GXSH(SZ:000716) Zhi Tong Cai Jing·2025-10-28 06:19Core Viewpoint - Huayuan Securities initiates coverage on Hezhima (000716) Intelligent, giving it a "Buy" rating, with projected revenues of 850 million, 1.616 billion, and 2.344 billion yuan for 2025-2027, representing year-on-year growth rates of 79.23%, 90.12%, and 45.05% respectively [1] Group 1: Market Dynamics and Technology Trends - The year 2025 is anticipated to be a pivotal year for the mid-to-high-end intelligent driving SoC market, driven by the resonance of technology cycles and market demand [1] - The intelligent driving SoC chips are expected to significantly benefit from the growth in autonomous vehicle sales, with the ADAS SoC market in China and globally projected to reach 49.6 billion and 92.5 billion yuan by 2028, with compound annual growth rates of 28.6% and 27.5% from 2023 to 2028 [1] Group 2: Competitive Landscape and Strategic Insights - Long-term, only leading car manufacturers are expected to develop their own chips, while third-party chip manufacturers may see market opportunities exceed expectations [2] - The competition in different levels of intelligent driving solutions will be determined by factors such as cost efficiency, supplier support, and the strategic choices made by companies in their self-research paths [2] Group 3: Company Strengths and Growth Potential - Hezhima Intelligent has a robust hardware capability and is forming alliances with algorithm companies to enhance its competitive edge in the intelligent driving SoC ecosystem [3] - The management team is strategically positioning the company in cross-domain computing chips and robotics, which may become a second growth driver in the long term [3] - The company has a strong cash reserve of 1.97 billion yuan as of the end of H1 2025, providing a solid foundation for ongoing product development and exploration of new business scenarios [3]