As Chery makes its stock market debut, the carmaker is shaking off its sanctions risk and looking to lucrative markets in the West, writes @julianaliu (via @opinion) https://t.co/lFiIMvxhZh ...

Core Insights - The ASEAN LV market experienced a growth of 3% YoY in H1 2025 but began H2 with a decline of 1% YoY, primarily due to negative sales in Indonesia, Malaysia, and the Philippines [1] Indonesia Market Summary - LV sales in Indonesia fell by 17% YoY in July and continued to decline by 19% YoY in August, marking four consecutive months of double-digit declines, leading to an overall decrease of 10% YoY from January to August [2] - Political uncertainty and the potential for protest recurrence, along with a decrease in consumer income and increased debt payments, have led to a downward revision of the long-term sales outlook for Indonesia [3] - The projected LV volumes for Indonesia in 2025 are now estimated at 720k units, the lowest annual total in 15 years, excluding the COVID-19 pandemic year of 2020 [3] Malaysia Market Summary - In Malaysia, LV sales dropped by 2% YoY in July, totaling 71k units, but August saw a 3% YoY increase and a 5% MoM increase to 75k units, the highest monthly sales total for the year [4] - The growth in August was driven by new model deliveries from Chinese brands and national brands, alongside ongoing price reductions stimulating sales [4] - The sales outlook for Malaysia in 2025 has been revised slightly upward to 790k units, with expectations of a boost in Q4 2025 as consumers rush to purchase before anticipated price hikes in 2026 due to changes in tax calculation methodology [5]

Chery is set to price its Hong Kong IPO at the high end of a marketed range after strong demand for the stock, according to sources https://t.co/hTN4XsOzxZ ...

Group 1 - Zijin Gold International, a subsidiary of Zijin Mining, is raising HK$24.98 billion through an IPO in Hong Kong, offering 349 million shares at HK$71.59 each, with trading starting on 29 September [1] - The IPO values Zijin Gold at approximately $24.1 billion and occurs during a period when gold prices have increased nearly 39% this year [1] - This IPO will be the largest in Hong Kong for 2025, surpassing the recent $1.2 billion IPO by Chery [2] Group 2 - Proceeds from the IPO will be used over the next five years to upgrade and build mines to enhance production capacity [2] - Cornerstone investors have committed to purchasing around $1.6 billion in shares, including GIC and Hillhouse, each acquiring $150 million [3] - Morgan Stanley and CITIC Securities are acting as joint sponsors for the offering [3] Group 3 - The spin-off and independent listing of Zijin Gold is expected to diversify financing channels and improve overall financing efficiency for Zijin Mining [4] - In June, Zijin Mining agreed to acquire the Raygorodok gold mine in Kazakhstan for $1.2 billion [4]

Group 1 - The IAA Mobility 2025 showcased a significant presence of both Chinese and European automotive manufacturers, highlighting the ongoing rivalry between Europe and China in the automotive sector [2][3] - A notable number of Chinese OEMs were present, including Aito, BYD Auto, Changan, Chery, Dongfeng, FAW, GAC Group, Leapmotor, and Xpeng, while European manufacturers also increased their participation [2] - The availability of Chinese models in Europe is uncertain, with many models displayed requiring reconfiguration for the European market, indicating potential delays in market penetration [4] Group 2 - The homologation process for Chinese models is lengthy and costly, which may hinder the rapid introduction of these vehicles into the European market [4] - The evolution of models, such as the BYD Seagull to the Dolphin Surf, exemplifies the adjustments needed for compliance with European standards [4]

