Investment Highlights - The automotive sector has shown positive performance this week, with the SW passenger vehicle and SW auto parts sectors leading with gains of +3.3% each, followed by SW automotive (+2.7%) and SW commercial vehicles (+1.1%), while SW commercial passenger vehicles declined by -2.2% [4][12] - The top-performing stocks this week include Yatong Co., Hengshuai Co., Xusheng Group, Yinlun Co., and Shuanghuan Transmission [4][12] Research Outcomes - The team has released a strategy report for automotive parts for 2026 and a monthly report on buses [5][12] Industry Core Changes 1. Xiaopeng Motors collaborated with Peking University to publish a paper at the international AI conference AAAI 2026, addressing the core contradiction of high computational load and precise decision-making in autonomous driving, showcasing both technological breakthroughs and commercial feasibility [6][12] 2. Horizon Robotics launched the S100P mass production of the Digua robot and officially released the Vbot super robot dog [6][12] 3. The Zhiji brand is expected to achieve full-cost profitability for the first time by December 2025 [6][12] Current Automotive Sector Configuration - The automotive industry is entering a new crossroads phase, with the end of the electric vehicle (EV) dividend and the dawn of automotive intelligence, while robotics innovation is in the 0-1 stage. Three main investment opportunities are emerging during this transition [8][13] - **AI Smart Vehicle Main Line**: Focus on Robotaxi/van, with downstream application core targets including: - **Robotaxi Perspective**: Integrated models like Tesla, Xiaopeng Motors, and Qianli Technology; technology providers with operational sharing models like Horizon Robotics and Baidu; transformation of ride-hailing/taxi services with companies like Cao Cao Mobility, Didi, and others [8][13] - **Robovan Perspective**: Key focus on Desay SV and others [8][13] - **C-end Vehicle Sales Perspective**: Whole vehicles from Xiaopeng Motors, Li Auto, Huawei, Xiaomi, etc. [8][13] - **Upstream Supply Chain Core Targets**: B-end vehicle manufacturing by companies like BAIC Blue Valley, GAC Group, and SAIC Group; core suppliers in testing, chips, domain controllers, sensors, and more [8][13] - **AI Robotics Main Line**: Preferred components from Top Group, Junsheng Electronics, Xinquan Technology, and others [8][13] - **Dividend & Good Pattern Main Line**: Focus on buses (Yutong Bus), heavy trucks (China National Heavy Duty Truck Group, Weichai Power), and two-wheelers (Chunfeng Power, Longxin General) [9][13]

Investment Rating - The report maintains a positive outlook on the automotive sector, particularly highlighting the potential of AI-driven vehicles and related technologies [1][3]. Core Insights - The automotive industry is at a crossroads, transitioning from electric vehicle benefits to a focus on intelligent vehicles and robotics innovation [3]. - Key developments include the collaboration between Xiaopeng Motors and Peking University on the FastDrive VLA model, which addresses significant challenges in autonomous driving [2][3]. - The report anticipates a significant increase in the penetration of L3 and L2+ intelligent driving technologies by 2025, with expected market growth driven by major players like Tesla and Huawei [48][49]. Summary by Sections Market Performance - This week, the automotive sector outperformed the market, with passenger vehicles and auto parts showing the best performance, increasing by 3.3% [2][3]. - The report notes that the automotive sector ranked 11th in A-shares and 18th in Hong Kong stocks this week [7][9]. Investment Opportunities - The report identifies three main investment themes: AI smart vehicles, robotics, and traditional vehicle segments benefiting from favorable market conditions [3]. - Key investment targets include: - **AI Smart Vehicles**: Focus on Robotaxi and Robovan models, with companies like Tesla, Xiaopeng, and Horizon Robotics highlighted [3]. - **Robotics**: Emphasis on component suppliers and companies involved in the development of humanoid robots and related technologies [54][60]. - **Traditional Vehicles**: Companies like Yutong Bus and China National Heavy Duty Truck are expected to benefit from ongoing demand and favorable policies [50][53]. Sales Forecasts - The report projects that domestic retail sales of passenger vehicles will reach 23.62 million units in 2025, representing a year-on-year growth of 3.8% [45]. - The penetration rate of new energy vehicles is expected to increase to 55.4% by 2025, with significant growth in both domestic and export markets [49][53]. Key Companies and Developments - Notable companies mentioned include Xiaopeng Motors, Ideal Auto, and Horizon Robotics, with significant advancements in technology and profitability reported [3][59]. - The report highlights the importance of strategic partnerships and technological advancements in driving future growth within the sector [60].

Core Viewpoint - The launch of the iRC100 marks the introduction of China's first mass-produced robot "brain," enhancing the embodied intelligence ecosystem in China [1][2][3]. Group 1: Product Overview - The iRC100 is based on the first TOPS-level single SoC integrated robot computing platform, the Digua Robot S100P, and features a brain-like architecture designed for industrial applications [3][4]. - The product was officially launched on September 14, and initial deliveries have been made to major domestic general and specialized robot companies [3][4]. Group 2: Market Position and Strategy - The embodied intelligence industry is on the brink of scaling, with robots needing to transition from testing to production environments, which requires higher system integration and cost control [4][6]. - The iRC100 offers a full-stack solution from hardware to software deployment, catering to the highly customized needs of the embodied intelligence sector [4][6]. Group 3: Technological Advancements - The collaboration between Zhixing Technology and Digua Robot has successfully deployed the VLA (Vision-Language-Action) model ACT Policy algorithm on the S100P platform, demonstrating high success rates in object manipulation tasks [6]. - The iRC100 is designed to provide high real-time performance, reliability, and low ownership costs, aiming to create an open and innovative ecosystem for the industry [6].