Investment Rating - The report suggests a focus on domestic strong alpha manufacturers such as BYD, Geely, and Xpeng, as well as companies involved in intelligent trends like Jianghuai Automobile and Seres, recommending companies like Li Auto, Kobot, Desay SV, and Jingwei Hengrun [2][3] Core Views - The automotive industry shows significant differentiation in mid-term reports, with the complete vehicle sector facing profit pressure due to intensified competition, while the parts sector exhibits positive signals driven by new business initiatives [3][4] - Investment should continue to focus on two main lines: technology (mainly intelligentization and robotics) and overseas expansion [3][4] Summary by Relevant Sections 1. Half-Year Report Summary - The automotive industry is experiencing notable differentiation in performance, with the complete vehicle sector under pressure from competition, while the parts sector shows positive signals due to new business initiatives [3] 2. Company Updates - **Sensata Group**: Actively expanding into robotics, low-altitude economy, and liquid cooling, with a dedicated team of 60-80 people [4] - **Kobot**: Expected to achieve revenue of 11-11.5 billion yuan and net profit of 1.45-1.5 billion yuan in the coming year, with strong growth potential in domain control [6] - **Fuda Co., Ltd.**: Recognized for its mature production processes in robotics, with a dual layout in screw and cycloidal gear reducers [7] - **Longsheng Technology**: Anticipates a turning point in the second half of the year, with significant value per vehicle for the Seres M7 [8] - **Baolong Technology**: Transitioning from automotive sensors to robotics, with a projected turning point in the third quarter [8] - **Jianghuai Automobile**: Transitioning to high-end intelligent vehicles, with projected revenue of 42.2 billion yuan in 2024 and a significant improvement in profitability expected with the launch of the high-end model [9][10] 3. Investment Recommendations - Focus on domestic strong alpha manufacturers and companies with strong performance growth, robotics layout, or overseas expansion capabilities [2][3] - Recommended companies include Fuyou Glass, New Spring Co., Ltd., Fuda Co., Ltd., and others, with a focus on Sensata Group and Top Group [2][3]

Investment Rating - The report rates the automotive industry as "Overweight," indicating that it is expected to outperform the overall market [2][3]. Core Insights - The automotive industry is experiencing significant divergence in performance, with the vehicle manufacturing sector facing profit pressure due to intensified competition. In contrast, the auto parts sector shows positive signals driven by new business initiatives, particularly in smart technology and robotics [3][4]. - The report emphasizes the importance of focusing on technological advancements, particularly in smart technology and international expansion, as key investment themes moving forward [3][4]. Summary by Relevant Sections 1. Half-Year Report Summary - The automotive industry shows a marked divergence in performance, with vehicle manufacturers under pressure from competition, while the auto parts sector benefits from new business initiatives [3]. - Investment focus should remain on technology, particularly in smart technology and robotics, as well as international expansion [3]. 2. Company Updates - **Sensata Technologies**: Actively expanding into robotics, low-altitude economy, and liquid cooling, with a dedicated team of 60-80 people for robotics [4]. - **Koboda**: Expected to report revenues of 11-11.5 billion yuan and net profits of 1.45-1.5 billion yuan in the upcoming year, with strong growth potential in domain control [6]. - **Fuda**: Recognized for its dual layout in screw and cycloidal gear reducers, with mature mass production processes [7]. - **Longsheng Technology**: Anticipates a turning point in the second half of the year, with significant value increase in products for the Seris M7 [9]. - **Baolong Technology**: Transitioning from automotive sensors to robotics, with expected growth in the third quarter [9]. 3. Jianghuai Automobile - Jianghuai Automobile is transitioning from traditional manufacturing to high-end intelligent vehicle production, with projected revenues of 42.2 billion yuan and a net loss of 1.784 billion yuan in 2024 [10]. - The company is collaborating with Huawei to launch the high-end model "Zun Jie S800," targeting luxury markets [11]. - Expected sales for the Zun Jie S800 are projected at 12,099 units in 2025, stabilizing at 20,000 units annually thereafter, indicating significant profit recovery potential [11]. 4. Investment Recommendations - The report recommends focusing on domestic leading manufacturers such as BYD, Geely, and Xpeng, as well as companies involved in smart technology like Jianghuai Automobile and Seris [2][3]. - It also suggests monitoring state-owned enterprise consolidations and parts manufacturers with strong growth prospects, such as Fuyao Glass and New Spring [2][3].

Core Insights - In August 2025, the automotive production and sales reached 2.815 million and 2.857 million units respectively, with month-on-month growth of 8.7% and 10.1%, and year-on-year growth of 13% and 16.4% [2][3] - For the week of September 1-7, 2025, retail sales of passenger cars were 304,000 units, a year-on-year decrease of 10% and a month-on-month decrease of 4%, while wholesale sales were 307,000 units, a year-on-year decrease of 5% but a month-on-month increase of 9% [2][3] Weekly Market Performance - During the week of September 8-12, 2025, the CS automotive index rose by 0.21%, while the CS passenger vehicle index fell by 0.37%, and the CS commercial vehicle index decreased by 1.06% [2] - The CS automotive parts index increased by 0.72%, and the CS automotive sales and service index rose by 4.23%, while the electric vehicle index fell by 0.08% and the smart vehicle index increased by 1.36% [2] - The Shanghai Composite Index rose by 1.66% and the CSI 300 Index increased by 1.93%, indicating that the CS automotive index underperformed these indices by 1.72 percentage points and 1.45 percentage points respectively, with a year-to-date increase of 23.76% [2] Cost Tracking and Inventory - As of September 10, 2025, the prices of float glass, aluminum ingots, and zinc ingots changed year-on-year by -9.4%, +7.1%, and -5.2% respectively, and month-on-month by -6%, +0.5%, and -1.1% [3] - The inventory warning index for automotive dealers in August was 57.0%, showing a year-on-year increase of 0.8 percentage points and a month-on-month decrease of 0.2 percentage points [3] Market Focus - Key developments include partnerships in autonomous driving, such as Horizon Robotics collaborating with Hello to accelerate Robotaxi deployment, and the launch of new models like the all-new Wanjie M7, which saw over 100,000 pre-orders within an hour [3] - The Ministry of Industry and Information Technology and other departments issued a joint plan for stabilizing growth in the automotive industry for 2025-2026 [3] Investment Recommendations - In the medium to long term, the focus is on opportunities in incremental components driven by the rise of domestic brands and electric intelligence [4] - Recommended companies include Leap Motor, JAC Motors, and Geely for strong new product cycles, and companies like Kobot, Huayang Group, and Junsheng Electronics for smart technology [4]

