Core Viewpoints - The company achieved a sales revenue of 1.567 billion yuan in the first half of 2025, representing a year-on-year growth of 67.06%, while the net profit was -5.233 billion yuan, compared to -5.089 billion yuan in the same period last year [1] - The market share for basic and overall assisted driving solutions among Chinese car manufacturers reached 45.8% and 32.4% respectively, maintaining the leading position [1] - The company’s processor shipments doubled to 1.98 million units, with hardware supporting highway assisted driving reaching 980,000 units, a sixfold increase from the previous year [1] Financial Performance - The sales gross margin and net margin for the first half of 2025 were 65.36% and -334.00% respectively, down from 79.04% and -543.59% in the same period last year [1] - Research and development expenses increased by 62% year-on-year, primarily due to rising cloud service costs and increased salaries for R&D personnel [1] Market Expansion - As of June 2025, the company has secured nearly 400 new model designations, with over 100 models featuring highway assisted driving capabilities [2] - The company is actively developing the HSD solution to address more complex driving scenarios, which has already received designations from multiple vehicle manufacturers [2] Profit Forecast and Investment Recommendations - Revenue projections for the company are estimated at 3.524 billion yuan, 5.254 billion yuan, and 7.898 billion yuan for 2025, 2026, and 2027 respectively, with net profits expected to be -1.836 billion yuan, -1.019 billion yuan, and 0.211 billion yuan [3] - The company is viewed positively as a key supplier of domestic intelligent driving chips and algorithms, benefiting from the trend of automotive intelligence [3]

Core Viewpoint - In the first half of 2025, the company achieved a revenue of 1.57 billion yuan, representing a year-on-year growth of 67.1% [2][6][7] Revenue and Profitability - The company's net profit for the first half of 2025 was -5.23 billion yuan, slightly worse than -5.10 billion yuan in the first half of 2024 [2][7] - Adjusted operating loss was -1.11 billion yuan, compared to -820 million yuan in the same period last year [2][7] - The gross profit margin for the first half of 2025 was 65.36%, a decrease of 13.7 percentage points year-on-year [3][15] - The net profit margin improved by 209.6% year-on-year, reaching -334% [3][15] Business Segmentation - Revenue from automotive solutions was 1.516 billion yuan, an increase of 66.1% year-on-year [11] - Revenue from automotive product solutions surged by 250.0% to 778 million yuan, driven by the rapid growth in shipments of the Chengcheng 6 series hardware [11] - Revenue from licensing and service business was 738 million yuan, up 6.9% year-on-year, as more clients integrated the company's IP into their software stacks [11] - Non-automotive solutions revenue reached 50 million yuan, a significant increase of 134.5% [11] Market Position and Growth Drivers - The company maintained the leading market share in basic and overall assisted driving solutions in China, with shares of 45.8% and 32.4% respectively [20] - The shipment volume of the Chengcheng series hardware reached 1.98 million units, doubling year-on-year [3][22] - The number of new model approvals reached nearly 400, with over 100 models approved for highway-assisted driving and above [3][22] Product Development and Partnerships - The Chengcheng 6 series chips are accelerating in mass production, with abundant orders on hand [4][6] - The company is collaborating with Bosch to develop a new multifunctional camera platform based on the Chengcheng 6B, expected to enter mass production by mid-2026 [5][33] - The Horizon SuperDrive (HSD) system, based on the Chengcheng 6P, is set to become a benchmark for urban assisted driving solutions [30][35] Global Expansion and Future Outlook - The company is expanding its global business layout and deepening cooperation with leading international automotive manufacturers [47] - The expected cumulative shipment of the Chengcheng series processing hardware is projected to exceed 10 million units by 2025, marking a significant milestone for the company [32][40]

