Group 1: Certification and Standards - The company is the first in China to obtain the EU's next-generation NG-eCall certification, which enhances the traditional eCall system by upgrading from 2G/3G to 4G/5G networks, improving data transmission rates significantly [1] - The national standard AECS integrates China's Beidou satellite navigation system and differs from the EU's NG-eCall in terms of data transmission and voice channels [1] - The implementation of the national standard AECS is expected to significantly reduce rescue times and lower traffic accident mortality rates, similar to the impact of seat belts and airbags [2] Group 2: Market Penetration and Impact - Prior to the national standard AECS, domestic eCall systems were defined by individual car manufacturers, lacking a unified standard; post-implementation, the penetration rate is projected to reach 100% [2] - The company has established a competitive advantage in the eCall sector by being an early mover, participating in the development of industry standards, and achieving multiple certifications [3][4] Group 3: Digital Energy Management Solutions - The company's digital energy management solution utilizes integrated "end and cloud" technology to enhance battery management and support various energy trading scenarios [6] - This solution is already applied in key areas such as automotive power batteries and energy storage systems, and is expanding into emerging fields like electric shipping [6] Group 4: Future Development Strategies - The company is in a strategic growth phase, focusing on deepening its core business while exploring new growth areas [7] - It aims to leverage its established technology and product base to support domestic and international vehicle manufacturers, thereby shortening their certification cycles [7][8] - The company is also expanding its digital energy management solutions and 5G-V2X applications to enhance product value and explore new market opportunities [8]

Group 1: Market Demand and Regulatory Impact - The implementation of the national standard AECS on July 1, 2027, will create a stable demand of nearly 30 million units annually for eCall systems in China, significantly larger than the demand for ETC systems, which are subject to policy encouragement [2][5]. - The eCall system is a regulatory requirement, while ETC has a more phase-based market demand, peaking in 2019 and now primarily focused on replacement of existing systems [2][5]. Group 2: Company’s eCall Business Strategy - The company has prioritized forward-looking R&D, actively tracking industry technology trends and global market competition, which is reflected in its early involvement in the eCall sector since the EU's initial research phase in 2013 [3][4]. - The company has achieved significant milestones, including being one of the first to obtain EU eCall certification in 2019 and the new generation NG eCall certification in 2025, establishing a strong technical advantage [3][4]. Group 3: Technical Challenges and Competitive Advantages - The technical barriers for eCall products include rigorous testing for reliability and functionality, as they are critical for life safety [4]. - The company’s eCall products incorporate advanced technical specifications that exceed industry standards, ensuring reliability and stability under extreme conditions, which contributes to its unique competitive advantage [4]. Group 4: Industry Response and Future Preparedness - Car manufacturers are closely monitoring the implementation of AECS, and the company has prepared by establishing stable partnerships and ensuring product compatibility with various vehicle models [5]. - The company has enhanced its production capacity through flexible production lines and a robust external collaboration system, allowing for rapid adjustment to market demands [5]. Group 5: Market Competition and Pricing Strategy - The anticipated surge in market demand post-AECS implementation may lead to increased competition, potentially driving down eCall product prices; however, the company emphasizes the importance of maintaining quality standards for life safety [5]. - The company believes that responsible suppliers will prioritize product quality over cost-cutting measures, ensuring that safety remains a fundamental design principle [5]. Group 6: Digital Energy Management Solutions - The company has initiated a digital energy management solution that integrates "end and cloud" technologies, enabling effective management of battery lifecycle and supporting high-value energy trading scenarios [6]. - This solution is being applied across various sectors, including automotive power batteries and energy storage systems, enhancing the company's competitiveness in the energy sector [6]. Group 7: R&D Cost Reduction Strategies - The company employs a "platform and modular" approach in its R&D system, allowing for flexible product configurations based on customer needs and significantly reducing development costs [6]. - This strategy not only accelerates product development cycles but also enhances the company's ability to respond to market changes and customer demands effectively [6].

