Investment Rating - The industry investment rating is "Overweight (Maintain)" [1] Core Viewpoints - The rise of domestic AI chips accelerates technological self-reliance in China, with significant advancements from companies like Alibaba, Baidu, Huawei, and Haiguang Information [3][4] - The report highlights the competitive edge of domestic chips in the AI sector, showcasing their performance against international counterparts [3] - Investment opportunities are identified in companies involved in computing power, AI data centers, and AI applications [6] Market Review - In the past week (September 15-19), the Shanghai Composite Index fell by 1.30%, while the ChiNext Index rose by 2.34%. The computer (Shenwan) index decreased by 0.16%, outperforming the Shanghai Composite by 1.15 percentage points and underperforming the ChiNext by 2.49 percentage points [2] Weekly Insights - Alibaba's PPU chip surpasses Nvidia's A800 in key specifications, indicating strong domestic competition in AI chip development [3] - Baidu's Kunlun chip shows promising results in AI model training, winning significant market shares in a recent procurement project [3] - Huawei plans to release multiple iterations of its Ascend AI chips over the next three years, indicating a robust product roadmap [3] - Haiguang Information is fostering collaboration across the industry by opening its CPU interconnect bus protocol [3] Investment Recommendations - Suggested companies to focus on include: - Computing Power: Huafeng Technology, Shenling Environment, Cambricon, Haiguang Information, and Ambow Technology - AI Data Centers: Kehua Data, Yunsai Zhili, Hongxin Electronics, Runjian Shares, Runze Technology, and Dataport - AI Applications: Kingsoft Office, iFlytek, Dingjie Shuzhi, Hand Information, Zhuoyi Information, and Puyuan Information [6]

Core Insights - The Hong Kong stock market indices experienced a collective decline, with the Hang Seng Index falling by 1.35%, the Hang Seng China Enterprises Index down by 1.46%, and the Hang Seng Tech Index decreasing by 0.99% [2] - The report highlights a significant interest in the collaboration between Nvidia and Intel, which is expected to impact the semiconductor sector positively [6] Company Overview - Chery Automobile is a leading passenger car manufacturer in China, established in 1997, with five major brands catering to diverse customer needs [8] - The company is projected to achieve revenues of 926.2 billion, 1,632.1 billion, and 2,699.0 billion CNY from 2022 to 2024, with a compound annual growth rate (CAGR) of 70.7% [8] Industry Status and Outlook - The global passenger car industry is entering a mature phase, with total sales expected to reach 74.3 million units in 2024 and a CAGR of 3.5% from 2025 to 2030 [9] - The Chinese passenger car market is robust, with sales projected to reach 22.7 million units in 2024, growing at a CAGR of 1.9% from 2019 to 2024 [9] Advantages and Opportunities - Chery Automobile boasts a diverse brand matrix and strong R&D capabilities, positioning it well for future technological advancements [10] - The company is recognized as a leading Chinese passenger car enterprise with significant global expansion potential [10] Investment Recommendations - The IPO of Chery Automobile is supported by a strong lineup of cornerstone investors, with the offering price set between 27.75 and 30.75 HKD, leading to a post-IPO market capitalization of approximately 160.04 to 177.34 billion HKD [12] - The report suggests that Chery is comparable to other leading domestic brands like Great Wall Motors and Geely, with a lower valuation relative to Geely [12]