Investment Rating - The report maintains an "Overweight" rating for the computer sector, recommending stocks such as Han's Information, Rilian Technology, Kingsoft Office, Hehe Information, Hikvision, Newland, Daotong Technology, and Haiguang Information, with Zhongke Shuguang as a related stock [3][4]. Core Insights - The domestic AI large model industry is experiencing a critical phase of accelerated technological productization and deepening capital market engagement. Volcano Engine released the Doubao large model 1.8 and the video generation model Seedance 1.5 Pro, achieving significant technological breakthroughs and reducing enterprise usage costs through innovative business models [3][4]. - The Ministry of Industry and Information Technology has issued the first L3 level autonomous driving vehicle permits, marking a transition to "conditional commercial application" for autonomous driving in China. This includes specific models from Changan and BAIC Arcfox, with speed limits set for initial operations [3][4]. - Domestic GPU companies are actively pursuing capital market opportunities, with TianShu ZhiXin and BiRan Technology having passed listing hearings, aiming to raise funds for advanced chip development and market expansion. The successful listings of MoEr Thread and MuXi shares on the STAR Market have demonstrated strong market interest in domestic high-end chip sectors [3][4]. Summary by Sections AI Large Model Development - Volcano Engine's Doubao large model 1.8 and Seedance 1.5 Pro have entered the global first tier in multi-modal and intelligent capabilities, with daily token processing exceeding 50 trillion [3][4]. - The listings of Zhizhu AI and MiniMax on the Hong Kong Stock Exchange are expected to provide quantifiable secondary market valuation benchmarks for the large model industry [3][4]. Autonomous Driving - The issuance of L3 level permits signifies a cautious regulatory approach prioritizing safety, with vehicles' operational responsibilities assigned to manufacturers rather than drivers [3][4]. - Initial sales of these vehicles will be limited to designated operators, providing essential practical data for refining technical standards and legal frameworks [3][4]. GPU Market Dynamics - Domestic GPU firms are intensifying their efforts to enter the capital market, with TianShu ZhiXin planning to raise $300 to $400 million and BiRan Technology also pursuing a listing [3][4]. - The successful market entries of MoEr Thread and MuXi have highlighted the strong investor interest in the domestic semiconductor industry, particularly in high-end chip design [3][4].

Core Viewpoint - Daotong Technology has submitted an application for listing on the Hong Kong Stock Exchange, with CICC as the sole sponsor [1] Company Overview - Daotong Technology is a leading provider of intelligent vehicle diagnostics and smart charging solutions, ranked first globally in intelligent vehicle diagnostics by revenue for 2022, 2023, and 2024, with a market share increase from 9.1% in 2022 to 11.1% in 2024 [2] - The company is the largest Chinese smart charging solution provider by overseas revenue in 2024 and the fourth largest in North America [2] - With over 20 years of industry experience, Daotong has developed a comprehensive solution portfolio based on strong technical capabilities and synergy [2] Sales Network - The company has established a global sales network covering approximately 100 countries and regions, collaborating with over 800 distributors [3] - Daotong directly serves top energy companies, mainstream charging facility operators, automotive diagnostic equipment distributors, and Fortune 500 companies [3] - The business model combines one-time hardware revenue with ongoing software revenue, creating a scalable and sustainable approach [3] Financial Data - Revenue for the fiscal years 2022, 2023, 2024, and the six months ending June 30, 2025, is approximately CNY 2.266 billion, CNY 3.251 billion, CNY 3.932 billion, and CNY 2.345 billion respectively [4] - Net profit for the same periods is approximately CNY 81.609 million, CNY 140 million, CNY 560 million, and CNY 455 million respectively [5] - Gross profit for these periods is approximately CNY 1.264 billion, CNY 1.703 billion, CNY 2.082 billion, and CNY 1.260 billion respectively [6] Industry Overview - Intelligent vehicle diagnostics provide vehicle status assessment, fault detection, and performance analysis, becoming essential for safe and environmentally friendly vehicle operation [7] - The global intelligent vehicle diagnostics market is projected to grow from approximately USD 2.809 billion in 2020 to about USD 3.832 billion by 2024, with a compound annual growth rate (CAGR) of 8.1% [8] - By 2030, the market size is expected to reach approximately USD 8.004 billion, with a CAGR of 13.1% from 2024 to 2030 [8] - The share of software solutions in the industry is expected to rise significantly, from 16.8% in 2024 to 26.7% by 2030, indicating a shift towards integrated hardware, software, and service solutions [8]