Company Overview - The company focuses on ICT core technologies, initially specializing in Bluetooth, WiFi, and GPS for automotive communication modules, establishing a strong position in a niche market despite limited market size [2] - In 2012, the company entered the automotive communication sector, launching the first generation of connected vehicle terminal products, TBOX 1.0, and became a primary supplier for SAIC Group [2][3] - The company has developed a diverse business matrix centered around TBOX, eCall systems, digital energy management solutions, and IoT smart modules [4] Product Development and Market Position - The company has achieved significant milestones in eCall technology, obtaining the first domestic EU eCall certification in 2019 and the next-generation NG eCall certification in January 2025, making it one of the first globally to achieve these certifications [3] - The TBOX market is expected to grow due to increasing consumer demand for smart driving and connectivity features, with the introduction of 5G-V2X technology enhancing the value per vehicle [5] - The company has established long-term partnerships with leading domestic and international automotive manufacturers, including SAIC, BYD, and Toyota, and is expanding its global footprint [4][5] Market Penetration and Future Growth - The penetration rate of TBOX products is anticipated to rise as automotive manufacturers increase investments in smart connectivity [5] - The eCall product's technical barriers include reliability and compliance with stringent safety standards, which the company has successfully navigated to gain a competitive edge [6] - The implementation of national standards (AECS) is expected to drive eCall system adoption to 100% in the domestic market [6] International Strategy and Revenue - The company is transitioning from "on-vehicle export" to "export on-vehicle" to enhance its international strategy, aiming to increase overseas revenue [7] - Current overseas revenue is low due to eCall products being classified as domestic income when installed in vehicles exported by domestic manufacturers [7] - The company has received the German VDA6.3 certification, enhancing its capabilities in quality management and compliance, which supports future international collaborations [7]

Group 1: Company Development and Market Position - The company started with ICT core technology, focusing on Bluetooth, WiFi, and GPS modules, establishing a strong position in the wireless communication sector despite limited market size initially [2] - In 2012, the company entered the vehicle communication field, launching the first generation of vehicle networking intelligent terminal product TBOX1.0, becoming a primary supplier for SAIC Group [2] - By 2014, the company achieved a breakthrough with the mass production of SAIC's first intelligent connected vehicle, breaking the monopoly of foreign manufacturers in the vehicle intelligent terminal market [2][3] - The company has established long-term partnerships with major domestic and international automotive manufacturers, including SAIC, BYD, and Volvo, creating a stable cooperation network [3] Group 2: eCall Emergency Call System - The eCall system consists of a vehicle-mounted eCall terminal, mobile communication network, and PSAP call center, enhancing the timeliness of traffic accident rescue and reducing casualty rates [4] - The system can automatically trigger emergency calls upon detecting a collision, ensuring functionality even after severe accidents [4][5] - The company recognized the importance of eCall technology early on, tracking legislative developments since the EU's initial research in 2012, and obtained the first domestic EU eCall certification in 2019 [5] - The implementation of the national standard AECS on July 1, 2027, is expected to create a market increase worth billions, as existing products will need to be replaced with compliant ones [6][8] Group 3: Production Capacity and Strategy - The company employs a flexible production line strategy, focusing on core component production and ensuring stable product performance [7] - A strict external cooperation mechanism is in place to manage non-core component processing, ensuring compliance with automotive-grade standards [7] - The company is expanding its production capacity and upgrading technology to meet the anticipated surge in demand following the AECS implementation [8] Group 4: Competitive Advantage - The company emphasizes the need for strong capabilities in R&D, production management, quality control, and supply chain management to stand out in a competitive market [9] - Future strategies include continuous technological innovation and product optimization to enhance competitiveness and solidify market position [9]

