Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company is a leading provider of integrated smart cockpit solutions, having successfully transitioned from a focus on vehicle networking systems to smart cockpit solutions since 2018, solidifying its position in the industry [8][13]. - The penetration rate of smart cockpits in domestic and global passenger vehicles is steadily increasing, with projections indicating a rise in China's market penetration from 35.3% in 2019 to 75.9% by 2025, and globally from 38.4% to 59.4% in the same period [8][42]. - The company's revenue growth is primarily driven by the increasing orders for high-end domain controllers, with expectations of a turnaround in net profit by 2025 [8][49]. Summary by Sections Company Overview - The company was established in 2009 and initially focused on vehicle networking systems, later shifting its focus to integrated software, hardware, and cloud services for smart cockpit solutions [8][13]. - It has established six R&D centers and three manufacturing bases, serving over 50 automotive brands, with Li Auto being a key customer driving revenue growth [8][22]. Market Position and Growth - The domestic and global market for smart cockpit solutions is rapidly expanding, with the Chinese market expected to grow from 129 billion RMB in 2024 to 299.5 billion RMB by 2029, reflecting a compound annual growth rate (CAGR) of 18.4% [42][48]. - The company has formed deep partnerships with Qualcomm and Huawei, enhancing its competitive edge in high-end domain controller products [8][56]. Financial Projections - Revenue forecasts indicate significant growth, with total revenue expected to reach 34.58 billion RMB in 2025, 54.52 billion RMB in 2026, and 78.39 billion RMB in 2027, alongside a projected net profit turnaround in 2025 [1][8]. - The company has shown a consistent increase in revenue since 2021, with a compound annual growth rate of 43.5% from 2021 to 2024 [26][30]. Product Development and Strategy - The company emphasizes a "software + hardware + cloud" self-research system, developing core technologies that support the scalability and customization of its smart cockpit solutions [61]. - The high-end domain controller product ratio is increasing, with shipments rising from 1.5% in 2023 to 51.1% in early 2025, indicating a shift towards higher-value products [64].
博泰车联（02889）：软硬云协同筑壁垒，AI赋能打开成长空间