Core Viewpoint - Shenzhen Daotong Technology Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange, with CICC as its sole sponsor [1] Company Overview - Daotong Technology is a leading provider of intelligent vehicle diagnostic and smart charging solutions, ranked first globally in intelligent vehicle diagnostic solutions by revenue for 2022, 2023, and 2024, with a market share increase from 9.1% in 2022 to 11.1% in 2024 [4] - The company is also the largest Chinese smart charging solution provider by overseas revenue in 2024 and the fourth largest in North America [4] - With over 20 years of industry experience, the company has developed a comprehensive solution portfolio based on strong technical capabilities and synergy [4] - The company has launched an embodied intelligent cluster solution that enables users to collaborate multiple intelligent agents through its self-developed AI application platform [4] Sales Network - Daotong Technology has established a global sales network covering approximately 100 countries and regions, collaborating with over 800 distributors to expand market coverage and enhance penetration [5] - The company focuses on customer needs, providing integrated hardware and software solutions, combining one-time hardware revenue with recurring software revenue to create a scalable and sustainable business model [5] Financial Data - The company recorded revenues of approximately RMB 2.27 billion, RMB 3.25 billion, RMB 3.93 billion, and RMB 2.35 billion for the fiscal years 2022, 2023, 2024, and the six months ending June 30, 2025, respectively [7] - The net profit for the same periods was approximately RMB 81.61 million, RMB 140 million, RMB 560.34 million, and RMB 454.64 million [7] - Gross profit figures were approximately RMB 1.26 billion, RMB 1.70 billion, RMB 2.08 billion, and RMB 1.26 billion for the respective years [8] Industry Overview - The global intelligent vehicle diagnostic industry market size increased from approximately USD 2.81 billion in 2020 to about USD 3.83 billion in 2024, with a compound annual growth rate (CAGR) of 8.1% [9] - By 2030, the market size is expected to reach approximately USD 8.00 billion, with a projected CAGR of 13.1% from 2024 to 2030 [9] - In 2024, North America, Europe, China, and other regions are expected to account for 36.5%, 39.3%, 12.1%, and 12.2% of the market, respectively [9] - The penetration of AI intelligent agents and remote diagnostic services is expected to increase, with software solutions' share projected to rise from 16.8% in 2024 to 26.7% by 2030 [10]

Core Viewpoint - Shenzhen Daotong Technology Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange, with China International Capital Corporation as its sole sponsor [1]. Company Overview - Daotong Technology is a leading provider of intelligent vehicle diagnostic and smart charging solutions. According to Frost & Sullivan, the company is the world's largest provider of intelligent vehicle diagnostic solutions by revenue for 2022, 2023, and 2024, with a market share increasing from 9.1% in 2022 to 11.1% in 2024 [4]. - The company has over 20 years of industry experience and offers a comprehensive solution portfolio based on strong technical capabilities, focusing on AI applications and technology advancements [4]. Financial Data - Revenue for the fiscal years 2022, 2023, and 2024, as well as for the six months ending June 30, 2025, is approximately RMB 2.27 billion, RMB 3.25 billion, RMB 3.93 billion, and RMB 2.35 billion respectively [7]. - Gross profit for the same periods is approximately RMB 1.26 billion, RMB 1.70 billion, RMB 2.08 billion, and RMB 1.26 billion respectively [8]. - Net profit for the fiscal years 2022, 2023, and 2024, as well as for the six months ending June 30, 2025, is approximately RMB 81.61 million, RMB 140 million, RMB 560 million, and RMB 454.64 million respectively [7]. Industry Overview - The global intelligent vehicle diagnostic market is projected to grow from approximately USD 2.81 billion in 2020 to about USD 3.83 billion by 2024, with a compound annual growth rate (CAGR) of 8.1%. By 2030, the market size is expected to reach around USD 8.00 billion, with a CAGR of 13.1% from 2024 to 2030 [9]. - The importance of intelligent vehicle diagnostics is increasing due to trends in electrification and smart technology, addressing issues such as poor product compatibility and limited detection coverage in traditional vehicle diagnostics [8][9]. - The industry is evolving from hardware-centric systems to integrated solutions that combine hardware, software, and services, with software solutions expected to increase from 16.8% in 2024 to 26.7% by 2030 [10].

