Group 1 - Shanxi Huayang Group has proven that kilometer drilling rigs are effective in gas management, making them a crucial technology for current gas control efforts [1] - The company has been conducting specialized training for directional drilling rigs since last year, with 48 trainees graduating in 2024, now serving as key technical personnel [1] - In 2025, a new training program will be organized, involving 92 employees from seven coal mining units, focusing on training directional drilling technicians and rig operators [1] Group 2 - The training program includes 40 days of theoretical training and 30 days of practical training underground, with an increased focus on hands-on experience compared to the previous year [1] - The training has been enhanced by relocating the disassembly and installation of vulnerable parts to the company's training center, allowing for longer and more targeted training sessions [2] - The first batch of trainees has shown significant improvement, with successful completion of drilling tasks and enhanced independent operational capabilities [2]

Core Viewpoint - The automotive display market is experiencing high growth but is simultaneously facing a structural dilemma of low profitability, leading to a shift in competitive focus from mere scale expansion to differentiation strategies [4][13]. Market Growth Potential - The global automotive display system market is projected to grow from $23.83 billion in 2024 to $47.37 billion by 2029, with a compound annual growth rate (CAGR) of 14.7% [2]. - The total shipment of automotive display panels is expected to reach 232 million units in 2024, marking a year-on-year increase of 6.2% [2]. Competitive Landscape - The automotive display market is viewed as a "second growth curve" for the display industry, especially as traditional markets like mobile phones and TVs face saturation [3]. - Major display manufacturers are increasingly investing in automotive display capacity, leading to intensified price competition [4]. Structural Challenges - The automotive display market is characterized by "structural dividends and competitive excess," with many suppliers feeling the pressure from both automotive manufacturers and price wars [4][10]. - The shift towards direct partnerships between panel manufacturers and automakers is emerging, reducing reliance on traditional Tier 1 suppliers [10][11]. Differentiation Strategies - Building deep relationships with automakers and Tier 1 suppliers is crucial for success, as the automotive project cycle is long and complex [15]. - Companies must focus on diverse technological innovation capabilities to meet the stringent requirements of automotive-grade products [15][16]. Company Strategies - BOE is adopting a comprehensive strategy to become a "general contractor" for smart cockpits, leveraging its extensive technology portfolio [18]. - Tianma is focusing on high-resolution LTPS LCD technology, achieving over 30% year-on-year revenue growth in its automotive business [19]. - TCL Huaxing is rapidly increasing its market share through deep partnerships with key automotive players, achieving a 125% year-on-year growth in automotive display shipments [20]. Emerging Technologies - The rise of electric vehicles is driving demand for larger and more advanced screens, with HUD technology becoming increasingly common in mid-range vehicles [7]. - Companies like XGIMI are exploring projection technology as an alternative to traditional screens, aiming to address space and adaptability challenges [23].

汽车行业 超配（上调） 汽车行业双周报（2025/05/30-2025/06/12） 行 业 车企积极响应《保障中小企业款项支付条例》 2025 年 6 月 13 日 投资要点： 本报告的风险等级为中风险。 本报告的信息均来自已公开信息，关于信息的准确性与完整性，建议投资者谨慎判断，据此入市，风险自担。 请务必阅读末页声明。 资料来源：iFinD，东莞证券研究所 分析师：刘梦麟 SAC 执业证书编号： S0340521070002 电话：0769-22110619 邮箱： liumenglin@dgzq.com.cn 申万汽车行业指数涨跌幅：截至2025年6月12日，申万汽车板块近两周 下跌0.61%，跑输沪深300指数1.47个百分点，在申万31个行业中排名第 26名；申万汽车板块从6月初至今上涨1.33%，跑输沪深300指数0.02个 百分点，在申万31个行业中排名第19名；申万汽车板块从2025年初至今 上涨10.01%，跑赢沪深300指数11.10个百分点，在申万31个行业中排名 第6名。 周 报 行 业 研 究 研究助理：吴镇杰 SAC 执业证书编号： S0340124020014 电话：0769- ...

Core Insights - Huayang Group is enhancing its supply chain management through the development of a transparent and efficient e-commerce procurement platform [1][3] Group Development Journey - In 2018, Huayang Group partnered with JD.com to create the "JD Smart Procurement" platform, becoming the first in the coal industry to implement e-commerce procurement [2] - In the first five months of the platform's launch, Huayang Group procured 2,846 types of goods totaling 7.5 million yuan, achieving a price reduction of 4.1% compared to JD.com [2] - By 2020, Huayang Group expanded its e-commerce capabilities by collaborating with Nasda to create a one-stop online procurement service platform, inviting multiple e-commerce companies to join [2] - In early 2023, Huayang Group initiated the "Huayang E-commerce Platform 3.0" project in partnership with Alibaba Cloud, aiming to build a smart supply chain digital platform [2] - The new platform is set to officially launch in November 2023 and will be fully promoted by March 2024 [2] New Operational Model - The Huayang e-commerce platform features modules for operations, marketplace, suppliers, and data integration, allowing for comprehensive management of the procurement process [4] - The platform enables self-management of suppliers, products, orders, after-sales, reconciliation, and invoicing, enhancing control over the procurement process [4] - New modules for product management and online acceptance improve management precision and facilitate supplier and product scoring [4] Procurement Experience - The Huayang e-commerce platform 3.0 has onboarded 214 purchasing units and 74 suppliers, with 160,000 products listed and a total transaction amount of 370 million yuan [5] - The procurement process has become significantly more efficient, with order processing from demand submission to delivery acceptance now completed within 10 days [5] - The platform has also reduced procurement costs, with a savings rate of 9.13% achieved through centralized management and enhanced bargaining power [5] Future Directions - Huayang Group plans to focus on data-driven, AI-enabled, and secure management of its e-commerce platform, aiming for improved product aggregation, price monitoring, and lifecycle management of suppliers [6]

