Group 1: Investor Relations Activity - The report documents an investor relations activity conducted by Desay SV Automotive Co., Ltd. on November 17-18, 2025, in Huizhou [1][2] - Participants included representatives from various securities firms and investment funds, such as Dongwu Securities and Guotai Junan [2] Group 2: Key Discussion Points - The impact of new intelligent driving regulations was discussed, emphasizing the need for higher performance and safety standards in vehicle configurations [3] - The company has secured new project orders from several international automotive giants, including Toyota, Volkswagen, and Volvo, indicating a strong internationalization process [3] - Progress in the company's robotics domain control business was highlighted, with strategic partnerships established with notable robotics firms and the launch of AI Cube for enhanced reliability and adaptability in various environments [3]

Group 1 - The core point of the article is that Desay SV (002920.SZ) has confirmed that BYD is one of its clients and that it supplies components for specific models [1] Group 2 - Desay SV is actively engaged in the automotive supply chain, indicating its role in providing parts to major automotive manufacturers like BYD [1]

Investment Rating - The industry investment rating is "Overweight" indicating a positive outlook for the sector compared to the overall market performance [8]. Core Insights - The report emphasizes that intelligence will be a key theme in the market for 2026, with investment opportunities extending beyond smart driving to areas like Robotaxi. A data closed loop is identified as the core starting point for achieving full-stack self-research, which differs fundamentally from mere data collection [1][3]. - The establishment of a data closed loop is crucial for filtering effective information from massive data, enabling machines to understand data, feedback to correct models, and perform OTA updates for secondary verification. This requires not only data ownership but also the ability to identify data gaps and utilize data to enhance models [1][3]. - The report suggests that the scale of the data closed loop team (e.g., whether it reaches a hundred members) and related investments should be key indicators for assessing a company's commitment and capability for self-research [1][3]. Summary by Sections Data Closed Loop - The report highlights that when algorithm models are truly driven by PB-level data, it will create a competitive barrier that is difficult to replicate. Even if competitors acquire model architectures or poach key personnel, lacking a substantial underlying data accumulation will hinder their ability to replicate similar algorithm capabilities in the short term [2][4]. - Building a solid data closed loop is expected to provide companies with a certainty of competitive advantage for six months to a year. Companies like Xiaopeng, Li Auto, and Huawei are noted to have established a leading advantage in the smart driving sector, with a high degree of technical moat [2][4]. Investment Recommendations - The report recommends focusing on domestic strong alpha manufacturers such as BYD, Geely, and Xiaopeng, as well as companies that represent the trend of intelligence like Huawei's HarmonyOS. Attention is also drawn to companies like JAC Motors and Seres, with specific recommendations for Li Auto, Kobot, Desay SV, and Jingwei Hengrun [2]. - For state-owned enterprise integration, the report suggests monitoring SAIC Motor, Dongfeng Motor Group, and Changan Automobile. Additionally, it highlights component companies with strong performance growth and capabilities for overseas expansion, recommending Fuyao Glass, New Spring, Fuda, Shuanghuan Transmission, and Yinlun [2].

Core Viewpoint - The Shanghai Composite Index fell by 0.46% on November 17, with 17 industries experiencing gains, led by the computer and defense industries, which rose by 1.67% and 1.59% respectively [1] Market Performance - The main funds in the two markets experienced a net outflow of 31.953 billion yuan, with 6 industries seeing net inflows. The computer industry had the largest net inflow of 7.211 billion yuan, followed by the defense industry with 2.892 billion yuan [1] - The pharmaceutical and banking industries had the largest net outflows, with 8.789 billion yuan and 7.644 billion yuan respectively [1] Computer Industry Analysis - The computer industry rose by 1.67%, with 273 out of 335 stocks in the sector increasing in value, including 13 stocks hitting the daily limit [2] - The top three stocks with the highest net inflow in the computer sector were: - 360 (15.67 billion yuan) - Huasheng Tiancheng (12.85 billion yuan) - Zhongdian Xindong (9.10 billion yuan) [2] - The stocks with the largest net outflows included: - Hikvision (-2.67 billion yuan) - Tonghuashun (-1.76 billion yuan) - Desay SV (-1.14 billion yuan) [3] Key Stocks in Computer Industry - Top gainers in the computer industry included: - 360: +10.01%, turnover rate 7.20%, net inflow 1.566 billion yuan - Huasheng Tiancheng: +10.03%, turnover rate 12.68%, net inflow 1.285 billion yuan - Zhongdian Xindong: +9.99%, turnover rate 23.07%, net inflow 909.87 million yuan [2] - Stocks with significant outflows included: - Hikvision: -2.71%, turnover rate 0.70%, net outflow -266.95 million yuan - Tonghuashun: -0.50%, turnover rate 1.40%, net outflow -176.29 million yuan - Desay SV: -2.08%, turnover rate 1.38%, net outflow -114.48 million yuan [3]

