of 75.8%, 65.5%, and 52.8% [2] - The company is assigned a reasonable valuation multiple of 12x PS for 2026, corresponding to a fair value of 28.46 HKD per share, maintaining a "buy" rating [2]

Investment Rating - The report assigns a "Buy" rating to the company [3]. Core Insights - The report highlights the rapid growth potential of the domestic intelligent driving chip industry, with a significant increase in penetration rates expected in the coming years. The company is well-positioned to benefit from this trend [10][17]. - The company has a strong R&D team with extensive experience, which enhances its product development capabilities and market competitiveness [49]. - The report emphasizes the importance of collaboration with Tier 1 manufacturers and algorithm providers to drive commercialization and expand market presence [61]. Summary by Sections 1. Overall Dimension - The intelligent driving chip market is expected to grow rapidly due to increasing penetration rates driven by technological advancements, policy support, and rising consumer demand. The penetration rates for L2, L2.5, and L2.9 configurations are projected to increase significantly by 2030 [17][20]. - The report notes that only a few OEMs are likely to achieve self-developed chips due to high costs and complexities involved in chip development [29][33]. - Geopolitical factors are expected to drive the domestic market share of intelligent driving chips, with a focus on increasing localization [41][42]. 2. Product Dimension - The company is continuously iterating its products, with a focus on developing a mature ecosystem. The A1000 series has already achieved significant market penetration, and the upcoming C1200 family is expected to meet evolving automotive architecture needs [49][55]. - The C1200 family is designed to support central computing architectures and is expected to be commercially viable soon, with significant advancements in safety and performance [55][57]. 3. Ecosystem Dimension - The company positions itself as a Tier 2 supplier, collaborating with leading Tier 1 manufacturers and algorithm firms to enhance its market offerings. This strategy aims to provide OEMs with substantial value and differentiation in their intelligent driving solutions [61]. - The report discusses the limitations of a tightly integrated hardware-software model, as seen in the case of Mobileye, and suggests that a more flexible approach will be beneficial for OEMs [61]. 4. Growth Potential - The company is expanding its capabilities into the robotics sector, leveraging its automotive-grade chip technology to capture new market opportunities. The SesameX platform is a key initiative in this regard [10][27]. - Revenue forecasts indicate substantial growth, with expected revenues of 834 million in 2025, 1.38 billion in 2026, and 2.11 billion in 2027, reflecting year-on-year growth rates of 75.8%, 65.5%, and 52.8% respectively [8].

Group 1 - The smart driving concept stocks mostly rose, indicating positive market sentiment in this sector [1] - Black Sesame Intelligence (02533.HK) increased by 7.32%, reaching HKD 20.96 [1] - Zhejiang Shibao (01057.HK) rose by 6.26%, reaching HKD 5.26 [1] - Pony.ai-W (02026.HK) saw a rise of 6.29%, reaching HKD 123.4 [1] - WeRide-W (00800.HK) increased by 4.54%, reaching HKD 24.42 [1]

Core Viewpoint - The smart driving concept stocks have shown significant gains, driven by advancements in autonomous driving technology and positive market sentiment towards the industry [1] Group 1: Stock Performance - Black Sesame Intelligence (02533) increased by 7.32%, reaching HKD 20.96 [1] - Zhejiang Shibao (01057) rose by 6.26%, reaching HKD 5.26 [1] - Pony.ai-W (02026) saw a rise of 6.29%, reaching HKD 123.4 [1] - WeRide-W (00800) increased by 4.54%, reaching HKD 24.42 [1] Group 2: Technological Advancements - A Model 3 equipped with FSD v14 successfully completed a cross-country trip from Los Angeles to South Carolina, covering 2732 miles in 2 days and 20 hours, entirely relying on FSD without any human intervention [1] - The journey included various driving conditions such as highways, city roads, nighttime driving, and multiple entries and exits at supercharging stations [1] Group 3: Industry Outlook - Dongwu Securities maintains a positive outlook on the L4 RoboX mainline for 2026 [1] - Orient Securities anticipates that with regulatory support and increasing market demand, the progress of L3 autonomous driving industrialization is expected to accelerate by 2026, benefiting related smart driving hardware and software suppliers [1]

Group 1 - The stock of Hezhizhen Intelligent (02533.HK) opened over 5% higher and is currently up 5.58%, trading at HKD 20.62 [2] - The trading volume reached HKD 4.724 million [2]

