Investment Rating - The report maintains a "Buy" rating for the company with a target price of 152.49 CNY, based on a comparable company PE average valuation of 69 times for 2026 [3][6]. Core Insights - The company is expanding its automotive electronics business and accelerating its layout in smart ports and intelligent public transport [2]. - The earnings per share (EPS) forecast for 2025-2027 is adjusted to 0.30 CNY, 2.21 CNY, and 3.50 CNY respectively, reflecting slight adjustments in revenue, gross margin, and expense ratios [3]. - The company has reported a significant reduction in losses, with a net profit forecast of 36 million CNY in 2025, transitioning from losses of 217 million CNY in 2023 and 550 million CNY in 2024 [5][10]. Financial Performance Summary - Revenue is projected to grow from 4,678 million CNY in 2023 to 10,115 million CNY in 2027, with year-on-year growth rates of 16.3%, 18.5%, 24.4%, 22.8%, and 19.5% respectively [5][10]. - The company expects to achieve a gross margin of approximately 24.2% to 24.4% from 2025 to 2027, with a net profit margin improving from -4.6% in 2023 to 4.2% in 2027 [5][10]. - The net asset return (ROE) is anticipated to rise from -4.2% in 2023 to 8.2% in 2027, indicating a recovery in profitability [5][10]. Business Development and Strategy - The company is actively developing its smart driving business, with plans to mass-produce new products based on advanced chip technologies by the end of the year [9]. - Strategic partnerships are being formed to enhance domestic chip development, which is crucial for the company's platform development strategy [9]. - The company is also focusing on L4 autonomous driving technology, with products aimed at various sectors including logistics and public transport, indicating a broad market potential [9].

Core Viewpoint - The automotive industry is at a new crossroads in 2026, with the end of the electric vehicle (EV) boom and the rise of smart technology. Investment opportunities lie in commercial vehicles and two-wheeled vehicles, focusing on finding resilient alpha varieties and embracing the next industrial trends of smart technology and robotics/AIDC [4][10]. Group 1: Automotive Sector Investment Strategy - The automotive industry should reference the years 2011 and 2018 for strategic insights. The focus is on finding resilient alpha varieties and embracing the next industrial trends, particularly in smart technology and robotics/AIDC [4][10]. - The total domestic demand for passenger vehicles in 2026 is expected to be 22 million units, a decrease of 3.5% year-on-year, while the demand for new energy vehicles is projected to reach 13.2 million units, an increase of 6.4% [5][10]. - The wholesale sales of heavy trucks are forecasted to be 1.16 million units in 2026, with a year-on-year increase of 1.5%. Domestic sales are expected to decline by 5.5% to 770,000 units, while exports are projected to rise by 18.8% to 390,000-400,000 units [5][27]. Group 2: Key Investment Opportunities - In the bus sector, the top picks are Yutong Bus and Jinlong Automobile. For motorcycles, the preferred choices are Chunfeng Power and Longxin General. In the heavy truck sector, China National Heavy Duty Truck and Weichai Power are favored. For passenger vehicles, BYD is the primary choice, with Jianghuai Automobile as a secondary option. In the parts sector, Fuyao Glass, Xingyu Co., and Minth Group are recommended [6][10]. - The L4 RoboX investment opportunities focus on the B-end software sector over C-end hardware. Preferred stocks include XPeng Motors, Horizon Robotics, and others in the H-share market, while A-share selections include Qianli Technology and Desay SV [7][10]. - The robotics and AIDC investment opportunities are highlighted, with a focus on the upcoming Optimus V3 overseas and the rapid development of domestic robotics. Key selections include Top Group for robotics and liquid cooling, and Junsheng Electronics for robotics [7][10]. Group 3: Market Forecasts - The passenger vehicle market is expected to see a total sales volume of 22 million units in 2026, with a year-on-year decrease of 3.5%. New energy vehicle sales are projected to reach 13.2 million units, an increase of 6.4% [5][17]. - The heavy truck market is forecasted to have a wholesale volume of 1.16 million units in 2026, with domestic sales declining by 5.5% to 770,000 units, while exports are expected to rise by 18.8% [5][27]. - The bus sector is anticipated to maintain a strong export growth rate of over 30%, with domestic sales expected to reach 81,000 units, a year-on-year increase of 3% [5][32]. Group 4: Motorcycle Market Insights - The motorcycle industry is projected to have total sales of 19.38 million units in 2026, a year-on-year increase of 14%. The large-displacement motorcycle segment is expected to reach 1.26 million units, a 31% increase [5][34]. - Domestic sales of large-displacement motorcycles are expected to reach 430,000 units, a 5% increase, while exports are projected to be 830,000 units, a 50% increase [5][35]. Group 5: Future Trends and Innovations - The penetration rate of smart driving technology in new energy vehicles is expected to rise to 40% by 2026, with significant growth in the use of domestic chips [22][23]. - The heavy truck export market is expected to recover, with significant growth in regions such as Southeast Asia and Africa, driven by local infrastructure and mining demands [28][29].

