Core Viewpoint - The company, Leadic, is increasingly applying ball screw and planetary roller screw as core precision transmission components in the automotive industry, enhancing control precision and response reliability for advanced driving assistance and autonomous driving functions [2] Group 1: Product Application - Ball screw products produced by the company are primarily used in steer-by-wire and brake-by-wire systems [2] - These products provide critical hardware support for advanced driver assistance systems and autonomous driving capabilities [2]

Core Insights - The 2025 Qilu Autumn Auto Show will take place from September 4 to 8 at the Shandong International Convention and Exhibition Center, featuring the highly anticipated electric SUV, Li Auto i8 [1] Company Overview - Li Auto i8 was launched on July 29, offering three models: Pro, Max, and Ultra. The vehicle addresses the common pain points of short range and high energy consumption in large six- and seven-seat electric SUVs, achieving a balance between range, space, convenience, and comfort [4] - Post-launch, market feedback has exceeded expectations, with over 98% of users preferring the Max and Ultra versions [4] Product Adjustments - On August 5, Li Auto announced adjustments to the i8 model based on customer feedback, reducing the price of the i8 Max from 349,800 yuan to 339,800 yuan and including a complimentary 10,000 yuan platinum sound system [4] - Customers who initially chose the Ultra version can now obtain all configurations for 349,800 yuan, while Pro version customers are offered exclusive services for cancellation or upgrades [4] Consumer Response - The swift response to customer feedback has delighted potential buyers, with consumers expressing increased interest in the i8 Max version following the price adjustment [7] - The adjusted i8 features a 97.8 kWh lithium-ion battery with a CLTC comprehensive range of 720 kilometers, advanced driver assistance systems, dual motor intelligent all-wheel drive, and a 0-100 km/h acceleration time of 4.5 seconds [7] - The standard configuration includes dual 15.7-inch displays and a heads-up display, with optional upgrades for a 21.4-inch rear entertainment screen, simplifying the purchasing decision for consumers [7]

Core Points - A lawsuit has been filed against Tesla regarding a fatal Autopilot accident from 2019, with claims totaling $345 million, including $109 million in compensatory damages and $236 million in punitive damages [1][4]. Group 1: Incident Details - The accident occurred in Key Largo, Florida, involving George McGee driving a Tesla Model S equipped with Enhanced Autopilot, which was active at the time [3]. - McGee was distracted while driving, leading to a high-speed collision that resulted in the death of 22-year-old Naibel Benavides and serious injuries to her boyfriend, Dillon Angulo [3][4]. Group 2: Legal Proceedings - McGee was charged with negligent driving in October 2019, and it is suggested that Benavides' family may have reached a settlement with him that same year [4]. - The lawsuit claims that the Autopilot system has dangerous defects and that Tesla and CEO Elon Musk made misleading statements to consumers and shareholders [4][5]. - A Miami judge has ruled that the case can proceed to trial, indicating that a jury could find Tesla negligent in prioritizing product development and profits over safety [5]. Group 3: Public Concerns - Ongoing concerns about the accuracy and safety of Tesla's Autopilot system have led to protests against the company's Robotaxi service in Texas [6].

Core Viewpoint - Li Auto officially launched its first pure electric SUV, the Li Auto i8, with a retail price range of 321,800 to 369,800 yuan, set to begin deliveries on August 20 [1] Group 1: Product Features - The Li Auto i8 is equipped with a ternary lithium 5C supercharging battery, offering two battery versions of 90.1 kWh and 97.8 kWh, with CLTC ranges of 670 km and 720 km respectively, achieving a charging speed that adds 500 km of range in just 10 minutes [1] - The vehicle features a yacht-style design with a drag coefficient of 0.218, enhancing energy efficiency and reducing wind noise [2] - It includes a dual-motor all-wheel drive system with a maximum power of 400 kW and peak torque of 660 Nm, enabling a 0-100 km/h acceleration in 4.5 seconds [2] Group 2: Safety and Technology - The Li Auto i8 comes standard with 9 airbags and the longest side curtain airbags in its class, along with laser radar and enhanced active safety capabilities [2] - The vehicle incorporates an upgraded advanced driver assistance system (VLA architecture) that evolves through reinforcement learning, adapting to user driving behavior and preferences [3] - The intelligent assistant has evolved into a "smart entity," capable of performing complex tasks and understanding user memory [3] Group 3: Market Positioning and Options - The Li Auto i8 offers three versions: Pro, Max, and Ultra, priced at 321,800 yuan, 349,800 yuan, and 369,800 yuan respectively [3] - It provides five exterior color options and three interior color choices, along with standard 20-inch low-drag wheels and optional 21-inch wheels [3]

