Investment Rating - The report maintains a "Buy" rating on Horizon Robotics, reflecting a positive outlook on the smart driving sector driven by the AD/ADAS trend in China [2]. Core Insights - The report highlights that Black Sesame (2533.HK) is positioned to benefit from the growing demand for AD/ADAS technologies in China, with management targeting double-digit revenue growth in 2025 [1][7]. - The competitive landscape indicates that car OEMs are likely to continue diversifying their chipset suppliers, which will favor companies like Black Sesame and Horizon Robotics that provide advanced automotive chipsets [2][8]. Summary by Sections 2025 Outlook - Black Sesame's A1000 SoC will be featured in Dongfeng's new model, the eπ 007, which boasts 58 TOPS computing power and over 20 smart driving assistance functions, including highway NOA navigation and long-range autonomous parking assistance [4]. Competition Dynamics - Management believes that developing chipsets in-house is challenging for car OEMs due to the time and cost involved, which positions Black Sesame favorably in the market [8]. - The company collaborates with third-party software suppliers to enhance its algorithm development, providing flexibility for customers in choosing software solutions [8]. Company Profile - Black Sesame specializes in AD/ADAS SoCs, offering a range of products such as the A1000 series and Wudang series, which are already adopted by major OEMs like Geely and Dongfeng [3].

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $0.04 million, down from $0.1 million in Q1 2024, reflecting a 60% decrease [11] - Gross profit for Q1 2025 was negative $0.3 million, unchanged from Q1 2024 [11] - Operating loss for Q1 2025 was $13.4 million, compared to a loss of $12.8 million in Q1 2024 [12] - Net loss in Q1 2025 was $13.8 million, compared to a net loss of $12.8 million in Q1 2024 [13] - Cash and cash equivalents as of March 31, 2025, were $36.7 million, with long-term bank deposits at $35.2 million [13] Business Line Data and Key Metrics Changes - The company secured radar systems orders supporting advanced data collection programs, indicating progress in the automotive sector [5] - A significant order for over 1,000 imaging radar chips was placed by Tier one Sensorad, reflecting growing demand in broader industrial and mobility markets [7] Market Data and Key Metrics Changes - In Europe, the company is close to potential design wins with leading OEMs, with revenues projected to begin in 2027 [6] - In China, the launch of the LRR615 radar system marks a critical milestone, designed for the autonomous driving market [6] Company Strategy and Development Direction - The company aims to pursue four design ins with automakers in 2025, with annual revenue expected to be between $2 million and $5 million, weighted towards the end of the year [14] - Collaboration with NVIDIA is a key strategic move, integrating high-resolution imaging radar with NVIDIA's DRIVE AGX platform [8] Management's Comments on Operating Environment and Future Outlook - Management noted that broader economic shifts have led to short-term delays in automakers' rollout of advanced driver assistance systems, but they remain optimistic about future engagements [14] - The company believes that its solid financial foundation positions it well to lead the industry in the adoption of ultra-high-resolution radar [10] Other Important Information - The company raised $33 million through an underwriting registered direct offering in January 2025, enhancing its financial stability [9] - Adjusted EBITDA for 2025 is projected to be a loss between $29 million and $35 million [15] Q&A Session Summary Question: Can you outline the negotiations and discussions with OEMs? - The company is not selling directly to OEMs but through Magna, which is involved in data collection for OEMs. They believe the solution is ready for final selection [17][18] Question: Which geographies are these OEMs headquartered in? - The focus is currently on Europe, with expectations for revenue and production in China to come a year earlier [20] Question: Any momentum in industrial applications? - The company is partnering with Sensorad for industrial applications, which have low volume per application but significant customization needs [21][22] Question: Revenue guidance implies a ramp in the third and fourth quarters; where will this revenue come from? - Revenue will come from a major order from Sensorad and the selection of leading OEMs, with production ramping up in China by Q4 [24][25] Question: Where are other auto customers in the RFP process? - The company is making progress with all programs, but delays are due to market conditions rather than technology [28] Question: Partnerships in China? - The company is working with both NVIDIA and local vendors like Horizon Robotics to provide full solutions for the autonomous market [30] Question: Timeline for volume ramp in China? - Production ramp-up in China is expected by the end of the year, with final stages nearing completion [32] Question: R&D expenditure for the year? - The operational expenditure burn for the year is projected to be between $32 million and $34 million, with R&D estimated at $25 million annually [35] Question: Gross margin expectations during ramp-up? - Gross margin during the ramp-up is expected to be in the range of 50% to 60%, but may drop to 30% to 35% during the initial testing phase [39]

