Core Viewpoint - Black Sesame Technology is positioned as a leading domestic assisted driving SoC chipset designer in China, with strong revenue growth prospects driven by its C1200 and A2000 series chipsets [1][2] Revenue Forecast - Projected revenues for Black Sesame from 2025 to 2027 are RMB736.4 million, RMB1,611.2 million, and RMB2,035.5 million, reflecting year-on-year growth rates of 55.3%, 118.8%, and 26.3% respectively [1] Business Developments - Revenue growth is dependent on three key developments: 1) Success of the C1200 series in the integrated cockpit and ADAS market in the short term [2] 2) Rapid mass production and design wins for the A2000 series, enabling medium-term revenue growth [2] 3) Advancements in process technology to 5-3 nm for next-generation SoCs expected to be mass-produced by 2028 [2] Market Positioning - The C1200 series is expected to capture significant market share in the cockpit domain controller market, projected to grow to between RMB5.4 billion and RMB11.0 billion by 2026, with an 80% sales volume increase in 2025 [3] - Black Sesame is positioned as a geopolitically safe alternative to Qualcomm, which may enhance its market share if pricing strategies are effectively managed [3] Medium-Term Outlook - Achieving vehicle mode designations for the A2000 series in 2025 could lead to increased volume, average selling price (ASP), and gross margin (GM) in 2026 [3] - The company is actively engaging with various OEMs to secure vehicle designations, and the A2000 series boasts high raw INT8 TOPS compared to domestic competitors [3] Investment Catalysts - Key catalysts for investment include the announcement of design wins for the A2000 chipset and performance figures demonstrating the success of the C1200 series [4]

Investment Rating - The report initiates coverage on Hezhima Intelligent, assigning a target price of HKD 24.04 and a "Buy" rating based on a 16.8x 2025 P/S ratio [1][7]. Core Viewpoints - Hezhima Intelligent is a leading domestic supplier of intelligent driving and robotics AI chips, with a comprehensive product range covering from tens of TOPS to thousands of TOPS in edge AI computing capabilities [1][3]. - The company is expected to benefit from the growing demand for advanced intelligent driving solutions driven by automakers like Geely and BYD, as well as the potential demand for edge AI chips from the development of large-scale robotics models [1][2]. - The report highlights the optimistic growth trajectory for the global autonomous driving and robotics industry, with significant advancements expected in high-performance AI chips [2][3]. Company Overview - Hezhima Intelligent focuses on self-developed core IP, high-performance architecture, and the ability to mass-produce automotive-grade chips [3]. - The company has established partnerships with major automakers such as Geely, FAW, and Dongfeng, which are expected to accelerate chip shipment growth in 2025 [3][5]. - The product matrix includes the Huashan A1000 and A2000 series for autonomous driving and the Wudang C1200 series for cockpit applications, with the A2000 and C1200 series also applicable for robotics [17][29]. Market Differentiation - The report contrasts its views with market concerns regarding the company's production timeline compared to competitors, asserting that Hezhima's high-performance products have been validated for three years and are well-positioned to benefit from the increasing regulatory focus on intelligent driving safety [4][23]. - The company’s differentiated approach includes a focus on high-performance chips, bypassing lower-tier products, and establishing a strong foothold in the robotics sector [4][24][25]. Financial Projections - Revenue projections for Hezhima Intelligent are set at RMB 8.4 billion, RMB 14.2 billion, and RMB 20.4 billion for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 76.8%, 69.3%, and 44.0% [5][6]. - The gross margin is expected to improve to 45.8%, 47.0%, and 47.7% over the same period, indicating a positive trend in profitability as the company scales [5][6].

