Group 1: Private Car Manufacturers - The profitability of private car manufacturers is strong, with significant advancements in high-end strategies, increased export ratios, and scale effects in the new energy vehicle sector [1] - Key players like Seres, BYD, and Geely are expected to lead the acceleration of advanced driver assistance systems by 2025, enhancing their market position [1] - The overseas market is contributing considerable profits, with BYD maintaining high per-vehicle profitability due to its scale and supply chain advantages [1] Group 2: New Force Car Manufacturers - New force car manufacturers are facing increased urgency to achieve self-sustainability, with companies like Li Auto showing stable profitability and improvements in gross margins for Leap Motor and Xpeng [2] - The financing environment and valuation levels for new force manufacturers have changed significantly since their initial public offerings, necessitating quicker self-financing [2] - Product launches in 2025 will be crucial for these companies to expand their growth potential, with Li Auto focusing on pure electric models and Xpeng diversifying its product matrix [2] Group 3: State-Owned Car Manufacturers - State-owned car manufacturers are experiencing weaker profitability due to declining investment returns from joint ventures and challenges in achieving scale effects in the new energy vehicle sector [3] - Many state-owned enterprises are actively deepening strategic cooperation with Huawei to facilitate their transition towards smart and electric vehicle production [3] - The domestic automotive market is undergoing structural adjustments, leading to decreased profitability in the fuel vehicle segment [3]

Group 1: Private Car Manufacturers - Private car manufacturers exhibit strong profit resilience, driven by high-end breakthroughs, increased export ratios, and scale effects in the new energy vehicle sector [1] - Key players like BYD and Geely are expected to lead the push for advanced driver assistance systems by 2025, capitalizing on their scale and industry advantages [1] - The profitability of major private car manufacturers is improving, with Seres benefiting from the popularity of its AITO series and Great Wall Motors leveraging its core brands like Tank and pickup trucks [1] Group 2: New Forces in the Automotive Industry - New forces in the automotive sector are facing increased urgency to achieve self-sustainability, with companies like Li Auto maintaining robust profitability while others like Leap Motor and Xpeng show significant improvements in gross margins [2] - The upcoming product launches in 2025 are crucial for these new entrants to expand their growth potential, with Li Auto focusing on pure electric models and Xpeng enhancing its product matrix with range-extended models [2] - The financing environment and valuation levels for new forces have changed significantly since their initial public offerings, necessitating a quicker path to self-sufficiency [2] Group 3: State-Owned Car Manufacturers - State-owned car manufacturers are experiencing weaker profitability due to declining investment returns from joint ventures and challenges in achieving scale effects in the new energy vehicle market [3] - Many state-owned enterprises are actively deepening strategic partnerships with Huawei to facilitate their transition towards smart and electric vehicle production [3] - The domestic automotive market's structural adjustments have led to decreased profitability in the traditional fuel vehicle segment, adding to the pressures faced by state-owned manufacturers [3]

Group 1 - Hong Kong chip stocks continue to decline, with Horizon Robotics (09660.HK) dropping over 4.3% [1] - Jingmen Semiconductor (02878.HK) fell more than 2.2% [1] - ASMPT (00522.HK) and SMIC (00981.HK) both experienced declines of over 1% [1]

Market Overview - The Hong Kong stock market opened lower, with the Hang Seng Index down 0.59% at 24,223.12 points, the Hang Seng Tech Index down 1.13% at 5,389.56 points, and the National Enterprises Index down 0.78% at 8,796.99 points [1] - Major tech stocks generally declined, with Alibaba down 2.28%, JD Group down 1.79%, and Xiaomi down 1.11%. However, Netease rose by 1.05% [1] Company News - XPeng Motors reported that its delivery volume has exceeded 30,000 units for seven consecutive months as of 2025 [2] - Morgan Stanley upgraded the rating of Wei Long Delicious to "Overweight" [3] - Junshi Biosciences received a clinical trial application acceptance notice from the National Medical Products Administration for JT118, aimed at preventing monkeypox virus infection [3] - Vanke Enterprise sold 30.1 million A-shares, raising a total of RMB 198 million [4] - Horizon Robotics plans to issue 681 million shares, aiming to raise approximately HKD 4.674 billion, at a discount of about 6.85% from the previous closing price [4] Institutional Insights - Guotai Junan noted that the narrative of asset revaluation in China has gained traction this year, with the Hong Kong stock market showing a volatile upward trend, although valuations remain relatively low. Future trade environments may disrupt the market, but domestic policy efforts could drive fundamental recovery [5] - CITIC Securities reported that Hong Kong stocks saw a 3.4% year-on-year revenue increase and an 8.5% profit increase in 2024, indicating a significant improvement compared to 2023. The performance of technology and finance sectors was particularly strong, while the real estate and some consumer-related companies still showed weak performance [6]

