Core Points - Shenzhen Blue Ocean Huateng Technology Co., Ltd. has received an invention patent certificate from the National Intellectual Property Administration for a method, device, equipment, and medium for updating Z signals of incremental square wave encoders [1] - The patent, numbered ZL202411904784.0, was applied for on December 23, 2024, and is expected to enhance system control stability and precision in the field of square wave encoder technology [1] - While the acquisition of this patent does not have a significant impact on the company's recent operations, it contributes to the improvement of the intellectual property protection system, consolidates technological advantages, and enhances core competitiveness [1]

Group 1 - The core viewpoint is that the Chinese electric vehicle (EV) market is undergoing a significant reshuffle, with predictions that only 5-8 brands will survive in the future, including established players like Tesla and BYD [1][2][21] - The concept of a "moat" is crucial for companies to maintain competitive advantages, which can include brand strength, technological superiority, and cost advantages [3][4][8] - The current intense competition in the EV sector is attributed to the diminishing moats, allowing new entrants to compete more effectively with established brands [4][6] Group 2 - Tesla is highlighted as the market leader with several advantages, including technological leadership in Full Self-Driving (FSD), cost control, and a strong brand image [10][11][16] - Despite Tesla's technological edge, it is noted that this advantage may not be sustainable in the long term due to increasing competition from other manufacturers [12][15] - Tesla's cost control strategy has allowed it to reduce production costs significantly, with the Model Y's production cost dropping by 30% from 2020 to 2023, enabling it to engage in price wars effectively [16][17] Group 3 - BYD is recognized for its supply chain advantages and scale, which have allowed it to achieve the lowest costs in the industry, with a market share of 33.2% in 2024 [22][29][26] - BYD's extensive control over its supply chain, from raw materials to battery production, contributes to its competitive edge [24][22] - However, BYD's heavy asset base poses risks, as maintaining such a structure requires substantial ongoing investment [30][33] Group 4 - New entrants like Huawei and Xiaomi are adopting different strategies, with Huawei focusing on a light-asset model that provides technology without heavy investment in manufacturing [36][40][42] - Xiaomi's approach leverages its existing brand trust from the smartphone market to penetrate the automotive sector, achieving remarkable sales figures [50][56][58] - The new forces in the EV market, including NIO, Xpeng, and Li Auto, are still developing their moats, with varying degrees of success in establishing competitive advantages [63][68]

Core Viewpoint - Jefferies reports that CATL's A and H shares declined due to LG Energy Solution reportedly receiving orders for Tesla's lithium iron phosphate (LFP) batteries, but believes CATL still holds a 6-8 year technological advantage in this field [1] Summary by Category Company Performance - CATL's A shares are currently viewed more favorably, with an expected upside of 35% [1] - The premium of CATL's H shares over A shares exceeds 40%, which is expected to be unsustainable in the medium term [1] Market Dynamics - The lock-up period for CATL's H shares lasts until November 2025, after which some cornerstone investors may take profits, leading to a convergence of the premium [1]