Investment Rating - The report upgrades the investment rating for several companies in the semiconductor sector to "Buy," including Cambricon, SMIC, AMEC, and VeriSilicon [2][62]. Core Insights - The semiconductor industry in Greater China is experiencing a positive trend, driven by increased market demand, particularly in advanced technologies such as generative AI and ADAS [3][4]. - The report highlights a significant year-over-year growth in integrated circuit (IC) production and imports, indicating a recovery from previous weak seasons [1][3]. - The overall semiconductor revenue in China showed a 9% year-over-year increase in March 2025, reflecting a steady recovery from earlier months [4][27]. Summary by Sections IC Production and Imports - IC production volume in March 2025 increased by 9.2% year-over-year, reaching 42 billion units, compared to a 4.4% increase in January and February 2025 [1][25]. - IC import value rose by 11.1% year-over-year to US$35 billion in April 2025, while import volume increased by 7.6% year-over-year to 50 billion units [9][19]. - The average selling price (ASP) of IC imports increased by 3.3% year-over-year in April 2025 [1][21]. Market Demand and Revenue - The report indicates that the semiconductor market is benefiting from strong company-specific drivers, including new product launches and market share gains [2][3]. - Taiwan's semiconductor revenue grew by 34.1% year-over-year in April 2025, with foundry revenues up by 43.7% year-over-year [7][8]. - The total revenue for China's semiconductor sector reached US$15.4 billion in March 2025, marking a continued growth trend [4][27]. Inventory and Supply Chain - The days of inventory (DOI) for China's electronics sector was reported at 53 days in March 2025, consistent with historical averages [1][17]. - The report notes a healthy inventory level, suggesting stability in the supply chain for semiconductor manufacturers [4][17].

Investment Rating - The report assigns a "Buy" rating to several companies in the semiconductor sector, including ACM Research, AMEC, AccoTest, Cambricon, Horizon Robotics, Montage, NAURA, Piotech, and Will Semi [13]. Core Insights - The semiconductor industry in China is expected to see increased capital expenditure (capex) in the coming years, driven by local demand for advanced semiconductor capacities amid tariff uncertainties [2]. - There is a significant focus on high-end lithography systems, which are critical for producing advanced node semiconductors, as existing tools may soon become obsolete [3][4]. - The technology gap in lithography remains substantial, with a need for more skilled talent and a robust supply chain to support research and development [4][6]. Summary by Sections Investment in High-End SPEs - The industry is prioritizing investment in high-end lithography systems due to export controls on existing technologies, with a noted urgent demand for these systems in China [3]. Technology Gap - The complexity of lithography systems presents a significant challenge, requiring time for R&D and a greater pool of talent to expedite development [4][6]. Lithography Ecosystem - The lithography ecosystem in China is still in its early stages, with supply chain companies collaborating to develop necessary systems, although challenges remain in producing highly customized lens components [6].

