Group 1: Hong Kong Stocks - Yuewen Group (00772) rose over 4% as the company launched four major initiatives to develop its comic-drama ecosystem and actively promote IP commercialization [1] - ASMPT (00522) increased by over 7% after Morgan Stanley reported a recovery in mainstream semiconductor demand and continuous growth in the advanced packaging market, estimating that ASMPT's third-quarter order shipment ratio will remain above 1 [1] - Sands China (01928) rose over 1% as Citigroup expects its EBITDA recovery to continue in Q4 this year and into next year [1] - Jinli Permanent Magnet (06680) saw an increase of over 5% due to significant improvement in profitability and the strategic importance of rare earth resources [1] - AVIC Aircraft (02357) rose over 4% as its Zihuo future aircraft concept model was showcased at the Airshow, with business spanning the aviation industry chain [1] - Minmetals Resources (01208) increased by over 2% with a reported 11% year-on-year growth in total copper production in Q3, and institutions are optimistic about the performance of the Las Bambas mine [1] - Semiconductor stocks led the gains, with Huahong Semiconductor (01347) up over 10%, Shanghai Fudan (01385) up over 4%, SMIC (00981) up over 5%, and Jingmen Semiconductor (02878) up over 6%. Galaxy Securities noted that semiconductor equipment is a critical support sector in the tech war [1] - Horizon Robotics-W (09660) rose over 3% as it gained favor from domestic and international car manufacturers, with HSD already designated by multiple automakers [1][2] Group 2: US Stocks - Tesla (TSLA.US) rose 2.28% with Q3 2025 revenue at $28.095 billion, a 12% year-on-year increase, exceeding analyst expectations [3] - IBM (IBM.US) fell 0.87% as its Q3 hybrid cloud division revenue growth slowed and fell short of expectations [3] - Micron Technology (MU.US) increased by 4.15% as it officially samples the 192GB SOCAMM2 to customers, actively expanding low-power memory applications in AI data centers [3] - NIO (NIO.US) rose 0.73% with over 10,000 deliveries last week, including a record high of over 3,500 for the L90 model [3] - Hesai (HSAI.US) increased by 3.95% after announcing a strategic partnership with Guanghetong to jointly release a multi-modal perception and control solution based on lidar and dual-vision technology [3] - Baidu (BIDU.US) rose 2.95% as it partnered with Swiss Post's subsidiary PostBus to launch autonomous taxi road tests in Switzerland in December [3] - Futu Holdings (FUTU.US) increased by 3.65% after CICC raised its target price by 6% to $230, maintaining an "outperform" rating [3] - Alibaba (BABA.US) rose 3.64% as its Quark AI glasses are set to launch for pre-sale on the 24th [4] - Southwest Airlines (LUV.US) fell 6.25% despite a 1.1% year-on-year revenue increase to $6.95 billion in Q3, exceeding market expectations [4] - Intel (INTC.US) rose 3.36% with Q3 revenue at $13.65 billion, a 2.8% year-on-year increase [5]

Core Viewpoint - Hesai (HSAI.US) has seen a pre-market increase of 1.1%, reaching $22.02, following a strategic partnership with Guanghetong to launch a multi-modal perception and control solution based on LiDAR, stereo vision, and RTK technology [1] Group 1 - The collaboration between Hesai and Guanghetong aims to enhance robotic capabilities through advanced perception and control solutions [1] - The newly developed solution has already been successfully implemented in a leading domestic intelligent robotics company, empowering its next-generation benchmark robotic products [1]

Core Viewpoint - Hesai (HSAI.US) has seen a pre-market increase of 1.1%, reaching $22.02, following a strategic partnership with Guanghetong to launch a multi-modal perception and control solution based on LiDAR, stereo vision, and RTK technology [1] Group 1 - The strategic collaboration between Hesai and Guanghetong aims to enhance robotic capabilities through advanced perception and control solutions [1] - The newly developed solution has already been successfully implemented in a leading domestic intelligent robotics company, empowering its next-generation benchmark robotic products [1]