Core Insights - Baolong Technology has secured project designations for wheel speed sensors and height sensors from leading domestic independent brands [1] - The wheel speed sensors will be mass-produced for 19 vehicle models by March 2026, while the height sensors will be mass-produced for 2 projects by December 2025 [1] - Both products have a lifecycle of 5 years [1]

Group 1 - The company Baolong Technology (603197.SH) has been mass-producing 77GHz millimeter-wave radar for several years [1] - The 4D imaging radar is currently in the process of securing fixed-point projects with two clients, with expected results in Q4 [1] - The company has made technological arrangements in distributed satellite radar and has completed the A sample, but has not yet initiated the commercialization process [1]

Core Viewpoint - Baolong Technology (603197.SH) is currently developing robotaxi cameras for leading domestic independent brand clients and is in the sample delivery stage [1] Group 1 - The company is focusing on the development of robotaxi cameras [1] - The current status of the project is in the sample delivery phase [1] - The target clients are major independent brands in the domestic market [1]

Core Viewpoint - Baolong Technology (603197.SH) is exploring opportunities in the robotics sector, particularly in sensor technology, which aligns with its main business in automotive electronic sensors [1] Group 1: Company Strategy - The company acknowledges the potential for expansion in the robotics field, specifically related to sensors [1] - Currently, the company does not possess core technologies or patents for humanoid robots but plans to invest resources in this area [1] - The goal is to identify suitable sensor applications and seek collaboration opportunities in the robotics sector [1]

Group 1 - The company Baolong Technology (603197.SH) has been mass-producing 77GHz millimeter-wave radar for several years [1] - The 4D imaging radar is currently in the process of securing fixed-point projects with two clients, with expected results in Q4 [1] - The company has made technological arrangements in distributed satellite radar and has completed the A sample, but has not yet initiated the commercialization process [1]

Company Overview - Baolong Technology Co., Ltd. is located at 5500 Shen Zhuang Highway, Songjiang District, Shanghai, established on May 20, 1997, and listed on May 19, 2017. The company specializes in the research, production, and sales of automotive intelligence and lightweight products [1] - The main business revenue composition includes: TPMS and accessories and tools (30.55%), automotive metal pipe fittings (20.61%), intelligent suspension (14.14%), others (11.61%), valve stems and accessories (11.11%), sensors (9.47%), and other (supplementary) (2.51%) [1] Stock Performance - As of September 16, Baolong Technology's stock price increased by 2.00%, reaching 39.76 CNY per share, with a trading volume of 205 million CNY and a turnover rate of 2.44%, resulting in a total market capitalization of 8.494 billion CNY [1] - Year-to-date, Baolong Technology's stock price has risen by 6.77%, with a decline of 1.05% over the last five trading days, a decrease of 7.43% over the last 20 days, and an increase of 4.14% over the last 60 days [1] Financial Performance - For the first half of 2025, Baolong Technology achieved operating revenue of 3.95 billion CNY, representing a year-on-year growth of 24.06%. However, the net profit attributable to the parent company was 135 million CNY, a year-on-year decrease of 9.15% [2] - Since its A-share listing, Baolong Technology has distributed a total of 704 million CNY in dividends, with 354 million CNY distributed over the past three years [3] Shareholder Information - As of June 30, 2025, the number of shareholders of Baolong Technology was 22,700, an increase of 30.40% compared to the previous period. The average number of circulating shares per person was 9,394, a decrease of 23.31% [2] - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited holds 1.7708 million shares, a decrease of 1.3537 million shares compared to the previous period [3]

Group 1 - Shanghai Baolong Automotive Technology (Anhui) Co., Ltd. has obtained a patent for a "vibration-damping pad with a bulge structure and gas supply unit," with the authorization announcement number CN 223318342 U, and the application date is November 2024 [1] - The patent describes a vibration-damping pad that includes a body and a metal sleeve, where the body is tubular and features installation grooves on its outer cylindrical surface [1] - The metal sleeve is coaxially inserted through the body, equipped with a protruding structure on its outer cylindrical surface, and the inner cylindrical surface of the body has positioning grooves that fit with the protruding structure [1] Group 2 - The design includes a limiting edge at the lower end of the metal sleeve, ensuring that the protruding structure is securely locked within the body, addressing the issue of the metal sleeve easily falling off [1] - Shanghai Baolong Automotive Technology (Anhui) Co., Ltd. was established in 2018 and is located in Hefei City, primarily engaged in technology promotion and application services [1] - The company has a registered capital of 1,298 million RMB and has invested in 20 enterprises, participated in 12 bidding projects, and holds 134 patent records along with 13 administrative licenses [1]