Investment Rating - The report assigns an "Accumulate" rating for Black Sesame Intelligence (02533.HK) as a first-time coverage [1]. Core Views - Black Sesame Intelligence is a leading supplier of automotive-grade intelligent vehicle computing chips and solutions, focusing on autonomous driving products and solutions. The company benefits from the expansion of the autonomous driving solution market driven by the trend of intelligent driving equality. Revenue projections for 2025-2027 are estimated at 792 million, 1.253 billion, and 1.942 billion CNY, with corresponding year-on-year growth rates of 66.9%, 58.3%, and 55.0% [6]. Summary by Sections Company Overview - Black Sesame Intelligence began with high-performance chips for autonomous driving and has expanded into cross-domain computing chips, opening new market opportunities [17]. - The founder holds significant control, and the management team possesses strong technical expertise [19]. Main Products - The company offers the Huashan and Wudang series of SoC hardware, focusing on autonomous driving and intelligent imaging solutions. The Huashan series includes the A1000 and A2000 chips, while the Wudang series targets cross-domain computing [25][27]. Financial Analysis - The autonomous driving products and solutions are the main revenue source, with a projected revenue of 4.38 billion CNY in 2024, accounting for 92.35% of total revenue. The company has seen rapid revenue growth due to the mass production of the Huashan A1000 chip [39][40]. - The overall gross margin is expected to improve due to the continuous enhancement of autonomous driving algorithms and the increasing adoption of SoC-based solutions [41]. Market Growth - The penetration of autonomous driving is expected to drive rapid growth in the autonomous driving SoC market, with global and Chinese ADAS application market sizes projected to grow at CAGRs of 27.5% and 28.6% from 2023 to 2028 [7][61]. - The commercial vehicle autonomous driving SoC market and intelligent road solutions are anticipated to have promising growth prospects due to increasing demand for safety features [63]. Competitive Position - Black Sesame Intelligence holds a 2.2% market share in the Chinese autonomous driving chip and solution market, ranking fifth, indicating significant room for growth compared to competitors like Mobileye and NVIDIA [68].

Investment Rating - The report assigns a "Buy" rating for Black Sesame Intelligence (02533.HK) as a first-time coverage [1]. Core Views - Black Sesame Intelligence is a leading supplier of automotive-grade intelligent vehicle computing chips and solutions, focusing on autonomous driving products and solutions. The company benefits from the expanding market for autonomous driving solutions driven by the trend of "intelligent driving equality" [5][6]. - Revenue projections for the company are estimated at 792 million, 1.253 billion, and 1.942 billion CNY for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 66.9%, 58.3%, and 55.0% [5][8]. Summary by Sections Company Overview - Black Sesame Intelligence began with high-performance chips for autonomous driving and has expanded into cross-domain computing chips, opening new market opportunities [16]. - The founder holds significant control over the company, and the management team possesses strong technical expertise [18][22]. Main Products - The company offers the Huashan and Wudang series of SoC hardware, focusing on autonomous driving and intelligent imaging solutions. The Huashan series includes the A1000 and A2000 chips, which support various levels of autonomous driving functions [25][26]. - The Wudang series, particularly the C1200 chip, is a pioneer in cross-domain computing, integrating multiple functionalities for smart vehicle control [26]. Financial Analysis - The autonomous driving products and solutions are the primary revenue source, with a projected revenue of 4.38 billion CNY in 2024, accounting for 92.35% of total revenue [38]. - The company has experienced rapid revenue growth due to the mass production of the Huashan A1000 series, with further growth expected from the Wudang C1200 and Huashan A2000 series [39][40]. Market Potential - The global and Chinese markets for ADAS applications are expected to grow significantly, with projected CAGRs of 27.5% and 28.6% from 2023 to 2028 [6][60]. - The company holds a 2.2% market share in the Chinese autonomous driving chip and solution market, ranking fifth, indicating substantial room for growth [67].

Core Insights - The article discusses the evolving landscape of the automotive auxiliary driving chip industry, emphasizing the importance of long-term partnerships and platform capabilities over short-term gains [1][2][5]. Industry Overview - The auxiliary driving chip market has gained significant attention, with a shift from merely counting "hit models" to understanding the deeper needs of automotive manufacturers [1][2]. - Automotive manufacturers are increasingly prioritizing "controllable, reliable, and evolvable" chip platforms that offer better computing power, energy efficiency, system adaptability, and long-term service capabilities [2][5]. Company Developments - Black Sesame Intelligence (02533.HK) launched a new generation chip platform and announced mass production of the first domestic single-chip central computing platform based on the Wudang C1296 chip, set to be used in multiple new models from Dongfeng Motor by 2025 [3][4]. - The collaboration with Intel to create the "Intel & Black Sesame Intelligent Cabin-Driving Integration Platform" aims to integrate standard vehicle functions into a long-lifecycle platform, addressing cost control for economic models while supporting high-end models [4]. Financial Performance - Black Sesame Intelligence reported a revenue of 474 million yuan for 2024, a 51.8% increase from 312 million yuan in 2023, with a net profit of 313 million yuan, marking a turnaround from previous losses [7]. - The growth in revenue is attributed to the successful sales of auxiliary driving products and solutions, with significant contributions from partnerships with major automotive OEMs like BYD, Dongfeng, and Geely [7]. Market Trends - The auxiliary driving industry is transitioning from early adoption to widespread use, with L2-level auxiliary driving systems expected to see a 25.33% increase in deliveries in 2024, reaching 8.67 million units [8][9]. - The high-level automated navigation driving (NOA) segment is projected to grow significantly, with a 162.31% increase in deliveries, indicating a strong market demand for advanced driving assistance technologies [8][9]. Strategic Focus - The article highlights the importance of deep collaboration between chip manufacturers and automotive companies, emphasizing that the ability to co-evolve and adapt is crucial for long-term success in the industry [9][10]. - Black Sesame's commitment to high R&D investment, amounting to 340 million yuan in 2024, reflects its strategy to enhance product competitiveness and secure a favorable position in the smart automotive chip market [9].