Core Insights - The Chinese lidar market is showing significant head concentration, with Huawei and Hesai Technology together holding a market share of 73.9%, an increase of 8.7 percentage points from 65.2% in the first five months of the year, solidifying a "dual oligopoly" structure [1][6]. Group 1: Company Performance - Huawei ranks first with an installation volume of 643,800 units, achieving a market share of 41.1%. Its lidar is a core component of its smart automotive solutions, primarily supplied to the Hongmeng Intelligent Driving ecosystem and HI model partners, covering brands like AITO, Zhiji, and others [5]. - As of August, Huawei's QianKun lidar cumulative shipments exceeded 1 million units, with its intelligent driving system supporting 22 different models, including those capable of L3 level autonomous driving [5]. - Hesai Technology ranks second with an installation volume of 514,200 units and a market share of 32.8%. The company has established competitive barriers through self-developed chips and scaled production, becoming the first lidar manufacturer globally to exceed an annual production of 1 million units [6]. Group 2: Market Dynamics - The remaining market positions are relatively fragmented, with Suteng Juchuang holding a 19.5% market share and Tudatong at 6.7%, while other manufacturers collectively account for less than 1% [6]. - The overall market for lidar in China is expected to exceed 5 billion yuan by 2025 and grow to over 20 billion yuan by 2030, with a compound annual growth rate of 18.5%. The autonomous driving sector is projected to account for 45% of this market by 2030 [6]. - Analysts indicate that the differences in technological paths among leading companies are key drivers of the increasing concentration, with Huawei leveraging ecosystem integration and Hesai focusing on chip development and capacity expansion [6][7].

Investment Rating - The report does not explicitly state an investment rating for the smart driving industry Core Insights - The smart driving industry is experiencing rapid evolution driven by "end-to-end" and "smart driving equity" concepts, with significant growth in both new energy vehicle sales and smart driving functionalities [3][4][9] - The penetration rate of L2-level smart driving in new energy vehicles in China has increased from approximately 7% in 2019 to around 65% by the first half of 2025, indicating a strong correlation between new energy vehicle sales and the adoption of smart driving technologies [9][10] - The smart driving market is projected to exceed 5 trillion yuan by 2030, with a compound annual growth rate driven by technological advancements and increased consumer acceptance [15][16] Summary by Sections 1. "Equity + End-to-End" Accelerating Smart Driving Evolution - The smart driving industry has seen a significant increase in new energy vehicle sales, which has created a positive feedback loop for the adoption of smart driving technologies [9][10] - The penetration of L2-level smart driving features in new energy vehicles has rapidly increased, reflecting the growing consumer acceptance and market expansion of smart driving technologies [9][10] 2. End-to-End Smart Driving Review - The evolution of end-to-end smart driving can be categorized into four main stages, with advancements in perception, decision-making, and control processes [30][32] - The introduction of the "occupancy network" has enhanced environmental perception capabilities, allowing for more accurate and stable decision-making in complex driving scenarios [46][47] 3. VLA Technology Route - The VLA (Vision-Language-Action) model is emerging as a key driver of paradigm shifts in autonomous driving, integrating visual, linguistic, and action modalities into a cohesive framework [70][71] - The VLA model's development is divided into four stages, with significant advancements in task understanding and execution capabilities [76][77] 4. World Model Technology Route - The world model approach emphasizes physical reasoning and spatial understanding, representing a long-term evolution path for smart driving technologies [69][70] - The integration of world models with cloud computing is expected to enhance the iterative optimization of end-to-end smart driving systems [65][66]

Core Insights - HeSai Technology and Guanghe Tong have established a strategic partnership to jointly launch a multi-modal perception and control solution for robots, integrating LiDAR, dual-vision, and RTK technologies [1] Group 1: Partnership Details - The collaboration focuses on 3D LiDAR technology and AI visual algorithms [1] - The partnership aims to enhance capabilities in embodied intelligence, quadruped robotic dogs, and lawn-mowing robots [1] Group 2: Application and Impact - The solution is designed to assist robots in achieving precise positioning, environmental perception and obstacle avoidance, as well as path planning and navigation [1] - The solution has already been successfully implemented in a leading domestic embodied intelligence company [1]

Group 1 - Recent years have seen a trend of Chinese concept stocks returning to Hong Kong for listing, with companies like Hesai Technology, Tianjing Biotechnology, WeRide, and Pony.ai announcing their plans or progress for Hong Kong listings [1][2] - Pony.ai plans to issue up to 102.1 million shares and has a current market value exceeding $7 billion, while Tianjing Biotechnology aims for a dual listing in Hong Kong to enhance collaboration with global innovators and diversify its investor base [1][2] - WeRide has received approval from the China Securities Regulatory Commission for its Hong Kong listing, intending to issue up to 102.4 million shares, and is noted for holding autonomous driving licenses in seven countries [1] Group 2 - Hesai Technology became the first lidar company to achieve a dual primary listing on the Hong Kong Stock Exchange, raising approximately HKD 4.16 billion and reaching a market value of HKD 35.85 billion on its first day [2] - Since the reform of the Hong Kong listing system in 2018, over 30 Chinese concept stocks have returned to Hong Kong, including major players like Alibaba, JD.com, and Baidu, representing a significant portion of the internet sector [2] - There are three main methods for Chinese concept stocks to return to Hong Kong: privatization and re-listing, secondary listings, and dual listings, with 34 companies having returned since 2018 [2] Group 3 - The return of Chinese concept stocks to Hong Kong is seen as a strategic move amid U.S. regulatory and geopolitical uncertainties, providing companies with better funding opportunities and faster listing processes [3] - The industry focus of returning companies has primarily been on internet platforms and biotechnology, with expectations for future expansions into emerging sectors such as semiconductors, industrial software, and intelligent driving [3]