Core Viewpoint - Black Sesame Intelligence is a pioneer in domestic intelligent driving solutions, focusing on mid/high computing power chips for passenger vehicles, while gradually expanding into low computing power product lines and multi-end applications [1] Financial Performance - In 1H25, the company achieved revenue of 253 million yuan, a year-on-year increase of 40.4%, with revenue from assisted driving solutions reaching 234 million yuan, up 41.6% year-on-year [1] - Gross margin decreased by 25.2 percentage points to 24.8%, primarily due to increased hardware component and labor costs from the expansion of assisted driving products [1] - R&D and management expenses were 620 million yuan and 170 million yuan, respectively, down 10.1% and 6.8% year-on-year [1] - The company reported a net loss attributable to shareholders of 762 million yuan [1] Product Development and Market Position - The company is expanding its AI low-power chip product line through acquisitions based on its Huashan/Wudang chip series [1] - The intelligent driving chip business includes three core series: A1000, C1200, and A2000, with A1000 already implemented in several models from Geely and Dongfeng [1] - The C1200 chip has completed functions for highway and urban memory navigation, set to be mass-produced with multiple leading new energy vehicle manufacturers [1] - The A2000 chip supports Transformer/VLA large model algorithms, focusing on urban NOA scenarios, with expected mass production by the end of the year [1] Strategic Partnerships and Market Expansion - The company continues to deepen collaborations with leading automakers such as Geely, BYD, Dongfeng, and FAW, and has secured new overseas model contracts in 1H25, with plans to start overseas sales in the second half of the year [2] - In the commercial vehicle sector, the company has partnered with most major clients, covering light trucks, heavy trucks, and specific route unmanned vehicles, which is expected to further enhance market share [2] - The company is also expanding its chip applications in the L4 field and has delivered L4-level autonomous driving solutions in ports and parks [2] Future Outlook and Valuation - The company is expected to accelerate shipment volumes in 2025 due to strengthened partnerships with major manufacturers [2] - Revenue projections for 2025, 2026, and 2027 are 840 million yuan, 1.42 billion yuan, and 2.04 billion yuan, representing year-on-year growth of 76.8%, 69.3%, and 44.0% respectively [2] - The company maintains a target price of 24.46 HKD based on a 2025E 17.0X PS valuation, with a "buy" rating [3]

Core Viewpoint - The company reported a significant increase in revenue for the first half of 2025, but also experienced a larger net loss compared to the previous year, primarily due to increased R&D investments and cloud computing costs related to model training [1][2]. Group 1: Financial Performance - Revenue for the first half of 2025 reached 1.57 billion yuan, representing a year-on-year increase of 67.6% [1] - Adjusted net loss amounted to 1.33 billion yuan, with the loss margin expanding by 65.7% year-on-year [1] - Gross margin stood at 65.4%, a decrease of 13.7 percentage points compared to the previous year [1] Group 2: Product and Market Performance - The penetration rate of domestic self-owned brand advanced driver-assistance systems (ADAS) increased from 51% at the end of 2024 to 59% in the first half of 2025 [1] - The proportion of new smart vehicles equipped with mid-to-high level ADAS rose from 20% at the end of 2024 to 32% in the first half of 2025 [1] - The company achieved a doubling of shipment volume, driven by the growth in penetration rates and sales of self-owned brand vehicles [1] Group 3: Business Segments - Revenue from automotive products and solutions reached 778 million yuan, while software and licensing services generated 738 million yuan, reflecting year-on-year increases of 250% and 6.9%, respectively [2] - The delivery volume of automotive products doubled to approximately 1.98 million units, with mid-to-high level product shipments contributing about 50% of the total volume and over 80% of the revenue [2] - The average selling price (ASP) of automotive products and solutions was 1.7 times that of the same period last year [2] Group 4: Future Outlook - The company is set to begin mass production of its HSD system in the second half of 2025, with new collaborations with Japanese automakers enhancing its global influence [2] - The company maintained its leading position in the domestic market for ADAS front-view integration and driving computing solutions, with market shares of 45.8% and 32.4%, respectively, reflecting increases of 12 percentage points and 3.8 percentage points year-on-year [2] - Future revenue projections for 2025, 2026, and 2027 are estimated at 3.516 billion, 5.714 billion, and 8.552 billion yuan, respectively, with adjusted net profits expected to improve significantly by 2027 [2]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 24.46 [5][4]. Core Insights - The company, Hezhima Intelligent, is a pioneer in smart driving solutions in China, focusing on mid/high computing power chips for passenger vehicles and gradually expanding into low-power product lines and multi-domain applications [1]. - In the first half of 2025, the company achieved revenue