Financial Performance - In 2024, the company achieved a revenue of RMB 474.25 million, representing a year-on-year growth of 51.8%[9] - The company's revenue increased from RMB 312.4 million in 2023 to RMB 474.3 million in 2024, representing a year-on-year growth of 51.8%[18] - Revenue increased by 51.8% from RMB 312.4 million in 2023 to RMB 474.3 million in 2024, driven by sales of autonomous driving products and solutions[30] - Revenue from autonomous driving products and solutions rose by 58.5% from RMB 276.3 million in 2023 to RMB 438.0 million in 2024, attributed to increased sales to major domestic automotive OEMs and enhanced market penetration[31] - Overall gross profit surged by 152.4% from RMB 77.1 million in 2023 to RMB 194.7 million in 2024, with an overall gross margin improvement from 24.7% to 41.1%[36] - Gross margin improved from 24.7% in 2023 to 41.1% in 2024[18] - The company reported a significant operating loss of RMB 1.75 billion for 2024, reflecting ongoing investment in technology and product development[8] - The adjusted net loss for the year ended December 31, 2024, was RMB (1,304,251) thousand, compared to an adjusted net loss of RMB (1,254,247) thousand for 2023[46] - The company recorded a profit of RMB 313.3 million for the year ended December 31, 2024, compared to a loss of RMB 4,855.1 million in 2023[45] Product Development and Innovation - The A1000 series chips have been scaled for delivery in multiple models from leading domestic automotive manufacturers[9] - The newly launched A2000 series chips are designed for next-generation AI models, outperforming current flagship chips and supporting various applications beyond automotive[12] - The company introduced a new NPU architecture, Jiushao, which enhances computational efficiency and supports large models, alongside a new AI toolchain, BaRT[13] - The C1200 series chips are expected to enter mass production in 2025, with two OEM partnerships already established[11] - The A2000 series is expected to begin large-scale production in 2025, focusing on applications in robotics and emerging AI scenarios[16] - The C1200 series cross-domain integration chips completed functional verification for urban NoA (Navigation on Autopilot) in 2024, with deep collaborations established with several OEMs[19] - The company has achieved mass production delivery of the high-speed NoA solution based on the A1000 chip and will develop urban NoA solutions using the C1200 and A2000 chips in 2025[23] - The company anticipates bulk shipments in the robotics sector by 2025, leveraging AI edge inference technology and collaborating with multiple robotics companies[24] Market Position and Strategy - The core self-developed IP and NPU architecture are identified as key competitive advantages in the smart driving chip market[13] - The market share for the company's chips in the high-speed NoA segment ranks third among traditional independent brands[10] - The competitive landscape in the smart driving chip sector is expected to consolidate, with only a few leading companies likely to dominate the high-end assisted driving market[14] - The company aims to achieve operational profitability in the medium term by optimizing cost structures and enhancing product competitiveness[17] - The company is expanding its application scenarios to include commercial vehicles and integrated vehicle-road-cloud solutions, accelerating the commercialization process[21] - The company has established pilot projects for integrated vehicle-road-cloud solutions in multiple cities, enhancing its market position[21] Financial Health and Assets - Total assets increased to RMB 2.32 billion in 2024, while total liabilities decreased to RMB 1.22 billion[8] - As of December 31, 2024, the company's cash and cash equivalents amounted to RMB 1,622.9 million, an increase from RMB 1,306.6 million as of December 31, 2023[47] - The total liabilities as of December 31, 2024, were RMB 722,612 thousand, a significant decrease from RMB 12,644,941 thousand as of December 31, 2023[49] - The company's debt-to-equity ratio as of December 31, 2024, was 61.7%, compared to 0% as of December 31, 2023[53] Governance and Corporate Structure - The company has not separated the roles of Chairman and CEO, believing this structure ensures leadership consistency and effective strategic planning[61] - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, maintaining strong independence[61] - The company is committed to supporting employee development through training and professional development programs, ensuring equal learning opportunities[62] - The company has a strict equal employment opportunity policy to foster an inclusive work environment, prohibiting discrimination based on race, color, religion, gender, or sexual orientation[63] - The board has adopted a diversity policy and conducts annual assessments of the independence of non-executive directors[68] - The board meets at least four times a year, ensuring timely communication and preparation for meetings[70] - The company emphasizes high standards of business ethics and integrity in all operations, with clear standards outlined in training materials[64] - The board is responsible for guiding and supervising the company's affairs, ensuring good risk management and internal control systems[69] Risk Management and Compliance - The company has established a comprehensive risk management system to address operational, compliance, information security, and investment risks[95][98][101] - The company has implemented a centralized intellectual property management system to protect its intellectual property rights[100] - The company has a whistleblowing mechanism to encourage internal reporting of suspicious activities, promoting a culture of compliance and ethical behavior[103] - The company has a zero-tolerance policy towards corruption, prohibiting any corrupt activities by employees[102] - The internal audit department is responsible for reviewing the effectiveness of internal controls and reporting significant issues to the audit committee[105] - The audit committee reviews the company's risk management and internal control systems, finding them effective and adequate[105] Shareholder Communication and Relations - The company emphasizes effective communication with shareholders to enhance investor relations and transparency, utilizing financial reports and shareholder meetings[109] - The company has implemented a shareholder communication policy to ensure timely and equal access to information for shareholders[115] - The company encourages shareholders to provide their email addresses for timely communication and updates[112] - The company’s website serves as a platform for communication with shareholders and investors, regularly updating information including financial statements and announcements[113] - The board has reviewed the effectiveness of the shareholder communication policy and found it to be effectively executed[115] Employee and Director Information - The company employed 973 employees as of December 31, 2024, with a focus on attracting and retaining qualified personnel[51] - The management team includes experienced professionals with backgrounds in finance, technology, and law, enhancing the company's strategic capabilities[177][178][179] - The company has purchased and maintained appropriate insurance for its directors[192] - Details regarding the remuneration of directors and the five highest-paid individuals are included in the annual report's financial statements[193] Share Options and Equity Plans - The company has adopted a post-IPO share plan effective from January 2023, which will be reviewed and approved by the remuneration committee[92] - The maximum number of shares that may be issued under the pre-IPO share scheme is 156,847,868, representing approximately 27.56% of the issued share capital as of December 31, 2024[150] - The pre-IPO share scheme is set to automatically terminate 10 years from the date of adoption by the board, with approximately 6.7 years remaining[151] - The total number of options granted under the pre-IPO share option plan amounts to 134,158,761 shares, with a range of exercise prices from $0.035 to $0.70[155] - The company has a structured vesting schedule for options, ensuring alignment with long-term performance goals[155]