Core Viewpoint - Desay SV's stock price has experienced fluctuations, with a recent decline of 2.01% and a total market value of 66.172 billion yuan, indicating potential investor concerns and market volatility [1]. Financial Performance - For the period from January to September 2025, Desay SV achieved a revenue of 22.337 billion yuan, representing a year-on-year growth of 17.72%, while the net profit attributable to shareholders was 1.788 billion yuan, reflecting a growth of 27.08% [2]. - Cumulative cash dividends since the company's A-share listing amount to 2.237 billion yuan, with 1.438 billion yuan distributed over the past three years [3]. Shareholder Information - As of September 30, 2025, the number of shareholders for Desay SV was 56,500, a decrease of 4.24% from the previous period, while the average circulating shares per person increased by 4.43% to 9,789 shares [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited holds 9.3147 million shares, an increase of 1.502 million shares compared to the previous period, while Huatai-PB CSI 300 ETF holds 4.8369 million shares, a decrease of 238,800 shares [3]. Stock Performance - Year-to-date, Desay SV's stock price has increased by 1.80%, but it has seen a decline of 5.78% over the last five trading days and a 10.85% drop over the last twenty days [1].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 163.80 CNY, based on an estimated EPS of 4.20, 5.32, and 6.59 CNY for 2025-2027 [3][6]. Core Insights - The company is accelerating its overseas market expansion and has launched a low-speed unmanned vehicle business, which is expected to become a new growth engine for performance [2][9]. - The company continues to lead in the intelligent cockpit and intelligent driving sectors, securing new project orders from various automakers and expanding its international presence with strategic branches in multiple countries [9]. - The financial forecast indicates significant revenue growth, with projected revenues of 21.91 billion CNY in 2023, increasing to 49.53 billion CNY by 2027, reflecting a compound annual growth rate (CAGR) of approximately 19.5% [5][9]. Financial Summary - Revenue (CNY million): - 2023: 21,908 - 2024: 27,618 - 2025: 34,149 - 2026: 41,452 - 2027: 49,526 - Year-on-Year Growth (%): - 2023: 46.7% - 2024: 26.1% - 2025: 23.6% - 2026: 21.4% - 2027: 19.5% [5] - Net Profit (CNY million): - 2023: 1,547 - 2024: 2,005 - 2025: 2,504 - 2026: 3,174 - 2027: 3,930 - Year-on-Year Growth (%): - 2023: 30.6% - 2024: 29.6% - 2025: 24.9% - 2026: 26.8% - 2027: 23.8% [5] - EPS (CNY): - 2023: 2.59 - 2024: 3.36 - 2025: 4.20 - 2026: 5.32 - 2027: 6.59 [5] Market Performance - As of November 14, 2025, the stock price is 113.14 CNY, with a 52-week high of 154.17 CNY and a low of 89.90 CNY [6]. - The company has shown a relative performance decline of -12.3% over the past year compared to the market index [6].

