BYD(002594) 海通国际·2025-02-12 04:30Investment Rating - The report assigns an "Outperform" rating to BYD, indicating an expected relative return exceeding 10% over the next 12-18 months [23]. Core Insights - BYD's "Eye of the Gods" initiative aims to democratize intelligent driving in China, significantly enhancing the cost-effectiveness of mainstream automotive products and lowering the barriers to entry for intelligent driving technologies [2][8]. - The company has successfully transitioned from reliance on supplier solutions to developing its own intelligent driving technology, expanding its R&D team to over 5,000 personnel [2][8]. - The penetration of high-level intelligent driving technologies is expected to increase, driven by regulatory changes and competitive pressures from companies like Tesla [2][8]. Summary by Sections Event - On February 10, 2025, BYD launched upgrades for 21 models in its Dynasty and Ocean series to the "Advanced Intelligent Driving" version, including the Seagull priced at RMB 70,000, breaking traditional pricing barriers [1][7]. Comments - The "God's Eye" strategy is anticipated to trigger intense competition in the Chinese automotive market, particularly in the mid-to-high-end intelligent driving segment, leading to a revaluation of the industry chain [2][8]. - The report highlights that if 50% of BYD's sales models are equipped with the "God's Eye" solution, approximately 2.75 million new cars will achieve high-speed NOA and above intelligent driving technology within the year [3][9]. Supply Chain Opportunities - The report suggests focusing on incremental components for intelligent driving, including domain controllers, perception sensors, and steer-by-wire chassis, with specific companies recommended for investment [4][10].