Group 1: Company Achievements and Certifications - The company became the first in the world to pass the national standard AECS certification test for in-vehicle emergency call systems on September 30, 2025, at the China Automotive Research Center [2][4] - The national standard AECS will be mandatory from July 1, 2027, requiring all cars sold in China to comply, creating a stable demand of nearly 30 million units annually [4][6] - The company has accumulated extensive experience in eCall certification and project management since 2013, participating in the early stages of EU eCall regulation development [5][6] Group 2: Technical and Market Insights - eCall systems are critical for road rescue, significantly improving the timeliness of accident response and reducing casualty rates, with higher technical requirements compared to ETC systems [4][5] - eCall is a regulatory requirement with a stable market demand, while ETC is a policy-encouraged product with more variable demand [4][5] - The company’s eCall products have a competitive edge due to their early market entry and comprehensive certification across various regions, including the EU and the Middle East [6][8] Group 3: Production and Capacity Planning - The company has established a flexible production line capable of meeting automotive-grade product requirements, ensuring efficient R&D and production processes [6][7] - Collaboration with external manufacturers for non-core components allows the company to scale production according to market demands while maintaining quality control [7][8] Group 4: Research and Development Strategy - The company emphasizes forward-looking R&D, with a steady increase in R&D expenses, focusing on new technologies and product upgrades based on industry trends and customer needs [9][10] - A platform-based and modular design approach enables rapid product development and customization to meet diverse customer requirements [9][10] Group 5: Future Strategic Planning - The company plans to leverage its digital energy management solutions to penetrate the energy market, enhancing competitiveness in battery and energy device sectors [10][11] - Future strategies include scaling the application of 5G-V2X technology, entering the unmanned logistics vehicle sector, and supporting domestic and international automotive manufacturers in meeting safety standards [10][11]

Investment Rating - The report assigns a "Buy" rating to the company, with a market price of RMB 118.00 and a sector rating of outperforming the market [1]. Core Insights - The company is positioned to benefit from two major growth drivers: the mandatory installation of eCall terminals by July 2027, expected to create a market worth approximately RMB 16 billion, and the potential expansion into battery lifecycle management in collaboration with leading battery manufacturers [3][8]. - Revenue is projected to grow approximately sevenfold from 2024 to 2027, with net profit expected to increase by over five times during the same period [3]. Financial Summary - The company is forecasted to achieve net profits of RMB 1.99 billion, RMB 5.39 billion, and RMB 10.86 billion for the years 2025, 2026, and 2027 respectively, with corresponding earnings per share of RMB 1.90, RMB 5.15, and RMB 10.39 [5]. - The estimated price-to-earnings ratios for these years are 62.1, 22.9, and 11.4 respectively [5]. Business Overview - The company is a leading domestic supplier of vehicle communication terminals, with a strong market position in eCall and TBOX products [8][15]. - The company has a robust client base, including major domestic automotive brands such as SAIC Motor, Chery, and BYD, and has established a significant presence in the international market [8][26]. Market Opportunities - The implementation of the eCall national standard in China is expected to replicate the surge seen during the ETC installation wave, providing a high degree of revenue certainty [44]. - The eCall system is a critical safety feature that will be mandatory in all new vehicles starting July 2027, which is anticipated to significantly boost the company's sales [44][60]. Growth Potential - The company is also exploring opportunities in energy management solutions, which are expected to become a second growth curve, particularly in the context of battery lifecycle management [8][20]. - The transition to a service-oriented model in the battery industry, driven by leading manufacturers, presents substantial growth potential for the company [20][21].

Group 1: eCall Business Overview - The company has been early in the eCall product field, accumulating rich experience in certification and project management since 2013 [2] - In 2019, the company obtained the first EU eCall certification in China and was among the first globally to receive the UN-R144 standard certification [2] - As of January 6, 2025, the company received the next-generation NG eCall certification, becoming one of the first globally certified for this standard [2][5] - The company has expanded its certification scope to include countries like the UK, UAE, and Saudi Arabia, making it one of the few domestic companies with comprehensive certifications [2] Group 2: Involvement in National Standards - The company is one of the drafting units for the national standard AECS and has participated in the preparation of standard texts and technical specifications [3] - Recent tests conducted by the China Automotive Technology Research Center on the company's products have been successful, laying a solid foundation for the future application of the AECS system in vehicles [3] Group 3: R&D and Innovation - The company emphasizes forward-looking R&D, closely following industry trends and customer needs, leading to a steady increase in R&D expenses [3] - The R&D system is built on a "platform and modular" concept, allowing for rapid market introduction of new features and products tailored to customer demands [3] Group 4: Market Response and Competitive Advantage - The national standard AECS has been released, with mandatory implementation set for July 1, 2027, although certification and implementation will take time [4] - The company holds a first-mover advantage in the eCall sector, having passed the EU e-Call standard certification in March 2019 and continuously updating its products and technologies [5] Group 5: Production Capacity and Future Planning - The company has a flexible production line and an intelligent manufacturing system to meet the production needs of automotive-grade products [6] - The company collaborates with external manufacturers for non-core components, ensuring quality and compliance with production standards [6] Group 6: Digital Energy Management Solutions - The company's digital energy management solutions have been in development for several years and entered a new phase in the first half of this year [7] - These solutions support battery lifecycle management and digital operations for battery rental and charging stations, positioning the company for growth in high-value energy trading areas [7]