Investment Rating - The report maintains an "In-Line" view on the industrial sector in China, indicating a balanced outlook on investment opportunities [9]. Core Insights - The report emphasizes the structural competitive advantages that China possesses in emerging sectors, despite facing challenges such as debt, deflation, and demographic shifts [3][8]. - A six-factor framework is introduced to analyze the successful ingredients driving industrial upgrades and to identify future investment opportunities [1][31]. Summary by Sections Industrial Upgrade Focus - China's industrial upgrades are driven by significant opportunities in advanced supply chains and manufacturing sectors, with a focus on machinery, vehicles, new energy, semiconductors, aerospace, AI, software, pharmaceuticals, humanoid robots, and eVOTL [4][5]. - The report identifies 28 stocks that are well-positioned to benefit from these trends, either through supply chain advantages or as key players in new industries [5][49]. Six-Factor Framework 1. **R&D Investment**: R&D spending in China is critical for industrial upgrades, with manufacturing accounting for 60% of total R&D as of 2023. The report notes that while China's R&D as a percentage of GDP is around 2.7%, it is improving [15][35][56]. 2. **Talent Pool**: China has the largest number of engineering graduates globally, with approximately 3 million students graduating in 2022, which supports innovation in emerging industries [37][38]. 3. **Capital Inflows**: Significant capital inflows have been observed, particularly in semiconductors and machinery, with Rmb20 trillion in capital recorded from 2021 to 2024 [39]. 4. **Government Support**: The Chinese government provides substantial support through subsidies, tax incentives, and regulatory frameworks, particularly in new energy, semiconductors, and aerospace [39][40]. 5. **Market Demand**: Strong market demand drives operational efficiencies and encourages companies to invest in R&D and advanced technologies, with consumer discretionary and healthcare sectors expected to grow [40][41]. 6. **Supply Chain Foundations**: The report highlights the importance of moving up the value chain, particularly in industries like semiconductors and machinery, to enhance margins and localization rates [41][43]. Investment Opportunities - The report identifies key industries poised for growth, including semiconductors, aerospace, AI, and pharmaceuticals, and emphasizes the importance of monitoring emerging start-ups [3][34][49]. - AI is highlighted as a significant opportunity, with projections indicating it could contribute Rmb11 trillion to China's GDP by 2035 [45][46]. Stock Recommendations - The report provides a detailed playbook of 28 stocks that are strategically positioned to capitalize on the industrial upgrade theme, spanning various sectors including technology, industrials, and materials [50][51].

在企业、资本和政府的大力支持下，人形机器人行业正在迅 速发展。我们预计到2050年全球市场规模将达到5万亿美元， 在本报告中，我们探讨了产业链上的最佳商业模式和投资机 会。 要点 全球人形机器人潜在市场规模 – 到2050年将达到5 万亿美元：我们的美国研究团队建立了摩根士丹利 的全球人形机器人TAM模型，该模型预测全球人形 机器人市场将超过全球汽车行业。我们预计到2050 年全球人形机器人销售额将达到 4.7 万亿美元，大 概是全球 20 家最大汽车厂商 2024 年总收入的两 倍，而这一数字在未来25年内很可能会大幅减少。 April 30, 2025 06:46 AM GMT 人形机器人 价值5万亿美元的全球市场 This translated report is made available for convenience only and is excerpted from the original research report published in English. In the event of any discrepancy between the translation and the ...

Core Insights - Auto Shanghai 2025 is a significant event showcasing advancements in technology and innovation in the automotive industry, reflecting the global market's shift towards China [1][6] - The exhibition spans over 360,000 square meters with nearly 1,000 exhibitors from 26 countries, marking it as the largest in its history [2] - The event emphasizes electric vehicles, with major Chinese companies like BYD, NIO, XPeng, and Li Auto highlighting China's role in automotive innovation [2][3] Industry Trends - The exhibition features a dedicated area for automotive technology and supply chain, with over 50,000 square meters allocated to this sector [3] - Leading global auto parts suppliers and domestic leaders are showcasing innovations in autonomous driving, AI, and Internet of Vehicles (IoV) solutions [3] - Forums and symposiums, including the 2025 Global Automotive Leaders Roundtable, will discuss key trends such as electrification, autonomous driving, and digital transformation [4] Visitor Engagement - Public days from April 27 to May 2 will offer immersive experiences, integrating automotive innovation with urban culture and interactive elements [5] - Collaborations with tech platforms aim to engage visitors dynamically, highlighting the intersection of the automotive industry with modern lifestyles [5] Organizational Aspects - The event is organized by the Shanghai Council for the Promotion of International Trade and the China Association of Automobile Manufacturers, serving as a hub for global collaboration [6]

| Specifications | God's Eye A (DiPilot 600) | God's Eye B (DiPilot 300) | God's Eye C (DiPilot 100) | | --- | --- | --- | --- | | Computing Power | 600 TOPS | 300 TOPS | 100 TOPS | | Number of LiDARs | 3 | 1 | | | Ultrasonic Radars | 12 | 12 | 12 | | Number of Cameras | 14 | 14 | 12 | | NOA Supported Areas | Highway & Cities | Highway & Cities | Highway | | Availability | Premium segment | Mid-tier segment | Entry & Budget segments | 数据来源：Counterpoint Research Note: NOA (Navigate on Autopilot) 比亚迪近日发布全新自动驾 ...