Core Viewpoint - Shenzhen Daotong Technology Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange, with CICC as its sole sponsor, positioning itself as a leading provider of intelligent vehicle diagnostic and smart charging solutions [1]. Group 1: Company Overview - Daotong Technology is recognized as the world's largest provider of intelligent vehicle diagnostic solutions based on revenue projections for 2022, 2023, and 2024, with a market share increase from 9.1% in 2022 to 11.1% in 2024 [1]. - The company is also the largest Chinese provider of smart charging solutions in overseas markets, and it ranks as the fourth largest provider of smart charging solutions in North America by 2024 revenue [1]. Group 2: Market Position - According to Frost & Sullivan, Daotong Technology's market share in intelligent vehicle diagnostics is expected to grow significantly, indicating strong competitive positioning in the industry [1]. - The company is projected to maintain its leadership in the smart charging solutions sector, particularly in North America, where it is identified as the largest Chinese player [1].

Core Viewpoint - Shenzhen Daotong Technology Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange, with CICC as its sole sponsor, positioning itself as a leading provider of intelligent vehicle diagnostics and smart charging solutions [1] Group 1: Company Overview - Daotong Technology is recognized as the world's largest provider of intelligent vehicle diagnostic solutions based on revenue projections for 2022, 2023, and 2024, with a market share increase from 9.1% in 2022 to 11.1% in 2024 [1] - The company is also the largest Chinese provider of smart charging solutions in overseas markets based on 2024 revenue [1] Group 2: Market Position - In North America, Daotong Technology ranks as the fourth largest provider of smart charging solutions based on 2024 revenue and is the largest Chinese provider in that region [1]

Core Viewpoint - Daotong Technology has submitted an application for listing on the Hong Kong Stock Exchange, with CICC as its sole sponsor, positioning itself as a leading provider of intelligent vehicle diagnostics and smart charging solutions [1] Group 1: Company Overview - Daotong Technology is recognized as the world's largest provider of intelligent vehicle diagnostic solutions based on revenue projections for 2022, 2023, and 2024, with a market share increase from 9.1% in 2022 to 11.1% in 2024 [1] - The company is also the largest Chinese provider of smart charging solutions in overseas markets by 2024 revenue [1] Group 2: Market Position - In North America, Daotong Technology ranks as the fourth largest provider of smart charging solutions by 2024 revenue and is the largest Chinese provider in that region [1]

Core Viewpoint - Shenzhen Daotong Technology Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, with China International Capital Corporation as its sole sponsor, positioning itself as a leading provider of intelligent vehicle diagnostic and smart charging solutions [1] Group 1: Company Overview - Daotong Technology is recognized as the world's largest provider of intelligent vehicle diagnostic solutions based on revenue projections for 2022, 2023, and 2024, with a market share increase from 9.1% in 2022 to 11.1% in 2024 [1] - The company is also identified as the largest Chinese smart charging solution provider based on overseas revenue projections for 2024, and ranks as the fourth largest smart charging solution provider in North America [1] Group 2: Market Position - According to Frost & Sullivan, Daotong Technology's market share in intelligent vehicle diagnostics is expected to grow significantly, indicating strong competitive positioning in the industry [1] - The company's strategic focus on both domestic and international markets highlights its potential for growth and expansion in the smart charging sector [1]