Core Insights - The article emphasizes the transformation of project management into a core competitive advantage for organizations, driven by advancements in technologies such as AI, big data, cloud computing, and IoT [1][2] - The 2025 PMI Project Management Conference will focus on innovative practices and future trends in project management in the AI era, highlighting the importance of effective project management in achieving strategic goals [1][2] Group 1: Project Management Trends - The PMI China Project Management Awards showcase three major trends in management innovation: AI application, PMO development, and green sustainable development [2][4] - The annual project award was given to Desay SV Automotive for its high-performance auxiliary driving domain control platform, which faced challenges due to the need for extended software iteration cycles [4][5] Group 2: AI and Project Management - Desay SV optimized its project management through early design evaluations using AI tools, deep collaboration with suppliers and customers, and internal deployment of proprietary AI models, resulting in a 40% reduction in the hardware platform's design-to-validation cycle [4][5] - JD Group's project management channel has improved efficiency by upgrading project approval processes, achieving a 40% increase in approval efficiency and a 12.1% increase in project goal achievement rates [6][7] Group 3: PMO and Strategic Execution - The PMO award was won by JD Group for its top-level PMO structure that effectively breaks down organizational strategic goals into quantifiable project objectives [7] - The PMO's matrix management approach allows for effective resource allocation and project management across various domains [7] Group 4: Green Transformation - The ESG Outstanding Project Award was given to CPECC for its gas processing plant project in Iraq, which implemented standardized and digitalized management to reduce energy consumption and emissions significantly [9] - The project is expected to reduce sulfur dioxide emissions by 30,000 tons and carbon dioxide emissions by 3,530,000 tons annually, supporting Iraq's "2030 Zero Burning" plan [9] Group 5: PMI's Role and Future Directions - PMI has established a robust ecosystem for identifying and promoting best practices in project management, attracting over 300 organizations and 600 project applications over 16 years [11][13] - PMI aims to bridge the gap between academic training and industry needs through initiatives like the "PMI China Excellence Project Management School-Enterprise Cooperation Initiative" [16][19] - PMI's certification system is evolving to meet the demands of various professional stages, focusing on areas such as AI, business analysis, and green projects [19]

Core Insights - The article emphasizes the transformation of project management into a core competitive advantage for organizations, driven by advancements in technologies such as AI, big data, cloud computing, and IoT [1] - The 2025 PMI Project Management Conference in Shenzhen focuses on innovative practices and future trends in project management in the AI era [1] Group 1: Award Highlights - The PMI China Project Management Awards, initiated in 2010, aim to promote successful experiences in project management among organizations [2] - The awarded projects reflect three major trends in management innovation: AI application, PMO development, and green sustainable development [2] Group 2: AI Application in Project Management - The annual project award was given to Desay SV Automotive for its high-performance auxiliary driving domain control platform project, which faced challenges due to compressed hardware design cycles and extended software iteration periods [4] - Desay SV optimized its processes through early design evaluations using AI tools, deep collaboration with suppliers and customers, and internal deployment of proprietary AI models, resulting in a 40% reduction in the hardware platform's design-to-validation cycle [4] Group 3: PMO Development - JD Group won the annual PMO award for establishing a "vertical and horizontal" project management system that effectively breaks down and implements organizational strategic goals [6] - The project management channel at JD Group improved approval efficiency by 40% and increased project goal achievement rates by 12.1% through digital tools and streamlined processes [6] Group 4: Green Sustainable Development - The ESG Outstanding Project Award was given to China Petroleum Engineering Construction Corporation for its gas processing plant project in Iraq, which implemented standardized and digitalized management to reduce energy consumption and emissions [8] - The project is expected to reduce sulfur dioxide emissions by 30,000 tons and carbon dioxide emissions by 3,530,000 tons annually, providing clean energy to approximately 4 million households [8] Group 5: PMI's Role and Future Directions - PMI has established a robust ecosystem for identifying and promoting best practices in project management over the past 16 years, attracting over 300 organizations and 600 project applications [11] - PMI aims to bridge the gap between academic talent cultivation and industry needs through initiatives like the "PMI China Excellence Project Management School-Enterprise Cooperation Initiative" [17] - PMI is focusing on enhancing its certification system and industry services, particularly in AI and technology sectors, to support the internationalization of Chinese enterprises [20]