Investment Rating - The report assigns an "Overweight" rating to the company with a target price of HKD 19.6, based on a 14x price-to-sales (P/S) ratio for 2025 [3]. Core Insights - The smart driving SoC chip market is expected to reach a trillion scale, with domestic chip manufacturers emerging prominently. The market penetration for L2 and above passenger vehicles is projected to exceed 12 million units in 2024, with a penetration rate of 55.8%, and is expected to reach 93.5% in China by 2028 [1][42]. - The company is positioned with a dual-line layout of high-performance SoC and cross-domain SoC, focusing on both smart driving and robotics applications [1][16]. - The company has developed proprietary automotive-grade IP cores, enhancing technical flexibility and reducing costs associated with external suppliers [2]. Company Overview - The company is a leading supplier of automotive-grade smart driving chips, benefiting from the smart driving chip wave. It was established in 2016 and is set to be listed on the Hong Kong Stock Exchange on August 8, 2024, with an issue price of HKD 28 [13]. - The business structure includes high-performance SoC and cross-domain SoC, with the Huashan and Wudang series chips catering to L2 to L4 level smart driving and cross-domain computing needs [16][17]. Financial Analysis - The company forecasts revenues of RMB 8.86 billion, RMB 14.84 billion, and RMB 21.78 billion for 2025, 2026, and 2027, respectively, with a significant increase in revenue driven by the smart driving solutions [3][27]. - The revenue growth rate is expected to be 88.82% in 2023, 51.81% in 2024, and 86.76% in 2025, indicating a strong upward trend [7]. - The gross margin for smart driving solutions is projected to improve significantly, reaching 37.4% in 2024, up from 21.4% in 2023 [33]. Industry Insights - The smart driving SoC and humanoid robot markets are projected to reach a trillion scale, with domestic manufacturers gaining traction [1][51]. - The penetration rate of smart driving in China is expected to grow rapidly, with a compound annual growth rate (CAGR) of 33.8% from 2019 to 2023, outpacing the global growth rate of 28.5% [42][45]. - The ADAS technology is becoming standard in smart vehicles, with the SoC market expected to expand significantly as L2+ and higher-level smart driving technologies become more prevalent [49][50].

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 ...