Group 1 - The core viewpoint of the article is that Jingwei Hengrun has developed tangible products in the field of "industrial intelligence," moving beyond conceptual presentations [2] - The company has established two product lines: intelligent optical inspection systems and intelligent industrial robots [2]

Core Viewpoint - The company, Jingwei Hengrun, is focusing on self-developed power modules and is capable of integrating solutions based on customer platform needs, offering a range of products from power devices to complete system solutions [2] Group 1: Product Development - The company has completed a systematic product layout in the field of power electronics for electric vehicles, covering mainstream technology routes such as pure electric, range-extended, and distributed drive solutions [2] - The multi-in-one controller is designed for pure electric platforms, aiming to reduce system size and weight while enhancing power density through deep integration [2] - The range extender controller is specifically optimized for range-extended hybrid systems, focusing on improving generation efficiency, NVH (noise, vibration, and harshness), and emissions performance [2] - The dual electric control controller targets distributed drive architectures, allowing independent control of dual motors for precise torque distribution [2] Group 2: Integration and Delivery - The power electronics products utilize the company's self-developed power modules, facilitating continuous upgrades and large-scale delivery from modules to controllers and complete system solutions [2]

Group 1 - The software development sector increased by 0.67% compared to the previous trading day, with Jingwei Hengrun leading the gains [1] - The Shanghai Composite Index closed at 3890.45, up 0.36%, while the Shenzhen Component Index closed at 13140.22, up 0.66% [1] Group 2 - In terms of capital flow, the software development sector experienced a net outflow of 1.09 billion yuan from institutional investors and 2.02 billion yuan from retail investors, while individual investors contributed a net inflow of 3.11 billion yuan [2]

Core Viewpoint - The market experienced a rebound with the Shanghai Composite Index rising by 0.36%, the Shenzhen Component Index increasing by 0.66%, and the ChiNext Index up by 0.49%. The trading volume in the Shanghai and Shenzhen markets reached 1.73 trillion, an increase of 704 billion compared to the previous trading day. [1] Market Performance - The market saw rapid rotation of hotspots, with nearly 4,500 stocks rising, although some high-position stocks like Dongbai Group and Pingtan Development faced significant declines towards the end of the trading session. [1] - The Hainan sector surged in the afternoon, with stocks like Hainan Haiyao and Hainan Qiche Group hitting the daily limit. [1][2] - The consumer sector remained strong throughout the day, particularly in retail and dairy, with stocks such as Shanghai Jiubai and Zhuangyuan Pastoral reaching the daily limit. [1][2] Sector Analysis - The Hainan sector is benefiting from the implementation of the Hainan Free Trade Port's full island closure operation, which is expected to attract new industries and increase consumer traffic, providing growth opportunities for businesses in the region. [2] - The consumer sector is supported by recent national policies aimed at expanding domestic demand, which are expected to accelerate the transformation and upgrading of the retail industry. [2] - The smart driving concept stocks saw renewed strength, with companies like Zhejiang Shibao and Luchang Technology hitting the daily limit, following the announcement of the first batch of L3-level conditional autonomous driving vehicle permits by the Ministry of Industry and Information Technology. [3][6] Individual Stock Performance - Over 4,400 stocks closed in the green, with nearly 100 stocks rising over 9%. The consumer sector continued its strong performance, with multiple stocks achieving consecutive limit-ups. [5] - The commercial aerospace sector remained active, with stocks like Xibu Materials and Shenjian Co. also hitting the daily limit, although some popular stocks faced adjustments. [5] Future Market Outlook - The market is expected to face a new round of directional choices, with the Shanghai Composite Index showing relative strength. The focus will be on whether it can maintain its position above the 30-day moving average. [7][8] - Structural opportunities are anticipated, emphasizing the importance of capturing the rotation rhythm among popular themes. [8]

Core Viewpoint - The A-share market shows positive momentum with the Shanghai Composite Index closing at 3890.45 points, above the half-year line, reflecting a gain of 0.36% and a total trading volume of 1.748742 trillion yuan [1] Group 1: Market Performance - The Shanghai Composite Index closed at 3890.45 points, above the half-year line, with a gain of 0.36% [1] - Total trading volume in the A-share market reached 1.748742 trillion yuan [1] Group 2: Stocks Breaking Half-Year Line - A total of 266 A-shares have surpassed the half-year line, indicating strong market interest [1] - Notable stocks with significant deviation rates include: - GQY Vision (10.23%) - Hongwei Technology (9.84%) - Zhongwang Fabric (8.75%) [1] Group 3: Detailed Stock Data - GQY Vision: Today's price increased by 11.23% with a turnover rate of 13.78%, latest price at 7.23 yuan [1] - Hongwei Technology: Today's price increased by 12.30% with a turnover rate of 17.12%, latest price at 27.49 yuan [1] - Zhongwang Fabric: Today's price increased by 9.98% with a turnover rate of 1.78%, latest price at 25.78 yuan [1]