of HKD 253 million, representing a year-on-year growth of 40.4%, with the driver assistance solutions segment contributing HKD 234 million, up 41.6% year-on-year [1]. - The gross margin decreased by 25.2 percentage points to 24.8% due to increased hardware component and labor costs associated with the expansion of driver assistance products [1]. - The company is expected to enhance its AI low-power chip product line through acquisitions and improve software algorithms, which may lead to more breakthroughs in passenger vehicles, L4, and robotics clients [1]. Revenue and Profitability Forecast - The company is projected to achieve revenues of HKD 840 million, HKD 1.42 billion, and HKD 2.04 billion for the years 2025, 2026, and 2027, respectively, reflecting year-on-year growth rates of 76.8%, 69.3%, and 44.0% [4][8]. - The report anticipates a recovery in gross margin in the second half of the year as software revenue is recognized and scaled deliveries increase [4]. Product Development and Market Position - The company has established partnerships with leading automakers such as Geely, BYD, Dongfeng, and FAW, and is set to expand its overseas sales in the second half of 2025 [2]. - The A2000 chip is expected to enter mass production by the end of the year, supporting advanced algorithms for urban navigation [2]. - The company is also collaborating with various robotics firms, leveraging its C1200 and A2000 chips for motion control and intelligent perception [3]. Valuation Metrics - The target price of HKD 24.46 is based on a 17.0X price-to-sales ratio for 2025, aligned with comparable companies' averages [4][11]. - The company's market capitalization is approximately HKD 11.335 billion, with a closing price of HKD 17.87 as of September 3, 2025 [6].

Core Viewpoint - The company reported a significant revenue growth of 67.6% year-on-year in the first half of 2025, reaching 1.57 billion yuan, despite an increased adjusted net loss of 1.33 billion yuan, which expanded by 65.7% year-on-year, indicating ongoing investment in R&D and cloud computing for future technology upgrades [1][4]. Group 1: Financial Performance - In H1 2025, the company's revenue was 1.57 billion yuan, reflecting a year-on-year increase of 67.6% [1]. - The adjusted net loss for H1 2025 was 1.33 billion yuan, with a loss margin that widened by 65.7% compared to the previous year [1]. - The gross margin stood at 65.4%, down 13.7 percentage points year-on-year [1]. Group 2: Product and Market Development - The penetration rate of domestic self-owned brand advanced driver-assistance systems (ADAS) increased from 51% at the end of 2024 to 59% in H1 2025 [1]. - The proportion of new smart vehicles equipped with high-level ADAS features rose from 20% at the end of 2024 to 32% in H1 2025 [1]. - The company achieved a doubling of shipment volume in H1 2025, driven by the growth in penetration rates and sales of self-owned brand vehicles [1]. Group 3: Business Segmentation - In H1 2025, the revenue from automotive products and solutions reached 778 million yuan, while software and licensing services generated 738 million yuan, representing year-on-year increases of 250% and 6.9%, respectively [2]. - The delivery volume for automotive products and solutions doubled to approximately 1.98 million units, with mid-to-high-end products accounting for 980,000 units, contributing to about 50% of the total shipment volume and over 80% of revenue [2]. - The average selling price (ASP) of automotive products and solutions was 1.7 times that of the same period last year [2]. Group 4: Future Outlook - The company maintained its leading position in the domestic market for ADAS front-view integration and computing solutions, with market shares of 45.8% and 32.4%, respectively, reflecting increases of 12 percentage points and 3.8 percentage points year-on-year [3]. - The HSD system is expected to enter mass production in H2 2025, with multiple OEMs already securing contracts for over 10 models [3]. - The company has begun to see results from its international expansion, securing contracts for 30 models from nine joint venture automakers, including major players like Volkswagen and Japan's largest automotive group [3]. Group 5: Investment Recommendations - The company is positioned as a leading supplier of intelligent driving chips and solutions in the domestic ADAS/AD market, with strong revenue growth expected to continue [4]. - Projections for revenue from 2025 to 2027 are 19.47 billion, 22.4 billion, and 25.76 billion yuan, with net profits of 790 million, 1.01 billion, and 1.3 billion yuan, respectively [4]. - The current price-to-sales ratios are projected to be 45.5, 35.5, and 27.4 times for the years 2025 to 2027, maintaining an "overweight" investment rating [4].