Core Viewpoint - Black Sesame Intelligence (02533) has successfully passed the relevant reviews by the U.S. Department of Commerce and the Department of Defense for its high-performance all-scenario intelligent driving chip, the Huashan A2000, allowing for global sales and application, marking its entry into the large-scale application phase [1] Group 1: Company Developments - The Huashan A2000 chip is built on a 7nm advanced process and integrates high-performance CPU, GPU, NPU, and various dedicated computing units, with performance comparable to the world's leading intelligent driving chips [1] - Black Sesame Intelligence's subsidiary SPV has acquired a total of 60% equity in Zhuhai Yizhi Electronic Technology Co., Ltd. for a total cash consideration of 457.8 million RMB, focusing on the development and sales of cost-effective, low-power AI system chips (SoC) and solutions [1] Group 2: Market Reaction - Following the announcement, Black Sesame Intelligence's stock opened over 5% higher and was up 5.58% at HKD 20.62, with a trading volume of HKD 4.724 million [1]

Major Events - Black Sesame Intelligence (02533) plans to acquire and increase its stake to 60% in Zhuhai Yizhi Electronic Technology, aiming to establish a full-scenario ecosystem for AI chips [1] - China Biopharmaceutical (01177) has completed the enrollment of the first patient in the Phase III clinical trial of its self-developed TDI01 "ROCK2 inhibitor" for the treatment of idiopathic pulmonary fibrosis [1] - Cao Cao Travel (02643) sees a positive outlook and its controlling shareholder voluntarily extends the lock-up commitment [1] - Laike Pharmaceutical-B (02105) has completed the first dosing of the Phase I single-dose escalation study for LAE103 [1] - VALA (02051) has launched its new model, Vala Home, and is collaborating with Ruichi Automobile to enhance production capacity and delivery systems [1] Operating Performance - BYD Company (01211) expects to achieve approximately 4.6024 million units in new energy vehicle sales for 2025, representing a year-on-year increase of 7.73% [1] - Geely Automobile (00175) reported total vehicle sales of 236,800 units in December, a year-on-year increase of approximately 13% [1] - NIO Inc. (09866) delivered 48,100 vehicles in December, setting a new monthly record with a year-on-year increase of 54.6% [1] - Great Wall Motors (02333) anticipates sales of approximately 1.3237 million units for 2025, reflecting a year-on-year growth of 7.33% [1] - Xpeng Motors (09868) achieved a total delivery of 429,400 vehicles for the entire year of 2025, marking a year-on-year increase of 126% [1] - China Power (02380) reported a total consolidated electricity sales volume of 10.0997 million megawatt-hours in November, an increase of 15.38% year-on-year [1] - Li Auto (02015) delivered 44,200 new vehicles in December, a year-on-year decrease of 24.44% [1]

Core Viewpoint - Black Sesame Intelligence (02533.HK) announced plans to acquire a 32.8435% stake in Zhuhai Yizhi Electronic Technology Co., Ltd. for a total consideration of RMB 457.8 million, which represents 19.5623% of the expanded total equity of the target company after the capital increase [1] Group 1 - The acquisition is set to be completed by December 31, 2025 [1] - The buyer is required to pay an additional unpaid registered capital of RMB 133,088 to the target company [1]

Group 1 - The company, Hezhima Intelligent, plans to acquire a 32.8435% stake in Zhuhai Yizhi Electronics Technology Co., Ltd. for a total consideration of RMB 457.8 million, with additional unpaid registered capital of RMB 133,088 [1] - Following the acquisition, the company will indirectly own 60% of the target company, which will become a non-wholly owned subsidiary, and its financial performance will be consolidated into the group's financial statements [1] Group 2 - The target company specializes in the development and sales of cost-effective, low-power AI system-on-chip (SoC) solutions, with most of its intellectual property being self-developed [2] - The acquisition is expected to enable the company to offer a full range of automotive-grade computing chips and comprehensive solutions for smart vehicles, while also expanding into robotics and AI applications [2] - Post-acquisition, significant synergies are anticipated in areas such as product matrix for automotive applications, customer expansion, innovation in robotics and AI, as well as supply chain and mass production, enhancing the company's competitive advantage in the AI SoC chip sector [2]