Summary of the Conference Call on the Chinese Automotive and Shared Mobility Industry Industry Overview - The report focuses on the **Chinese automotive and shared mobility industry** and the global expansion of automotive parts suppliers [1][2]. Key Insights - **Declining Domestic Profits**: Chinese automotive parts suppliers are experiencing declining domestic profits, prompting them to seek global opportunities. The report favors companies with low overseas business ratios but rapid expansion (e.g., Xingyu, Desay) and those with large and improving overseas operations (e.g., Minth, Keboda) [3][4]. - **Global Expansion Acceleration**: Over the past decade, the Chinese automotive industry has been exploring overseas opportunities. Despite increasing tariff uncertainties, parts suppliers are accelerating their global expansion by shifting from exports to establishing overseas factories to counteract de-globalization trends. A compound annual growth rate (CAGR) of **12%** is expected for Chinese automotive parts suppliers from **2025 to 2030**, with a projected market opportunity of **$240 billion** by **2030**, achieving a **10%** share of the overseas market (+3.5 percentage points) [3][4][22]. - **Push and Pull Factors**: The intensifying price competition in the domestic automotive market, rising profit pressures, and losses from new projects are driving suppliers to reduce domestic exposure. Conversely, the early adoption of smart electric vehicles in China has led to improvements in product quality and technical specifications, enabling suppliers to provide competitive parts for the next generation of global vehicles [3][4][23]. Important Trends - **Shift from Exports to Overseas Factories**: The report indicates that acquisitions bring new customers, while exports yield higher profit margins. However, suppliers are expected to establish overseas factories due to domestic competition. Popular locations for these factories include **Mexico** (serving U.S. automakers), **Eastern Europe**, **North Africa**, and **Southeast Asia**. It is anticipated that net profit margins for overseas factories may be **10-15 percentage points** lower than exports and **0-5 percentage points** lower than domestic factories, although margins are expected to improve over time [4][26]. - **Individual Company Impact**: Traditional parts suppliers are seen as having a greater advantage in going overseas, followed by smart hardware suppliers. Companies like Xingyu and Desay, despite currently having less than **10%** of their revenue from overseas, are expected to accelerate their overseas income through new project wins. Minth, Keboda, and Fuyao are expected to continue improving profitability despite tariff disruptions due to enhanced operational efficiency [4][29]. Company Ratings Adjustments - **Upgrades**: Companies such as Xingyu (601799.SS), Desay (002920.SZ), Keboda (603786.SS), and Minth (0425.HK) have been rated as Overweight (OW) due to their potential for growth and expansion [8][30]. - **Downgrades**: Sanhua (002050.SZ) and Tuopu (601689.SS) have been downgraded to Equal-weight (EW) as optimistic market expectations regarding humanoid robots and overseas expansion are already reflected in their stock prices. The report anticipates a slowdown in U.S. electric vehicle growth starting in Q4 2025 and a slowdown in the Chinese market beginning in 2026 [4][29]. Additional Insights - **Export Growth**: The report notes that the export value of Chinese automotive parts is expected to grow at a CAGR of **10%** from **2019 to 2024**, significantly higher than the **1%** CAGR from **2014 to 2019**. This growth is attributed to the need for suppliers to mitigate tariff risks by increasing offshore manufacturing [22][23]. - **Challenges in Domestic Market**: The domestic market presents a dilemma for suppliers, as joint venture clients offer better prices but declining sales, while local clients provide volume growth but at lower prices [23][25]. Conclusion - The Chinese automotive parts suppliers are at a pivotal point, with the need to adapt to both domestic challenges and global opportunities. The focus on overseas expansion, driven by competitive pressures and improved product quality, positions these suppliers for potential growth in the coming years.

Core Viewpoint - Black Sesame Intelligence has successfully integrated its flagship product, the Huashan A1000 automotive-grade high-performance driving assistance chip, into Desay SV's new low-speed unmanned vehicle brand "Chuanxing Zhiyuan" S6 series, enhancing safety and reliability in logistics operations [1] Group 1: Company Developments - Black Sesame Intelligence's stock rose nearly 4% during trading, currently up 2.67% at HKD 22.3, with a trading volume of HKD 135 million [1] - The Huashan A1000 chip has passed multiple authoritative automotive certifications, including ISO26262 ASIL-B functional safety certification and AEC-Q100 Grade 2 automotive reliability certification [1] - The collaboration aims to leverage Black Sesame's mature chip technology to enhance Desay SV's low-speed unmanned vehicle products, improving competitiveness in high-safety-demand scenarios [1] Group 2: Industry Impact - The partnership will solidify Black Sesame Intelligence's leading position in the low-speed unmanned delivery chip sector [1] - The company will continue to provide safety redundancy support for the large-scale deployment of the Chuanxing Zhiyuan S6, helping establish market advantages [1]