Investment Rating - The report maintains a "Buy" rating for the company, citing its leading position in the domestic intelligent driving solutions market and strong growth potential [4][6]. Core Insights - The company has transformed into a leading provider of intelligent driving solutions over the past decade, focusing on full-scene intelligent driving solutions and achieving significant revenue growth from 470 million RMB in 2021 to 2.384 billion RMB in 2024, with a CAGR of 72.2% [1][39]. - The industry is experiencing a shift towards "intelligent driving equity," with major automakers like BYD and Geely accelerating their strategies, indicating a potential inflection point for high-level intelligent driving penetration in 2025 [2][48]. - The company has established a comprehensive technology stack covering L2 to L4 intelligent driving chip solutions, with over 310 models targeted by the end of 2024, and aims to leverage its performance and cost advantages to expand market share [3][4]. Summary by Sections Company Overview - The company has developed a full-stack product portfolio that includes both automotive and non-automotive solutions, with automotive solutions accounting for 97% of its revenue in 2024 [29][45]. - The automotive solutions include product solutions and licensing services, with the latter contributing 69.1% of the revenue, indicating a strong focus on software and IP licensing [29][39]. Industry Analysis - The intelligent driving market is expected to see accelerated penetration, with 2025 projected as the year of "intelligent driving equity," driven by decreasing costs and increasing availability of high-level driving features across various price segments [2][48]. - The report highlights the importance of third-party suppliers in the intelligent driving ecosystem, as they can provide scalable solutions to automakers, which face high barriers to self-development in this complex field [2][12]. Financial Forecast - The company is projected to achieve revenues of 3.603 billion RMB in 2025, 5.264 billion RMB in 2026, and 7.645 billion RMB in 2027, with corresponding price-to-sales ratios of 25, 17, and 12 times, respectively [4][5].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its future performance [4][6]. Core Insights - The company is positioned as a leading provider of domestic intelligent driving solutions, having undergone significant transformation over the past decade. It has established a comprehensive product portfolio that includes both automotive and non-automotive solutions, with a strong focus on intelligent driving technology [1][15]. - The intelligent driving industry is expected to accelerate its penetration into mainstream markets, with 2025 projected to be a pivotal year for "intelligent driving equality." Major automotive manufacturers are increasingly adopting intelligent driving strategies, which will create opportunities for leading suppliers [2][48]. - The company has built a robust ecosystem that empowers partners in the intelligent driving space, leveraging its complete technology stack that spans algorithms, specialized processing architectures, and development tools [3][4]. Summary by Sections Company Overview - The company has evolved into a key player in the intelligent driving sector, providing comprehensive advanced driver assistance systems (ADAS) and high-level autonomous driving (AD) solutions. It has a significant market share in the domestic market, exceeding 40% in the advanced driving assistance segment [15][18]. - The company has established a large and high-quality customer base, with over 310 models targeted for production by the end of 2024, reflecting its strong market presence [29][39]. Industry Insights - The intelligent driving market is witnessing a shift towards affordability, with traditional manufacturers like BYD and Geely launching strategies to democratize intelligent driving technology. This trend is expected to reshape the industry landscape [2][48]. - The report highlights the importance of third-party suppliers in the intelligent driving ecosystem, as they can provide scalable solutions to traditional manufacturers, thereby accelerating the adoption of advanced driving technologies [12][13]. Financial Performance - The company has experienced significant revenue growth, with a compound annual growth rate (CAGR) of 72.2% from 2021 to 2024, increasing from 467 million RMB to 2.384 billion RMB. The automotive solutions segment accounts for 97% of total revenue, with a strong contribution from licensing and service fees [39][46]. - The gross margin has remained stable, with an increase to 79% in 2024, driven by the higher proportion of high-margin licensing and service revenues [39][46]. Future Outlook - The company is expected to continue expanding its market share in the intelligent driving sector, with projected revenues of 3.603 billion RMB, 5.264 billion RMB, and 7.645 billion RMB for 2025, 2026, and 2027, respectively [4][5].