Core Viewpoint - BYD has launched a new autonomous driving system called "God's Eye," which will be integrated into its entire range of vehicles, including its sub-brands like Tengshi, Fangchengbao, and Yangwang [2][4]. Group 1: Product Specifications - The "God's Eye" series includes three versions with varying specifications: - God's Eye A (DiPilot 600) offers 600 TOPS computing power, 3 LiDARs, 12 ultrasonic radars, and 14 cameras, targeting the premium segment [2]. - God's Eye B (DiPilot 300) provides 300 TOPS computing power, 1 LiDAR, 12 ultrasonic radars, and 14 cameras, aimed at the mid-tier segment [2]. - God's Eye C (DiPilot 100) features 100 TOPS computing power, no LiDAR, 12 ultrasonic radars, and 12 cameras, designed for entry and budget segments [2]. Group 2: Market Strategy - BYD plans to apply the God's Eye A system in high-end models like the Yangwang U9 to compete in the premium autonomous driving market [3]. - The God's Eye B system will be used in mid-range models, competing against brands like Leap Motor, Xiaomi, Huawei, Tesla, NIO, Xpeng, Li Auto, and Zhi Ji [3]. Group 3: Competitive Advantage - The integration of BYD's self-developed SoC chip with strategic partnerships with NVIDIA and Horizon Robotics creates a cost-effective ADAS solution, intensifying market competition, especially in China [4]. - The God's Eye C version is expected to disrupt the entry-level market, being offered for a starting price of 69,800 RMB (approximately 9,555 USD), significantly lower than previous models with L2 ADAS [5]. Group 4: Global Expansion Plans - Although primarily targeting the Chinese market, BYD aims to expand the "God's Eye" system to Southeast Asia, particularly Thailand, with plans for over 10% of sales to come from exports in 2024 [7]. - Collaborations with ride-hailing giant Grab in Southeast Asia may lead to the deployment of BYD's autonomous driving technology in ride-hailing services, enhancing BYD's market presence [7].

Summary of Horizon Robotics Conference Call Company Overview - **Company**: Horizon Robotics (9660.HK) - **Industry**: Automotive technology, specifically focusing on smart driving and advanced driver-assistance systems (ADAS) Key Financial Highlights - **2H24 Revenue**: Rmb1.4 billion, representing a **23% YoY** and **55% QoQ** increase, exceeding Bloomberg consensus by **10%** [4][8] - **Gross Margin (GM)**: Achieved **76.1%**, higher than the expected **72.5%** and consensus estimate of **69.5%** [4][8] - **Operating Income**: Reported at Rmb-1.24 billion, in line with expectations [4][8] - **Net Income**: Turned positive at Rmb7.4 billion, significantly beating expectations of a loss [7][8] - **Product Solutions Delivery**: Expected to reach **2.9 million** in 2024 with **100+ car model design wins** [2][9] Product and Market Developments - **Partnership with Li Auto**: Li Auto plans to adopt Horizon Robotics' J6M chips for its L/MEGA series vehicles, upgrading from J5 solutions, indicating strong supplier credibility [1][9] - **Chip Adoption**: Increasing adoption of Horizon's chips among local OEMs, with a focus on higher-end products like J6M (128 TOPS) and J6P (560 TOPS) [1][9] - **Market Expansion**: Horizon Robotics is expanding its presence among Chinese OEMs, including BYD, Changan, Geely, Chery, and GAC, promoting intelligent driving features [9] Future Outlook - **Revenue Growth Projections**: Expected **50% YoY** growth in 2025, with continued strong growth rates of **60%+ YoY** in 2026-2028 [11] - **Earnings Revisions**: Adjustments made to 2025E-2030E earnings, with a **2%-5%** increase in revenue estimates for 2026-2030 [10][11] - **Target Price**: Raised to **HK$13.33** from **HK$11.77**, based on a revised EV/EBITDA multiple of **30.0x** for 2028E [19] Risks and Challenges - **Competitive Landscape**: Potential risks include increased competition and pricing pressures in the auto supply chain amid slow demand [18] - **Product Mix Upgrade**: Risks associated with slower-than-expected upgrades to AD products and expansion of the customer base [18] - **Supply Chain Risks**: Geopolitical tensions may pose supply chain challenges [18] Conclusion Horizon Robotics is positioned for significant growth driven by partnerships with major OEMs, strong product demand, and a favorable market environment for smart driving technologies. The company’s financial performance in 2H24 indicates robust growth, and the outlook remains positive despite potential risks in the competitive landscape.