Core Insights - Hesai Group, a Chinese producer of LiDAR systems, debuted on the Hong Kong Stock Exchange on September 16, 2025, with a share price increase of 7% on the first trading day [1] - The company raised approximately HKD 4.2 billion (US$ 533 million) from the new share offering, which will be utilized for future growth initiatives [2] - In the first half of 2025, Hesai delivered 547,900 LiDAR systems, marking a 276% increase year-over-year, driven by demand from Chinese automakers [2] Company Developments - Hesai has secured over 120 series production programs from 24 automakers, with deliveries planned for 2025-2027 [3] - Key customers include major automotive brands such as a top European OEM, Li Auto, Changan, Geely, Great Wall Motor, Chery, Zeekr, Leapmotor, SAIC Audi, SAIC-GM, and a Toyota joint-venture [3] - The company has developed its fourth-generation digital single-photon platform, which integrates seven key components, enhancing performance while reducing costs [3] Technological Advancements - The co-founder and chief scientist of Hesai, Dr. Kai Sun, highlighted the significant reduction in LiDAR costs from USD 100,000 to USD 200, making advanced safety technologies accessible for mass vehicle production [4] - The company is committed to delivering core technologies that align with the emerging AI-driven Fourth Industrial Revolution [4]

Chery is seeking to raise as much as HK$9.1 billion in a Hong Kong IPO, kicking off what’s shaping up to be a busy season for big listings in the financial hub https://t.co/uwR5KPfL06 ...

Group 1: Vehicle Sales Performance - New vehicle sales in Indonesia declined by 19% in August 2025, totaling 61,780 units compared to 76,302 units in August 2024 [1] - In the first eight months of 2025, the vehicle market shrank by 11% year-on-year to 500,951 units, following a 17% decline to 560,552 units in the same period last year [3] - Sales of light passenger vehicles fell by 11% to 387,110 units, while commercial vehicle sales declined by 9% to 113,841 units [3] Group 2: Market Dynamics - Market sentiment has weakened significantly, with fewer consumers making large purchases despite economic growth accelerating to 5.1% year-on-year in Q2 2025 [2] - Bank Indonesia cut its benchmark interest rate by 25 basis points to 5.00% in August, down from a peak of 6.25% a year earlier, to stimulate consumer spending [2] Group 3: Competitive Landscape - Japanese automakers face increased pressure from the growing presence of Chinese brands, particularly in the battery electric vehicle (BEV) segment [4] - BEV sales surged threefold to 53,100 units in the first eight months of 2025, with BYD and its Denza brand leading with 25,537 units [4] Group 4: Production and Exports - Overall vehicle production in Indonesia fell by over 3% year-to-date to 757,220 units, despite a 12% rise in exports of fully-assembled vehicles to 335,063 units [5]

Summary of Tuopu's 2Q25 Earnings Call Company Overview - **Company**: Ningbo Tuopu Group Co., Ltd. - **Industry**: Autos & Auto Parts - **Ticker**: 601689 CH - **Market Cap**: RMB105.6 billion ($14.8 billion) [8] Key Financial Results - **2Q25 Revenue**: RMB7.2 billion, up 10% YoY [1][2] - **2Q25 Earnings**: RMB729 million, down 10% YoY [1][2] - **Gross Profit Margin (GPM)**: 19.3%, down 0.6/1.1 percentage points QoQ/YoY [1][2] - **D&A Cost to Revenue Ratio**: Estimated to have risen to approximately 7% in 1H25, up 1 percentage point YoY [2] Management Outlook - **Revenue Growth Target**: Aiming for 20% YoY revenue growth in 2026 [1][2] - **Long-term Growth Expectation**: Management expects double-digit growth from 3Q25 through 2030, supported by contributions from major clients like Xiaomi, Seres, and Geely [2] - **2025 Revenue Target**: RMB30 billion [2] Business Expansion - **Overseas Markets**: Focus on Europe and the US as key growth drivers, with major customers including Ford, GM, Stellantis, Volkswagen, BMW, and Mercedes [3] - **Production Capacity**: Plans for a second phase at the Poland factory due to increased demand from Mercedes and BMW; Thailand plant aimed at humanoid robots and supporting local Chinese OEMs like BYD and Chery [3] Humanoid Robots Development - **Current Production Challenges**: Inefficiencies in producing humanoid robot actuators due to a wide variety of specifications (48 in total) and lack of full automation [4] - **Future Orders**: Expected to start receiving orders for the next-generation Optimus in 1Q26 [4] - **R&D Investment**: Annual investment of approximately RMB100 million with a robotics team of 138 members [4] Liquid Cooling Business - **Market Potential**: Strong potential identified in transitioning from automotive thermal management to liquid cooling solutions for AI data centers [5] - **Core Products**: Cooling plates and CDU components [5] - **Order Backlog**: Liquid cooling order backlog has reached RMB1.7 billion [5] Valuation and Price Target - **Price Target**: RMB72.5 based on a 35x 2026E P/E [6][14] - **Current Price**: RMB62.61, representing a potential upside of 16% [8] Financial Estimates - **Revenue Estimates**: - 2025: RMB29.04 billion - 2026: RMB33.18 billion - 2027: RMB39.85 billion [7] - **Net Profit Estimates**: - 2025: RMB3.06 billion - 2026: RMB3.49 billion - 2027: RMB4.25 billion [7] Risks - **Potential Risks**: Lower-than-expected NEV sales and slower development of humanoid robots [24] Sustainability Goals - **Carbon Neutrality Targets**: Aiming to achieve carbon peak by 2030 and carbon neutrality by 2060 in line with China's decarbonization goals [17] Conclusion - **Investment Recommendation**: Maintain Buy rating with a focus on growth opportunities in both the automotive and emerging technology sectors, particularly humanoid robots and liquid cooling solutions [6][11]