Group 1 - The core viewpoint is that Horizon Robotics is well-positioned to benefit from the growth potential of global smart driving, with projected global and Chinese smart vehicle sales reaching approximately 80 million and 30 million units by 2030, respectively, and high-level assisted driving and autonomous driving penetration rates approaching 100% [1] - Horizon Robotics holds over 40% market share in the Chinese OEM advanced driver assistance market as of 2024, indicating a strong leadership position [1] - The unique BPU (intelligent computing unit) architecture of Horizon Robotics is a key competitive advantage, enabling higher computing power density and intelligence at lower power consumption and cost [1] Group 2 - Horizon Robotics is expected to ship a cumulative total of 7.7 million units of its Journey series chips by the end of 2024, with projected shipments of 4.2 million, 4.5 million, and 5.5 million units for 2025, 2026, and 2027, respectively [2] - The company anticipates revenue of 3.43 billion, 5.41 billion, and 7.46 billion yuan for the years 2025, 2026, and 2027, respectively, with a forecasted return to profitability in 2027 [2] - A "buy" rating is assigned to Horizon Robotics with a target price of 8.60 HKD, based on a 20x P/S valuation for 2026, using comparable companies such as Nvidia, ARM, Mobileye, and Black Sesame Intelligence [2]

Investment Rating - The report initiates coverage with a "Buy" rating for Horizon Robotics, setting a target price of HK$8.60, representing a potential upside of 33% from the current price of HK$6.46 [1][6][10]. Core Insights - Horizon Robotics is positioned as a key beneficiary in the high-end assisted driving industry, with a strong market share exceeding 40% in China's OEM advanced driver assistance systems (ADAS) market as of 2024 [7][29]. - The company is expected to benefit significantly from the global growth potential of smart driving, with projections indicating that global and Chinese smart vehicle sales will reach approximately 80 million and 30 million units by 2030, respectively [7][29]. - The unique BPU (Brain Processing Unit) architecture of Horizon Robotics provides a competitive edge by optimizing hardware and software collaboration, achieving higher computational efficiency at lower power consumption [30][42]. Financial Projections - Revenue forecasts for Horizon Robotics are projected at RMB 3.43 billion, RMB 5.41 billion, and RMB 7.46 billion for the years 2025, 2026, and 2027, respectively, reflecting year-on-year growth rates of 43.7%, 57.9%, and 37.9% [9][31]. - The company is expected to achieve profitability in 2027, with a projected net profit of RMB 901 million, following losses in the preceding years [9][31]. Market Comparison - The report compares Horizon Robotics with peers such as NVIDIA, ARM, Mobileye, and Black Sesame Intelligence, applying a 20x price-to-sales (P/S) ratio to derive the target price [32][71]. - The competitive landscape indicates that Horizon Robotics has established itself as a leader in the mid-to-low-end smart driving hardware market, with plans to penetrate the high-end market further with the launch of the Journey 6 series chips [71][72]. Product Solutions - Horizon Robotics offers three main smart driving solutions: Horizon Mono, Horizon Pilot, and Horizon SuperDrive, catering to different levels of driving assistance [44][60]. - The Journey 6 series chips, set to launch in 2025, will cover a wide range of smart driving needs, enhancing the company's product matrix [62][67].

