Desay SV(SZ:002920) SPDB International·2026-01-19 10:24Investment Rating - The report gives an "Overweight" rating for the intelligent driving Tier 1 industry [3][7][10]. Core Insights - The intelligent driving sector is experiencing rapid growth, driven by the expansion of domain controllers as the core decision-making component of intelligent driving systems. The market for intelligent driving domain controllers is expected to reach RMB 428.4 billion by 2029, with China accounting for nearly 40% of this market [3][7][10]. - Domestic automakers are pushing for "intelligent driving equality," which is leading to a significant increase in the penetration rate of intelligent driving domain controllers. The penetration rate reached 27.6% from January to October 2025 [10]. - The report highlights the potential for domestic Tier 1 suppliers to expand into international markets due to their technological advantages and cost efficiencies [3][10]. Summary by Sections Industry Overview - The automotive industry is undergoing a transformation driven by the evolution of supply chains and the integration of intelligent driving technologies. The shift from traditional supply chain structures to more integrated and collaborative models is evident [11][15][16]. Current Industry Status - The penetration rate of advanced driver-assistance systems (ADAS) in new energy vehicles has significantly increased, with L2 and above ADAS installation rates reaching 87% in the first ten months of 2025, up 19.5 percentage points year-on-year [44][50]. - The report notes that the market for high-level intelligent driving features is expanding, with a notable increase in the availability of models equipped with Navigate on Autopilot (NOA) capabilities [44][48]. Market Outlook - The report anticipates continued growth in the intelligent driving sector, with domestic brands expected to capture over half of the market share for intelligent driving domain controllers by the end of 2025 [10][33]. - The report emphasizes the importance of technological advancements and the integration of AI in driving automation, which is expected to create new growth opportunities in the robotics sector [10][34]. Competitive Landscape - The competitive landscape for intelligent driving Tier 1 suppliers is evolving, with domestic players gaining market share and establishing themselves as key players in the industry [3][10]. - The report covers three specific companies: Youjia Innovation (2431.HK), Desay SV (002920.CH), and Zhixing Technology (1274.HK), all of which are given a "Buy" rating [3][10][8].