Summary of Horizon Robotics Conference Call Company Overview - **Company**: Horizon Robotics - **Ticker**: 9660.HK - **Industry**: China Autos & Shared Mobility - **Market Cap**: Rmb97,476.6 million - **Fiscal Year Ending**: December 2025 Key Financial Highlights - **1H25 Shipments**: Total shipments doubled year-over-year to 1.98 million units, with nearly 50% from AD products compared to less than 20% in 1H24, driven by major customers BYD and Li Auto, which accounted for over 50% of AD shipments [2] - **Full-Year Guidance**: Management maintains a full-year shipment guidance of approximately 4 million units, supported by increased orders from Geely, Chery, and Chang'an in 2H25 [2] - **Gross Profit Margin (GPM)**: GPM fell 13.6 percentage points year-over-year to 65.4% in 1H25, attributed to a shift in revenue mix away from licensing revenue. Management expects blended GPM to stabilize between 60-70% [3] - **R&D Expenses**: R&D expenses increased by 62% year-over-year to Rmb2.3 billion, reflecting investments in computing power for cloud training. Management indicated that while R&D expenses will continue to rise, other expenses such as headcount will be contained [3] Product Developments - **New Chip Launch**: The newly launched J6B chip is expected to see growing demand overseas for ADAS applications, with higher average selling price (ASP) and margin compared to legacy models [4] - **Upcoming Products**: The J6P and HSD debut on Chery and Chang'an in 2H25, along with the upcoming J6B, are anticipated to support further ASP growth [2] Market Position and Opportunities - **Market Share Gains**: Horizon Robotics is gaining market share in the AD chip market, with key bright spots including ASP expansion and overseas project wins, including several global projects from two Japanese OEMs projected to yield 7.5 million shipments over their lifecycle [8] - **Customer Base Expansion**: The company has secured 30 projects from nine joint venture brands in China, indicating a broadening customer base [8] Financial Projections - **Adjusted Net Loss**: Horizon reported an adjusted net loss of Rmb1.3 billion in 1H25, widening from Rmb804 million in 1H24 due to lower GPM and higher R&D spending [8] - **Revenue Forecast**: Projected revenue for the fiscal year ending December 2025 is Rmb3,590 million, with an expected EBITDA loss of Rmb2,539 million [5] Risks and Considerations - **Upside Risks**: Faster-than-expected ADAS/AD adoption growth in China and expanding customer base with additional key customers [11] - **Downside Risks**: Slower-than-expected ADAS/AD adoption, supply chain disruptions, and successful in-house hardware design initiatives by OEMs [11] Analyst Ratings and Price Target - **Stock Rating**: Overweight - **Price Target**: HK$10.50, representing a 32% upside from the current price of HK$7.94 [5] Conclusion Horizon Robotics is positioned for growth in the AD chip market, with strong shipment performance and new product launches. However, the company faces challenges related to profitability and competition in the rapidly evolving automotive technology landscape.