Summary of the Conference Call on China Smart Driving Chip Sector Industry Overview - The smart driving chip market in China is projected to reach USD 15.4 billion by 2030, growing at a CAGR of 40% from 2025 to 2030, driven by the increasing adoption of Advanced Driver Assistance Systems (ADAS) features [2][34] - The penetration of Navigate on Autopilot (NOA) features is expected to reach 88% by 2030, creating a significant market opportunity for smart driving chips [2][12] Key Companies Discussed Horizon Robotics - Horizon Robotics is positioned as the domestic leader in smart driving System on Chip (SoC), with a projected 23% vehicle share for L1-L2 SoC and 30% for L2+ SoC in 2024 [3] - The company is expected to capture 29% of the outsourced L2+ & above SoC TAM by value by 2030, supported by its unique hardware-software integrated model [3][14] - Horizon's SoC design is co-optimized with smart driving algorithms, allowing for lower costs and faster iterations, potentially increasing OEM net income by 10-20% on a RMB 150K vehicle [3] - Horizon Robotics is rated Outperform with a price target of HKD 15, indicating a 56% upside potential [3][8] Black Sesame - Black Sesame is the second-largest domestic vendor but faces challenges due to a lack of scale and heavy R&D burdens, which could pressure its financials [4][9] - The company focuses on L2+ SoC, capturing a 9% vehicle share in 2024, but lacks software expertise, slowing customer acquisition compared to Horizon [5] - Black Sesame's current balance sheet can only support R&D investments for 1-2 years, suggesting a need for frequent capital raises, which could dilute shareholder value [5] - Black Sesame is rated Underperform with a price target of HKD 16, indicating a 15% downside potential [5][9] Market Dynamics - Concerns exist regarding OEMs' in-house development of smart driving chips potentially disrupting the outsourcing market; however, it is expected that around 60% of the market will remain open to third-party vendors by 2030 [2][13] - The competitive landscape is evolving, with Horizon Robotics and Black Sesame primarily competing against Nvidia in the L2+ & above market [14] - The increasing consumer preference for smart driving features is a critical differentiator among OEMs, with over 70% of consumers considering ADAS functionalities important in vehicle purchasing decisions [18][21] Financial Metrics - Horizon Robotics has a market cap of HKD 133.3 billion and an enterprise value of HKD 116.3 billion, with a reported EPS of RMB 0.51 for 2024 [6] - Black Sesame has a market cap of HKD 12 billion and an enterprise value of HKD 10.4 billion, with a reported EPS of RMB 1.20 for 2024 [6] Investment Implications - Horizon Robotics is expected to maintain its technological leadership through significant R&D investments, which will also allow for future expansion into robotics and global markets through joint ventures [8] - Black Sesame's lack of software capabilities and scale may hinder its long-term success, necessitating a strategic shift or additional funding to remain competitive [9] Conclusion - The smart driving chip sector in China is poised for rapid growth, with Horizon Robotics positioned as a leader due to its integrated hardware-software solutions, while Black Sesame faces significant challenges that could impact its market position and financial health [8][9]

Core Viewpoint - Canalys recently released the second evaluation results of the "2025 China ADAS SoC Vendor Leadership Matrix," recognizing seven companies as "Champion Vendors," including Nvidia, Qualcomm, Horizon, Texas Instruments (TI), Mobileye, Ambarella, and Chipone, highlighting their significant contributions to the automotive industry's development [1] Group 1: Evaluation Criteria and Results - The evaluation method for ADAS SoC vendors includes feedback from ADAS Tier 1 suppliers, automotive OEMs, and ecosystem partners, combined with professional assessments of vendors' technical solutions and market strategies [2] - A total of 17 ADAS SoC vendors were covered in this evaluation, with the recognized "Champion" vendors demonstrating industry-leading comprehensive strength across multiple key dimensions, including technological innovation, market performance, collaboration depth, and ecosystem influence [2] Group 2: Market Evolution and Trends - In 2024, China's ADAS technology is expected to accelerate, with mainstream L2 solutions maturing and L2+ features, particularly high-speed NOA (Navigation Assisted Driving), being introduced to more cost-effective models [4] - The ongoing "price war" from 2024 to 2025 is shifting from a price-centric competition to a focus on enhancing product value and technological content, driving manufacturers to accelerate the launch of new products and versions to maintain competitive advantages [4] Group 3: Strategic Importance of ADAS - ADAS is now considered a critical component of automotive strategy, significantly influencing product planning and market advancement strategies, with OEMs actively building scalable ADAS solutions supported by robust SoC chips and software platforms [5] - The optimization of ADAS functions is ongoing to address more complex driving scenarios, enhancing the overall safety and practicality of the systems, making platformization and serialization capabilities of ADAS chips a core demand for OEMs [5] Group 4: Competitive Landscape and Global Expansion - As NOA hardware and software improve and become more widespread, the market is witnessing an influx of participants, with OEMs placing greater emphasis on mass production capabilities and rapid iteration of AI models and algorithms to enhance ADAS system effectiveness [6] - With China becoming the world's largest automotive exporter, Chinese automakers are actively expanding into international markets, driving additional demand for ADAS chips, particularly in L2 systems, where SoC vendors offering competitive low to mid-range ADAS solutions will gain a significant advantage [6] Group 5: Global Market Adaptation - The scalability of ADAS SoCs is becoming a crucial success factor, requiring vendors to possess a global perspective in technology and solution design to meet diverse regional demands and standards [7] - Despite challenges posed by changes in U.S. tariffs and potential countermeasures from China, these dynamics present opportunities for innovation and strategic adjustments within the global automotive industry [7]

Champions冠军 持续展现出卓越的综合实力，通过高效的协同合作推动行业进步，充分发挥自身优势，保障 业务的稳定持续，并通过有竞争力的技术方案与前瞻性的战略升级，加速市场拓展，在ADAS SoC领域树立了 标杆地位。 其他厂商则被划分为 Contenders竞争者 （需要提高竞争力和/或改善合作伙伴关系的市场领跑厂商）、 Scalers攀登者 （具备吸引生态伙伴合作特质的潜在"新星"厂商）以及 Foundations初级者 （合作伙伴满意度 较低和/或承诺不足的厂商）。 Canalys近日发布《2025年中国ADAS SoC供应商领导力矩阵》第二期评估结果，共七家厂商荣膺"冠军厂 商"称号，分别是：英伟达、高通、地平线、德州仪器（TI）、Mobileye、安霸和芯擎科技。 该报告通过对厂商在先进ADAS辅助驾驶系统领域的市场表现与合作能力进行综合评估，表彰他们在推动汽车 行业发展方面所做出的突出贡献。其中，英伟达、高通、地平线、德州仪器和安霸成功巩固其领先地位，而 Mobileye与芯擎科技则首次晋级"冠军阵营"，彰显其在中国市场的快速成长与技术突破。 Canalys中国ADAS SoC厂商榜单评选标准 ...