Core Insights - Nvidia has established itself as a dominant player in the GPU market, with significant growth expected in its automotive business, projected to reach nearly $11 billion by 2035 at a 20% CAGR [1] - Amazon's acquisition of Zoox aims to develop fully autonomous electric vehicles, leveraging its logistics network for urban ride-hailing services [2] - Alphabet's Waymo is recognized as a leader in the driverless vehicle sector, offering Level 4 robotaxi services and benefiting from substantial financial backing and technological expertise [3] Industry Overview - The driverless vehicle market is anticipated to experience explosive growth over the next two decades, potentially reaching trillions of dollars by 2030, driven by technological advancements and safety improvements [6] - Major traditional automakers and technology companies are heavily investing in driverless vehicle technology, indicating a robust competitive landscape [5] Key Companies - Mobileye Global is positioned as a critical partner in the development of robotaxis, providing Advanced Driver Assistance Systems (ADAS) and various driverless vehicle technologies [8] - Uber Technologies is launching a global robotaxi program in 2026, utilizing Lucid's vehicle architecture and Nuro's Level 4 autonomy system [9] - Hesai Group is a leader in lidar technology, essential for various applications in autonomous vehicles, and has secured design wins with multiple automakers [11] Emerging Technologies - QuantumScape focuses on developing solid-state lithium-metal batteries for electric vehicles, which are expected to play a crucial role in the future of driverless vehicles [12] Investment Considerations - The driverless vehicle industry is set for significant transformation, with multiple companies positioned to benefit as the market evolves [13]

Core Viewpoint - The laser radar industry is experiencing significant growth despite initial skepticism, with companies like Hesai Technology achieving over one million units in annual production, indicating a strong market demand for laser radar technology [6][82]. Group 1: Market Performance - Hesai Technology has become the first company globally to produce over one million laser radars annually, with expectations to triple last year's output of 500,000 units [6][7]. - Another notable company, Suteng Juchuang, reported a total shipment of 266,800 units in the first half of 2025, marking a year-on-year increase of 9.6% [9]. - The domestic shipment of vehicle-mounted laser radars in the first half of this year saw a substantial increase of 71% compared to 2024 [10]. Group 2: Price Reduction and Accessibility - The cost of laser radars has decreased significantly, with prices dropping over 90% from previous years, making them more accessible for various vehicle models [24][28]. - The price of laser radars has reached as low as 1,400 yuan for certain models, allowing for integration into vehicles priced around 100,000 yuan [26][27]. - The introduction of lower-priced models, such as the Aion RT at 165,800 yuan and the Leapmotor B10 at 129,800 yuan, has further lowered the entry barrier for consumers [19][20]. Group 3: Technological Advancements - The transition from mechanical to semi-solid-state laser radars has been a key factor in reducing costs and improving performance, with semi-solid-state models being more compact and reliable [45][54]. - The development of MEMS micro-mirrors has enabled domestic manufacturers to reduce reliance on foreign suppliers, contributing to the rapid advancement of laser radar technology [70][73]. - The industry is moving towards fully solid-state laser radars, which promise even lower noise levels and longer lifespans, although challenges remain in terms of range and precision [75][81]. Group 4: Industry Landscape - The global laser radar market has shifted dramatically in the past five years, with domestic companies like Huawei, Hesai Technology, and Suteng Juchuang rising to prominence as foreign competitors like Velodyne and Bosch have retreated [82][84]. - A complete and mature industrial chain for laser radar has been established in China, supporting large-scale production and significant cost reductions [86]. - Beyond passenger vehicles, laser radars are finding applications in emerging fields such as smart robotics and logistics, indicating a broadening market potential [87][88].

Core Viewpoint - The report from Daiwa predicts a compound annual growth rate of 78% for LiDAR shipments in the Chinese passenger car market from 2025 to 2027, driven by the introduction of L3 autonomous driving systems requiring 4 to 5 LiDAR units per vehicle and stricter safety regulations for smart vehicle systems [1] Industry Summary - The cost reduction of LiDAR technology allows for installation in lower-priced vehicles, particularly those priced between 200,000 to 300,000 RMB, with applications also beginning in vehicles priced at 150,000 RMB [1] - Major European and Japanese automakers are expected to accelerate the deployment of Advanced Driver Assistance Systems (ADAS) starting next year, increasing demand for LiDAR due to the mass production of L2 and L2+ systems and L3 testing [1] Company Summary - The report initiates coverage on Hesai (HSAI.US) with a "Buy" rating, setting a target price of 264 HKD for its H-shares and raising the target price for its US shares to 34 USD [1]