Core Insights - Global technology investment enthusiasm remains high in 2025, but there is a structural differentiation characterized by "strong computing power, weak applications" [3] - Major global tech giants are significantly increasing capital expenditures, benefiting upstream computing chips and supporting hardware, while the computer/software sector faces three pressures: 1) Software companies' performance growth is overall lower than that of the computing chain; 2) Software company valuations are not cheap compared to hardware; 3) Concerns about "large models consuming software" continue to grow [3] - By Q3 2025, domestic public funds are underweight in the computer sector by 1.7 percentage points [10] Market Review: AI Applications' Concerns and Breakthroughs - The performance of the computer/software sector in both China and the US has been weak, with software and service-focused indices significantly underperforming hardware and semiconductor indices [5] - As of December 12, 2025, the A-share computer index has risen by 15.15%, lagging behind the 49.16% increase in the ChiNext index and the 45.90% increase in the electronic index [5] - In the US market, the IGV software index has only increased by 7.84%, underperforming the 22.52% rise in the Nasdaq Composite and the 39.75% increase in the SOXX semiconductor index [5] Opportunities in Chinese AI Applications 1. Deepening Industrial Applications - China possesses the world's only complete industrial system, providing high-value real-world data, application scenarios, and energy supply, which will foster diverse agent forms [27] - The construction of a modern industrial system is prioritized in the "14th Five-Year Plan," with expectations for intensive policy support for "Artificial Intelligence+" during this period [39] 2. Expanding Overseas - AI application teams in China can leverage "extreme efficiency + global pricing" arbitrage, with the engineer dividend in China continuing to expand [3] - Many computer companies prioritize overseas strategies, with overseas revenue growth generally outpacing domestic growth [64] 3. Reconstructing Edge AI - Internet giants and AI startups are actively exploring edge forms in the AI era, integrating deeply with existing consumer electronics and developing new AI-native hardware [3] - The shipment volume of related products is expected to have high growth potential as hardware and algorithms mature [3] Investment Recommendations - Focus on companies with industry know-how and data for industrial empowerment, such as Hikvision, Dahua Technology, and Han's Laser [3] - Prioritize AI application companies with high overseas revenue proportions, including Foxit Software and Kingsoft Office [3] - Pay attention to AI hardware brands and algorithm vendors benefiting from the emergence of blockbuster products, such as Rainbow Soft and iFlytek [3]

Core Viewpoint - Daotong Technology has submitted an application for H-share listing on the Hong Kong Stock Exchange, aiming to leverage its position as a leading provider of intelligent vehicle diagnostics and smart charging solutions, focusing on AI-driven integration of hardware and software to meet evolving customer needs [1] Group 1: Business Overview - Daotong Technology is a leading provider of intelligent vehicle diagnostics and smart charging solutions, with a strong emphasis on technological innovation and exploration of embodied intelligent clusters [1] - The company's revenue from intelligent vehicle diagnostics, smart charging, and other services accounted for 76.4%, 22.5%, and 1.1% respectively in the first half of 2025 [1] - Daotong Technology is the global leader in intelligent vehicle diagnostics, with market share increasing from 9.1% in 2022 to 11.1% in 2024 [1] Group 2: Financial Performance - Revenue for Daotong Technology during the reporting period (2022-2025) was as follows: 2.266 billion RMB in 2022, 3.251 billion RMB in 2023, 3.932 billion RMB in 2024, and 2.345 billion RMB in the first half of 2025 [1] - Profit figures for the same period were 82 million RMB, 140 million RMB, 560 million RMB, and 455 million RMB respectively [1] - The overall gross margin fluctuated during the reporting period, recorded at 55.8%, 52.4%, 52.9%, and 53.7% [3] Group 3: Revenue Sources - Approximately 70% of Daotong Technology's revenue comes from overseas markets, primarily North America, which accounted for 46.4%, 52.3%, 50.7%, and 51.6% of total revenue during the reporting period [2][3] - Revenue from distributors constituted a significant portion of total income, with contributions of 90.9%, 84.5%, 83.5%, and 85.3% across the reporting periods [4] Group 4: Regulatory Issues - Daotong Technology faced regulatory scrutiny from the Shenzhen Securities Regulatory Bureau, which mandated corrective actions due to undisclosed related party transactions and other compliance issues [5][6] - Key executives, including the chairman and general manager, received warning letters for their responsibilities related to these compliance failures [5][6]