Core Viewpoint - The Shanxi Huayang Group successfully passed evaluations for three projects at the 2025 Annual First Batch of Coal Technology Innovation Achievement Transfer and Transformation Project Evaluation Conference, indicating advancements in coal mining technology and innovation [1][6]. Group 1: Project Evaluations - The high-strength adjustable electric blasting volume fracturing and permeability enhancement equipment for coalbed methane extraction was rated as first-level, showcasing its effectiveness in improving gas extraction efficiency and reducing operational costs [1]. - The coal mine rock tunnel shield tunneling technology and equipment received a second-level rating, demonstrating its ability to shorten construction periods and address safety and efficiency issues in traditional tunneling methods [2]. - The temperature control method for managing spontaneous combustion of gob and smart dynamic management monitoring technology was rated third-level, highlighting its role in environmental protection and effective monitoring [4]. Group 2: Technological Applications - The high-strength adjustable electric blasting equipment is implemented by Xinyu Geotechnical Company, which enhances gas extraction efficiency while minimizing costs related to transportation, lifting, power supply, and ventilation [1]. - The coal mine rock tunnel shield tunneling technology has been tested in three mines, contributing to safer and more efficient coal mining operations [2]. - The temperature control method for gob management is advanced by Jiuzhou Company, utilizing a self-developed temperature control device for effective heat extraction and integrating a dynamic monitoring system for intelligent management [4][6].

Investment Rating - The investment rating for the company is upgraded to "Buy" [6][4]. Core Viewpoints - The company has demonstrated resilience through cycles, driven by both automotive electronics and precision die-casting businesses [1]. - The company leads the domestic market in automotive electronic products, with a market share of 23.4% for HUD products and 25.3% for in-car wireless charging products [2]. - The precision die-casting business is experiencing steady growth, with significant increases in orders from major clients such as Bosch and BYD [3]. - The company is expected to see strong earnings growth in 2024, with a projected net profit of 979 million yuan, reflecting a 50.3% year-on-year increase [4]. Summary by Relevant Sections Company Overview - Established in 1993, the company transitioned from a state-owned enterprise to a private limited company in 2003, shifting focus from multimedia to automotive industries [1]. Automotive Electronics - The company holds the top market share in HUD and in-car wireless charging products, with ongoing upgrades in domain control products expected to expand market share further [2]. Precision Die-Casting - The precision die-casting segment is robust, with applications in key automotive components and significant order increases from major clients, particularly in the areas of smart automotive parts and electric vehicle systems [3]. Financial Projections - The company’s net profit forecasts for 2025 and 2026 are adjusted to 979 million yuan and 1.266 billion yuan, respectively, with expected growth rates of 50.3% and 29.3% [4][10].

Core Viewpoint - Huayang Group has achieved significant recognition in both industrial innovation and spiritual civilization construction, reflecting its commitment to the core socialist values and the "Five-Type Huayang" initiative [1] Group 1: Achievements in the Coal Industry - Liu Shiming, a supervisor at the scheduling room of Mine One, was awarded "Top Ten Outstanding Miners" for reducing labor intensity by 10% and increasing production by 15% through an effective management method [3] - Dong Tengfei, deputy captain of the coal mining team at Mine Two, became a benchmark for "New Era Model Miners" through technological innovation and mentorship practices [3] - Yang Qing, deputy captain of the belt team at Mine One, received the "New Era Youth Pioneer Award" for handling 1,289 electrical accidents and applying for three national patents, showcasing the role of technological innovation in safety production [3] Group 2: Spiritual Civilization Construction - Huayang Group has excelled in spiritual civilization construction, with Mine One being the only unit in Yangquan City to achieve the title of "National Civilized Unit" for 21 consecutive years [5] - The "Five Civilizations" collaborative development model includes significant achievements in material civilization with a total production of 166 million tons of coal, political civilization through a robust party-building brand, and ecological civilization with national-level green mine certifications [5][11] Group 3: Integration of Values and Corporate Culture - The company has integrated the theme of "Loving the Party, the Country, the Enterprise, and the Job" into its corporate culture, enhancing the moral standards and civilized qualities of its employees through various initiatives [9] - The construction of a national-level intelligent mine has led to a 30.65% reduction in equipment failure rates, demonstrating the deep integration of spiritual civilization with safety production and intelligent construction [11] Group 4: Future Vision - Huayang Group aims to continue synchronizing spiritual civilization construction with the "Five-Type Huayang" strategy, ensuring that socialist core values permeate every aspect of corporate development [13]