Core Conclusions - The 2026 automotive industry investment strategy emphasizes "breaking old and establishing new," suggesting that the industry is at a crossroads similar to 2011 and 2018, with the end of the electric vehicle (EV) boom and the rise of smart technology [2][3] - The report predicts a total domestic demand of 22 million vehicles in 2026, a decrease of 3.5% year-on-year, with new energy vehicle (NEV) sales expected to reach 13.2 million, an increase of 6.4% [2][10] - The commercial vehicle sector is expected to see a wholesale volume of 1.16 million units in 2026, with a slight increase of 1.5% year-on-year, while the bus sector is projected to maintain strong export growth [2][19] Passenger Vehicle Sector - The passenger vehicle sector is projected to experience a total sales volume of 22 million units in 2026, with NEV sales expected to reach 13.2 million units, reflecting a year-on-year growth of 6.4% [2][10] - The report highlights the impact of a 5% purchase tax on NEVs starting January 1, 2026, which is expected to support domestic demand [10] - Key investment opportunities include BYD and Jianghuai Automobile in the passenger vehicle sector [2][3] Commercial Vehicle Sector - The heavy truck segment is forecasted to have a wholesale volume of 1.16 million units in 2026, with domestic sales expected to decline by 5.5% to 770,000 units, while exports are projected to grow by 18.8% [2][15] - The bus sector is expected to see a total domestic sales volume of 81,000 units, with exports anticipated to grow by over 30% [2][19] Motorcycle Sector - The motorcycle industry is expected to achieve total sales of 19.38 million units in 2026, representing a year-on-year increase of 14%, with large-displacement motorcycles projected to grow by 31% [2][22] - Domestic sales of large-displacement motorcycles are expected to reach 430,000 units, while exports are projected to grow significantly [22] Investment Opportunities - The report identifies key investment opportunities across various segments, including Yutong Bus and King Long in the bus sector, and Spring Power and Longxin General in the motorcycle sector [2][3] - The focus on L4 RoboX investment opportunities highlights the importance of software over hardware in the autonomous driving sector, with recommended stocks including XPeng Motors and Horizon Robotics [2][3] Growth Trends - The report anticipates a continued focus on smart technology and robotics, with significant growth expected in the L4 RoboX industry and AIDC (Automated Identification and Data Capture) sectors [2][3] - The penetration rate of smart driving technology in new energy vehicles is expected to reach 40% by 2026, with a notable shift in chip supplier market shares [13][14]

Group 1 - The Shanghai Composite Index closed at 3887.81 points, above the six-month moving average, with a gain of 0.30% [1] - The total trading volume of A-shares reached 1,390.087 billion yuan [1] - A total of 249 A-shares have surpassed the six-month moving average, with notable stocks including GQY Vision, Hongwei Technology, and Zhongwang Fabric, showing significant deviation rates of 12.05%, 9.88%, and 8.75% respectively [1] Group 2 - GQY Vision (300076) had a daily increase of 13.08% with a turnover rate of 10.52%, and its latest price was 7.35 yuan, showing a deviation rate of 12.05% [1] - Hongwei Technology (688711) increased by 12.34% with a turnover rate of 15.68%, latest price at 27.50 yuan, and a deviation rate of 9.88% [1] - Zhongwang Fabric (605003) rose by 9.98% with a turnover rate of 1.76%, latest price at 25.78 yuan, and a deviation rate of 8.75% [1]

Core Viewpoint - The A-share market experienced a collective rebound on December 19, with strong performance in smart driving and vehicle-road-cloud concepts, leading to significant increases in related ETFs and stocks [1]. Group 1: Market Performance - The three major A-share indices rebounded collectively, with notable gains in smart driving and vehicle-road-cloud sectors [1]. - As of 13:32, the Hong Kong Stock Connect Automotive ETF (159323) rose by 2.75%, the Smart Vehicle ETF (159888) increased by 1.9%, and the Automotive Parts ETF (562700) gained 1.87% [1]. - Related concept stocks such as Zhejiang Shibao and Suoling Co. hit the daily limit, with Haon Automotive rising over 14%, Jingwei Hengrun-W increasing over 12%, and Yunyi Electric rising over 10% [1]. Group 2: Regulatory Developments - On December 15, the Ministry of Industry and Information Technology announced the first batch of L3-level conditional autonomous driving vehicle permits in China, marking a significant step from testing to commercial application [1]. - According to Xinda Securities, regulations are gradually improving, and L3 and advanced intelligent driving are progressively being implemented [1]. - The domestic regulatory environment for smart connected vehicles is becoming more standardized, while independent brands are accelerating the development of intelligent driving technology, leading to an increase in industry penetration rates [1].