Core Viewpoint - The report from GF Securities highlights the significant stock price increase of Horizon Robotics (09660) by 11.4% after being included in the Hong Kong Stock Connect, suggesting a potential timing opportunity based on capital flow [1] Group 1: Market Behavior Post Inclusion - After being included in the Stock Connect, leading companies often experience immediate capital inflow, resulting in stock price increases, with the steepest inflow observed in the initial days [2] - However, the short-term price increase is not universally applicable to all companies, indicating that this is not a straightforward quantitative timing strategy [2] - This strategy is more effective for high-quality leading companies that have been thoroughly researched and recognized by active funds, which are likely to buy quickly after inclusion [2] Group 2: Future Inclusion Candidates - There are two fixed "inclusion" periods each year: the first week of March and September, with the next inclusion effective the following Monday, primarily based on the company's inclusion in the Hang Seng Composite Index [3] - Additionally, there are quarterly rapid inclusions for newly listed companies, which are subject to specific criteria such as average market capitalization [3][4] - Potential companies for future inclusion include: - June 6: Bruker, Mixue Group, and Gu Ming [5][6] - Late June: CATL and Hengrui Medicine [5][6] - September 5: Companies like Conant Optical and others [5][6]

港股芯片股部分走强，上海复旦(01385.HK)涨超6%，地平线机器人(09660.HK)涨超5%，华虹半导体 (01347.HK)涨超2%，中芯国际(00981.HK)涨超1%。 ...

Market Overview - On May 28, the Hang Seng Index fell by 0.53%, closing at 23,258.31 points, while the net inflow of southbound funds through the Stock Connect amounted to HKD 3.578 billion [1][4] - The total trading volume for the Stock Connect on the same day was HKD 75.205 billion, with a net buying of HKD 3.578 billion [1] Stock Performance - In the Shanghai Stock Connect, the total trading volume was HKD 49.972 billion with a net buying of HKD 3.924 billion, while in the Shenzhen Stock Connect, the trading volume was HKD 25.233 billion with a net selling of HKD 0.346 billion [1] - The most actively traded stock in the Shanghai Stock Connect was Xiaomi Group-W, with a trading volume of HKD 4.316 billion, followed by Pop Mart and Alibaba-W with trading volumes of HKD 2.529 billion and HKD 1.850 billion, respectively [1][3] - In terms of net buying, Meituan-W led with a net inflow of HKD 0.780 billion, despite its closing price dropping by 0.53%. Xiaomi Group-W had the highest net selling of HKD 0.716 billion, closing up by 0.39% [1][3] Shenzhen Stock Connect Highlights - In the Shenzhen Stock Connect, Xiaomi Group-W also topped the trading volume with HKD 1.977 billion, followed by Alibaba-W and Pop Mart with HKD 1.163 billion and HKD 1.054 billion, respectively [2] - Meituan-W recorded the highest net buying in the Shenzhen market with HKD 0.295 billion, while Hang Seng China Enterprises had the largest net selling of HKD 0.430 billion, closing down by 0.32% [2]

Core Viewpoint - Horizon Robotics has gained significant market attention and investor interest following its inclusion in the Hong Kong Stock Connect, leading to a substantial increase in its stock price and market capitalization [1][2]. Group 1: Market Performance - Following the adjustment of the Hong Kong Stock Connect on May 26, eligible mainland investors can directly trade Horizon Robotics' shares, resulting in an 11.39% stock price increase on May 27, with a market capitalization exceeding HKD 104.5 billion [1]. - The company has been recognized as the third-largest IPO and the largest technology IPO of the year after its listing in October 2024, with its stock price more than doubling since the initial offering [3]. Group 2: Business Growth and Financials - In the fiscal year 2024, Horizon Robotics achieved a revenue of CNY 2.384 billion, representing a year-on-year growth of 53.6%, and a gross profit of CNY 1.841 billion, up 68.3% [2]. - The adjusted operating loss narrowed from CNY 1.687 billion in 2023 to CNY 1.495 billion in 2024, indicating improved sustainable operating capabilities [2]. Group 3: Strategic Partnerships and Market Position - The company has initiated mass production of its high-performance chip, the Journey 6P, and launched the High-Performance Urban Driving System (HSD), establishing partnerships with major automotive manufacturers like Chery and Volkswagen [2]. - Horizon Robotics has formed strategic collaborations with global Tier 1 suppliers such as Bosch, Denso, and Continental, enhancing its competitive edge in the advanced driving assistance solutions market [2]. Group 4: Future Outlook - The company anticipates a pivotal turning point for smart driving by 2025, driven by technological breakthroughs, regulatory support, and increased consumer willingness [3]. - Horizon Robotics plans to continue investing in research and development to enhance its smart driving solutions and maintain its leading position in the industry [3].