Core Insights - Shanxi Huayang Group has achieved significant recognition in industrial innovation and spiritual civilization construction since 2025, demonstrating the success of its "Five-Type Huayang" initiative [1][3] Group 1: Achievements and Recognition - Huayang Group's mining operations have led to a 10% reduction in labor intensity and a 15% increase in production through effective management practices [1] - Liu Shiming from Huayang No. 1 Mine was awarded "Top Ten Outstanding Miners" for his innovative work methods [1] - Huayang No. 1 Mine has been recognized as a "National Civilized Unit" for 21 consecutive years [1][2] Group 2: Development Models - The "Five Civilizations" collaborative development model at Huayang No. 1 Mine has resulted in the production of 166 million tons of commercial coal [2] - The mine has established a strong political foundation through its "Seven Frontline" party-building brand [2] - Huayang No. 1 Mine has received national-level certifications for green mining and intelligent mining, showcasing its commitment to ecological and technological advancements [2] Group 3: Integration of Values and Practices - The company integrates spiritual civilization construction with safety production and intelligent development, achieving a 30.65% reduction in equipment failure rates [2] - The family of Wenwen Wen from Xin Jing Company was recognized as a "National Civilized Family," exemplifying the values of moral governance and educational excellence [2] - The company emphasizes the implementation of socialist core values in every aspect of its operations, contributing to its overarching goal of practical enterprise development [3]

Group 1 - The Ministry of Industry and Information Technology and other departments have launched the 2025 New Energy Vehicle (NEV) initiative to promote NEV usage in rural areas, focusing on quality and reliable models [1] - The initiative includes exhibitions, test drives, and collaboration with after-sales service, charging service, insurance, and financial service companies to enhance the NEV ecosystem in rural regions [1] - Policies such as tax reductions and incentives for vehicle trade-ins will encourage manufacturers to expand their product offerings and improve service levels in rural markets [1] Group 2 - Dongxing Securities notes that the automotive industry is experiencing intensified competition, impacting profitability and cash flow, but leading companies are still showing improvements in net profit and operating cash flow [2] - The release of new vehicles during auto shows and the ongoing effects of new policies are expected to gradually improve the performance of automotive companies in the second quarter [2] - Recommended companies for investment include SAIC Motor, Jianghuai Automobile, BYD, Changan Automobile, and others within the automotive and related sectors [2]

Summary of Key Points from the Conference Call Industry Overview - The automotive smart cockpit sector is rapidly developing, with increasing penetration of technologies such as DMS (Driver Monitoring System), OMS (Occupant Monitoring System), and HUD (Head-Up Display) [1][3] - Leading domestic automotive TIER one manufacturers are accelerating market share concentration, with top companies outperforming the average market growth [1][3] Core Insights and Arguments - **Virtual Panoramic Display (VPD)**: This innovative technology offers richer information presentation and has the potential to expand imaging space and projection size, possibly replacing existing display solutions in the long term [1][4] - **HUD Market Growth**: The penetration rate of HUD products is rapidly increasing, with an expected 3.56 million units of HUD installed in new domestic passenger cars in 2024, representing a penetration rate of 16%, up from 11% in 2023 [1][6] - **Market Share of Domestic Manufacturers**: By 2024, domestic manufacturers are projected to capture 57% of the HUD market, with Huayang leading at a 22% market share [1][9] - **Challenges in VPD Technology**: The technology faces challenges such as optical design, heat management, and mass production consistency, which are critical for its successful implementation [2][14][15] Competitive Landscape - **Leading Companies**: Huayang Group is positioned as a leader in the VPD field, with rapid sales growth in cockpit domain control products, expecting a net profit of 857 million yuan in 2025 [1][18][20] - **Supplier Advantages**: Suppliers with comprehensive in-car display capabilities, including optical design and mass production experience, are expected to have a competitive edge [2][7][17] - **Emerging Trends**: The market is witnessing a shift towards more integrated display solutions, with companies like Xiaomi showcasing innovative VPD systems that enhance user experience [5][8] Financial Projections - **Huayang Group's Financial Outlook**: The company anticipates a net profit of 857 million yuan in 2025 and 1.076 billion yuan in 2026, indicating a significant growth trajectory [20] - **Market Valuation**: Current stock prices suggest that Huayang Group is undervalued compared to historical valuations and other smart automotive electronic companies, with a PE ratio of 20x for 2025 and 16x for 2026 [20] Additional Important Insights - **Technological Advantages of VPD**: VPD systems can project a wide range of information simultaneously, improving the user experience by reducing the need for frequent screen switching [12][13] - **Collaboration and Client Expansion**: Huayang is actively expanding its client base, collaborating with joint ventures and securing projects with major automotive brands [19] This summary encapsulates the key points discussed in the conference call, highlighting the advancements and challenges within the automotive smart cockpit industry, particularly focusing on virtual panoramic display technology and its market implications.