GXSH(SZ:000716) Ge Long Hui·2025-09-05 10:49Core Viewpoint - Black Sesame Intelligence is a pioneer in domestic intelligent driving solutions, focusing on mid/high computing power chips for passenger vehicles, while gradually expanding into low computing power product lines and multi-end applications [1] Financial Performance - In 1H25, the company achieved revenue of 253 million yuan, a year-on-year increase of 40.4%, with revenue from assisted driving solutions reaching 234 million yuan, up 41.6% year-on-year [1] - Gross margin decreased by 25.2 percentage points to 24.8%, primarily due to increased hardware component and labor costs from the expansion of assisted driving products [1] - R&D and management expenses were 620 million yuan and 170 million yuan, respectively, down 10.1% and 6.8% year-on-year [1] - The company reported a net loss attributable to shareholders of 762 million yuan [1] Product Development and Market Position - The company is expanding its AI low-power chip product line through acquisitions based on its Huashan/Wudang chip series [1] - The intelligent driving chip business includes three core series: A1000, C1200, and A2000, with A1000 already implemented in several models from Geely and Dongfeng [1] - The C1200 chip has completed functions for highway and urban memory navigation, set to be mass-produced with multiple leading new energy vehicle manufacturers [1] - The A2000 chip supports Transformer/VLA large model algorithms, focusing on urban NOA scenarios, with expected mass production by the end of the year [1] Strategic Partnerships and Market Expansion - The company continues to deepen collaborations with leading automakers such as Geely, BYD, Dongfeng, and FAW, and has secured new overseas model contracts in 1H25, with plans to start overseas sales in the second half of the year [2] - In the commercial vehicle sector, the company has partnered with most major clients, covering light trucks, heavy trucks, and specific route unmanned vehicles, which is expected to further enhance market share [2] - The company is also expanding its chip applications in the L4 field and has delivered L4-level autonomous driving solutions in ports and parks [2] Future Outlook and Valuation - The company is expected to accelerate shipment volumes in 2025 due to strengthened partnerships with major manufacturers [2] - Revenue projections for 2025, 2026, and 2027 are 840 million yuan, 1.42 billion yuan, and 2.04 billion yuan, representing year-on-year growth of 76.8%, 69.3%, and 44.0% respectively [2] - The company maintains a target price of 24.46 HKD based on a 2025E 17.0X PS valuation, with a "buy" rating [3]