Group 1 - The core viewpoint of the company emphasizes the importance of maintaining product quality and life safety standards amidst intense competition in the industry [2] - The company acknowledges that while competition brings pressure, it also indicates significant market potential and development opportunities within the industry [2] - The company has successfully implemented its digital energy management solutions at scale, demonstrating commercial viability and penetrating various sectors such as logistics, engineering machinery, energy storage, and electric shipping [2] Group 2 - The energy sector presents vast market opportunities, driven by the rapid development of new energy vehicles and the increasing demand for efficient energy replenishment technologies like battery swapping and ultra-fast charging [3] - The industry consensus suggests that battery swapping stations will require backup batteries equivalent to 1.2 to 1.5 times the number of vehicles [3] - The demand for digital management in energy storage, ultra-fast charging, and related services is expected to exceed the number of vehicles, leading to increased hardware and platform requirements for the company [3]

Group 1 - The company, Huian Microelectronics, is one of the first globally to obtain the EU NG-eCall certification, which enhances traditional eCall with improved technical standards, data transmission capabilities, and network compatibility, upgrading from 2G/3G to 4G/5G and IMS technology [3] - The national standard AECS, while also compatible with 4G/5G, integrates the Beidou satellite navigation system, leading to differences in data transmission and voice channels [3] - The AECS standard is expected to create a market increment worth billions, although competition may lead to a decrease in terminal prices, there is a price floor due to safety concerns [3] Group 2 - The company's digital energy management solutions have been successfully implemented and have proven commercially viable, penetrating the supply chains of leading energy companies and expanding into multiple scenarios [3] - The energy sector presents significant market opportunities, driven by the demand for efficient charging in the electric vehicle market, which will further expand related markets [3] - The company acknowledges the competitive nature of the automotive industry and emphasizes the importance of maintaining product quality and safety standards while pursuing technological leadership and lean management [3] Group 3 - The company's product range includes both passenger and commercial vehicles, with a larger market size and higher technical barriers in the passenger vehicle sector, making it easier for the company to enter the commercial vehicle market [3] - The company is committed to technological innovation and has a stable and high-quality customer base, aiming for high-quality growth and continuous investment in research and development [3]

Group 1: NG-eCall Certification and AECS Standards - The company is among the first globally to obtain the EU NG-eCall certification, which upgrades traditional eCall standards to enhance data transmission capabilities and network compatibility, transitioning from 2G/3G to 4G/5G technology [2][3] - The national standard AECS also supports 4G/5G but integrates China's Beidou satellite navigation system, differing in data transmission and voice channel specifications [2][3] Group 2: Market Impact and Product Pricing - The implementation of AECS standards is expected to significantly reduce rescue times and lower traffic accident mortality rates, potentially creating a market increment worth billions [3][4] - While market competition may drive down AECS terminal prices, the company believes that safety-related products will maintain a price floor due to their critical nature [3][4] Group 3: Digital Energy Management Solutions - The company's digital energy management solutions have achieved large-scale implementation, validating their commercial viability and penetrating key energy enterprise supply chains [4][5] - The energy sector presents vast market opportunities, with the rapid growth of electric vehicles driving demand for efficient energy replenishment technologies [4][5] Group 4: Industry Competition and Strategic Response - The current competitive landscape in the automotive industry is intense, with price reductions impacting the supply chain [5][6] - The company emphasizes the importance of maintaining product quality and safety standards amidst competition, advocating for industry-wide adherence to these principles [5][6] Group 5: Future Development Outlook - The company is committed to technological innovation and product iteration, aiming to strengthen its core competencies across various operational aspects [6][7] - Future strategies include increasing R&D investments to prepare for the next growth cycle while maintaining a strong customer base [6][7]