Core Viewpoint - The company is positioned as a leading player in the domestic intelligent driving solution market, with significant revenue growth and a strong market presence, driven by product optimization and strategic partnerships [4][6][8]. Financial Performance - The company reported a revenue of 1.552 billion yuan in 2023, with a projected increase to 8.047 billion yuan by 2027, reflecting a compound annual growth rate (CAGR) of approximately 50% [2]. - The net profit attributable to the parent company is expected to improve from a loss of 6.739 billion yuan in 2023 to a profit of 403.52 million yuan by 2027 [2]. - The earnings per share (EPS) is projected to transition from a loss of 0.49 yuan in 2023 to a profit of 0.03 yuan in 2027 [2]. Revenue Growth - In the first half of 2025, the company achieved a revenue of 1.57 billion yuan, a year-on-year increase of 68%, significantly exceeding market expectations [4]. - The revenue from product solutions grew by 250%, while licensing and service revenue increased by 7% [4]. Product Development - The company saw a doubling of overall chip shipments to 1.98 million units in the first half of 2025, with mid-to-high-end chip shipments increasing sixfold to 980,000 units [5]. - The average price per chip rose by 106% to 393 yuan, attributed to an improved product mix favoring higher-end products [5]. - The J6B chip has secured international model designations from overseas automakers, with expected lifetime shipments exceeding 7.5 million units [5]. Market Position - The company has established partnerships with 27 OEMs (42 brands), with over 310 designated models, leading to a market share of 45.8% in the Chinese OEM ADAS/AD market [6]. - The company maintains a strong competitive position, with its market share in intelligent driving solutions continuing to rise [6]. Research and Development - R&D expenses reached 2.3 billion yuan in the first half of 2025, a 62% increase, aimed at enhancing core competitiveness and establishing technological barriers [7]. - Despite significant R&D investments, the adjusted net profit was a loss of 1.33 billion yuan, indicating a focus on long-term growth potential [7]. Investment Outlook - The company maintains revenue forecasts of 3.66 billion yuan for 2025, 5.37 billion yuan for 2026, and 8.05 billion yuan for 2027, with corresponding price-to-sales (P/S) ratios of 36.4, 24.8, and 16.6 respectively [8].

Core Viewpoint - The article highlights the challenges faced by Hezhima Intelligent, the leading Chinese smart driving chip company, due to increasing competition from self-research initiatives by major automotive manufacturers and a lack of significant high-quality clients compared to competitors like Momenta and Horizon Robotics [1][4][10]. Company Performance - Hezhima reported a net loss of 760 million RMB for the first half of 2025, a 169% increase year-on-year, despite a revenue of 250 million RMB, which represents a 40.4% increase compared to the previous year [4][5]. - The company had previously warned of expected losses not exceeding 800 million RMB for the same period, attributing the losses to employee stock-based compensation, R&D expenses, and reduced fair value gains on financial instruments [5][12]. Industry Context - The Chinese assisted driving industry continues to grow, with L2 and above assisted driving function installation rates in passenger vehicles increasing from 66.4% to 82.6% year-on-year, a rise of 16.2 percentage points [5]. - Major competitors like Momenta and Horizon Robotics are advancing their self-research chip capabilities, with Momenta's chip set to compete with high-performance chips from NVIDIA and Qualcomm [8][10]. Competitive Landscape - Hezhima's client base is relatively weak compared to competitors, with significant clients like BYD and Geely not fully leveraging Hezhima's chips in their popular models [11][15]. - The performance of Hezhima's A1000 chip, with a computing power of 58 TOPS, is significantly lower than competitors like Horizon's 128 TOPS and NVIDIA's 254 TOPS, making it less attractive to automakers [19][20]. Future Outlook - The trend of automotive manufacturers developing their own chips poses a significant threat to all chip suppliers, including Hezhima, as companies like Tesla, Huawei, and various domestic automakers are increasingly integrating their hardware and software solutions [22][23][24]. - Hezhima's revenue for 2024 is projected to be under 500 million RMB, raising concerns about its ability to survive in a rapidly evolving market [25].