Core Viewpoint - The article discusses the strategic decisions made by Li Auto regarding its autonomous driving technology, particularly the choice to standardize laser radar in its vehicles and the implications of chip selection on performance and safety. Group 1: Decision on Autonomous Driving Features - Li Auto decided not to support high-level urban auxiliary driving in certain models due to a significant market demand for lower-cost options, indicating that consumers are willing to forgo advanced features for a lower price [1] - The company compared various autonomous driving chips and chose the J5 chip, which, while not suitable for laser radar, was deemed the best option at the time. The J6M chip, although having similar computing power, will not be available until 2025, making it impractical for the 2023-2024 models [1][3] Group 2: Rationale for Laser Radar Standardization - The decision to standardize laser radar was influenced by advancements in the industry, which have made the immediate safety benefits of laser radar significant enough to warrant its inclusion. This shift is expected to reach a critical point by the second half of 2024 [1][6] - Li Auto's confidence in the safety value of laser radar led to its decision to include it as standard equipment, taking into account the overall industry progress and the company's own product update cycle [1] Group 3: Technical Considerations of Chips - The J6M chip's architecture, including CPU, bandwidth, and AI capabilities, has been significantly upgraded compared to the J5, allowing it to effectively integrate with laser radar, despite both chips having the same computing power [4] - The J5 chip was chosen for its visual-centric design and was considered adequate for the entry-level autonomous driving configuration, utilizing a 10-camera setup, which was competitive at the time [3] Group 4: Customization of Laser Radar - The ATL laser radar used by Li Auto is a customized version that offers superior performance compared to standard models, with better resolution and detection capabilities, tailored specifically for Li Auto's algorithms [5] - The collaboration between Li Auto and the radar manufacturer has led to optimizations that enhance the product's effectiveness, making it unique to Li Auto's vehicles [5] Group 5: Safety as a Priority - The inclusion of laser radar in the new model is primarily for safety reasons, as it performs better in challenging conditions such as low light and glare, thus enhancing overall vehicle safety [6][7] - Li Auto emphasizes that the addition of laser radar does not increase the vehicle's price, reflecting a commitment to providing enhanced safety features without additional costs to consumers [7]

Core Viewpoint - In 2024, Horizon Robotics-W (09660) is projected to achieve total revenue of 2.38 billion yuan, representing a year-on-year growth of 53.6%, with a net profit of 2.35 billion yuan, and a narrowed adjusted operating loss of 1.495 billion yuan compared to 1.687 billion yuan in 2023 [1][2] Revenue and Profit Analysis - The company is expected to generate total revenue of 2.38 billion yuan in 2024, marking a 53.6% increase year-on-year [2] - The net profit for 2024 is projected at 2.35 billion yuan, a significant recovery from a net loss of 6.739 billion yuan in 2023, primarily due to a fair value change gain of 4.677 billion yuan from preferred shares and other financial liabilities [2] - Adjusted operating loss is forecasted at 1.495 billion yuan, an improvement from 1.687 billion yuan in 2023 [1][3] Business Segment Performance - Revenue from automotive solutions is expected to reach 2.312 billion yuan in 2024, reflecting a year-on-year increase of 57.2% [2] - Revenue from automotive product solutions is projected at 664 million yuan, up 31.2% year-on-year, driven by increased delivery volumes [2] - Revenue from licensing and service business is anticipated to be 1.658 billion yuan, a 70.9% increase, attributed to high demand for algorithms, software development tools, and technical services [2] Cost Efficiency and Profitability - The company's gross margin is expected to be 77.25% in 2024, an increase of 6.7 percentage points year-on-year, driven by a higher proportion of high-margin licensing and service revenue [3] - Gross margins for different business segments are projected as follows: automotive product solutions at 46%, licensing and service at 92%, and non-automotive solutions at 23%, with respective year-on-year increases of 2, 3, and 10 percentage points [3] - The company's operating expenses ratio is forecasted to be 176.36%, a decrease of 25.81 percentage points year-on-year [3] Delivery and Model Designation - The delivery volume for automotive product solutions is expected to reach approximately 2.9 million units in 2024, with a cumulative delivery volume of around 7.7 million units [4] - The company has secured over 100 model designations in 2024, increasing the total number of model designations to over 310 by December 31, 2024 [4] Product Development and Market Expansion - The company will launch the Journey 6 series processing hardware in 2024, aimed at enhancing advanced driver assistance and high-level autonomous driving solutions, with production starting in February 2025 [5] - The Journey 6 series has already been adopted for mass production by BYD's Tian Shen Eye C and will be implemented across more than 20 automotive manufacturers and brands [5] - From 2025 onwards, over 100 models equipped with the Journey 6 series are expected to be launched, covering a wide range of market segments from domestic to international brands, and from economy to luxury vehicles [5]