Group 1 - Horizon Robotics announced that its Journey series vehicle-mounted intelligent chips have exceeded 10 million units in cumulative production and shipment, becoming the first domestic intelligent driving computing solution company to cross this threshold [1] - The acceptance of domestic chips in the industry is continuously increasing, with the penetration rate of advanced driver assistance systems (ADAS) in the domestic passenger car market expected to rise rapidly by mid-2025 [1] - The penetration rate of mid-to-high-level ADAS functions is projected to increase from 20% at the end of 2024 to 32% by the end of June 2025, driving a shift in chip demand structure [1] Group 2 - The Journey 6 series chips, which support highway NOA and urban NOA, shipped approximately 980,000 units, representing a sixfold year-on-year increase and accounting for nearly 50% of total shipments in the first half of the year, contributing over 80% of related business revenue [1] - The increase in shipment volume has also led to a 70% year-on-year rise in average value per vehicle, driven by the upgrade of intelligent driving assistance functions from basic L2 to higher-level applications like urban NOA [1] - The company anticipates that the price range for models equipped with urban assistance driving solutions will drop to around 150,000 yuan, further promoting the popularization of intelligent driving in the mass market [1] Group 3 - Horizon Robotics is continuously advancing the research and development of the full-scene urban assistance driving system (HSD), which is based on the Journey 6P and employs an end-to-end architecture and reinforcement learning mechanism [2] - The HSD system has already been designated for over 10 vehicle models, with the first model, the Xingtu E05, expected to begin mass production by the end of the year [2] - The industry generally views achieving a million-level shipment as a significant milestone for the commercialization of domestic automotive-grade chips, although the intelligent driving chip industry faces rapid technological iteration and substantial ecological investment [2]

Core Insights - Horizon (9660.HK) has achieved a significant milestone by surpassing 10 million units of its Journey series automotive intelligent chips, becoming the first domestic company to reach this threshold in the smart driving computing solutions sector [1] - The acceptance of domestic chips in the industry is increasing, with the penetration rate of advanced driver assistance systems (ADAS) in the domestic passenger car market expected to rise rapidly in the first half of 2025 [1] - The CEO of Horizon, Yu Kai, highlighted that over 60% of passenger cars sold in China are now equipped with ADAS [1] Financial Performance - In the first half of 2025, Horizon reported a revenue of 1.567 billion yuan, marking a year-on-year increase of 67.6%, primarily driven by substantial growth in product and solution business revenue [3] - The revenue from this segment reached 778 million yuan, which is 3.5 times that of the same period last year, with a shipment volume of 1.98 million units, reflecting an approximate 100% year-on-year growth [3] - The advanced ADAS solutions are becoming the core driver of the company's performance, with the Journey 6 series chips supporting high-speed NOA and urban NOA contributing over 80% of related business revenue [3] Technological Advancements - Horizon is advancing its full-scene urban ADAS system, Horizon SuperDrive (HSD), based on the Journey 6P chip, utilizing an end-to-end architecture and reinforcement learning mechanisms [4] - The HSD system has already been designated for over 10 vehicle models, with the first model, the Xingtu E05, expected to enter mass production by the end of the year [4] Challenges and Market Outlook - Despite significant revenue growth, Horizon faces profit challenges, with an adjusted operating loss of 1.11 billion yuan in the first half of the year, a year-on-year increase of 34.8%, primarily due to high R&D investments [6] - R&D expenditures reached 2.3 billion yuan, a 62% increase year-on-year, focused on the HSD system and cloud service resources [6] - Horizon has secured nearly 400 model designations, with over 100 supporting high-speed NOA and above functionalities, and has entered the supply chains of two Japanese automakers, with an expected delivery of 7.5 million units [6] - The market for intelligent driving chips is anticipated to expand further as urban NOA functionalities penetrate vehicles priced around 150,000 yuan, although competition is expected to intensify [6]