Core Viewpoint - DeepWay, a leading technology company in the field of new energy heavy trucks and intelligent road freight solutions, has submitted its IPO application to the Hong Kong Stock Exchange, marking it as the first new force in heavy trucks to do so in China [1][4]. Company Overview - DeepWay was established in 2020 and focuses on providing new energy heavy trucks and intelligent road freight solutions tailored to various highway freight scenarios [4]. - The company adopts a "forward definition" approach, breaking away from traditional fuel vehicle frameworks to redefine the design and structure of electric heavy trucks [4][5]. Technological Innovations - DeepWay has introduced several innovative solutions, including an integrated battery chassis design and a streamlined, low-drag body, which significantly reduce energy consumption and enhance safety [4][5]. - The company aims to achieve self-research and development of its three-electric system by 2025, which is expected to lower manufacturing costs and improve gross margins [8][11]. Market Performance - DeepWay has shown impressive growth, with revenues of 426 million yuan in 2023, projected to reach 1.969 billion yuan in 2024, and 1.506 billion yuan in the first half of 2025 [10]. - The company has delivered approximately 6,400 vehicles since its inception, with a significant increase in delivery volume from 509 units in 2023 to 2,873 units in the first half of 2025 [10]. Strategic Expansion - DeepWay is actively expanding its market presence in the Asia-Pacific region, Australia, New Zealand, and the Middle East, while also establishing sales channels in countries like Singapore, Thailand, and Australia [12]. - The company benefits from strong backing from major shareholders, including Baidu and Weiqiao, which enhances its competitive edge and operational capabilities [12]. Industry Trends - The new energy heavy truck market in China is experiencing rapid growth, with a total sales volume of 119,600 units from January to September 2023, reflecting a year-on-year increase of 198% [13]. - The penetration rate of new energy heavy trucks is expected to rise significantly, with projections indicating a market size of 255.8 billion yuan by 2030 and a compound annual growth rate of 33.3% [13].

Investment Rating - The report maintains an "Outperform" rating for the automotive industry as of May 11, 2025 [1] Core Views - April saw a record high in passenger car wholesale, with retail sales reaching 1.755 million units, a year-on-year increase of 14.5% [2][8] - The "2025 China Intelligent Automotive Technology Exhibition" was held on May 8, focusing on future research, strategic trends, and technological breakthroughs in the automotive industry [3][60] - The report suggests focusing on companies with technological innovation in smart driving algorithms, sensors, and intelligent cockpits, as well as traditional automakers actively entering the smart vehicle sector [3][63] Summary by Sections Passenger Vehicles - In April, passenger car retail sales were 1.755 million units, up 14.5% year-on-year but down 9.4% month-on-month; cumulative retail for the year reached 6.872 million units, a 7.9% increase [8][61] - Wholesale for April was 2.190 million units, a 10.7% year-on-year increase but down 9.2% month-on-month; cumulative wholesale for the year was 8.468 million units, up 11.1% [8][61] - Recommended stocks include BYD (002594), Geely (0175.HK), and Xpeng Motors (9868.HK) [61] New Energy Vehicles - April retail for new energy passenger vehicles was 905,000 units, a 33.9% year-on-year increase but down 8.7% month-on-month; cumulative retail for the year was 3.324 million units, up 35.7% [8][62] - April wholesale was 1.133 million units, a 40.2% year-on-year increase and a 0.3% month-on-month increase; cumulative wholesale for the year was 3.981 million units, up 42.1% [8][62] - Key stocks to watch include BYD (002594), Geely (0175.HK), and Huayu Automotive (600741) [62] Heavy Trucks - In April, heavy truck wholesale was approximately 90,000 units, down 19% month-on-month but up 9.4% year-on-year; cumulative sales for the year were about 355,000 units, flat year-on-year [10][64] - The report highlights opportunities in the heavy truck sector due to the inclusion of natural gas heavy trucks in the subsidy range, enhancing their economic advantages [10][65] - Recommended stocks include Weichai Power (2338.HK/000338) and China National Heavy Duty Truck Group (000951/3808.HK) [65] Smart Vehicles - The report emphasizes the importance of technological advancements in smart driving and suggests monitoring companies with significant innovations in this area [3][63] - Key companies mentioned include BYD (002594), Geely (0175.HK), and SAIC Motor (600104) for complete vehicles, and Desay SV (002920) and Huayang Group (002906) for components [3][63]

Core Viewpoint - DeepWay has established itself among the top ten in the new energy heavy truck industry in 2024, with a significant market penetration rate and sales growth [2][3]. Group 1: Market Performance - The new energy heavy truck market has seen a penetration rate exceeding 15% for eight consecutive months since August 2024, with March sales reaching 15,000 units, accounting for 20.93% of total heavy truck sales [2]. - DeepWay launched two new models, the Starry Sky II and Starry Path, and secured 2,273 orders during the product launch event [6]. Group 2: Company Strategy - DeepWay's CEO emphasizes three strategic directions: self-research and production of core components, internationalization, and investment in intelligent technology [3][26]. - The company has achieved significant cost reductions and improved adaptability to complex transport scenarios through the self-research of its three electric systems [5]. Group 3: Future Vision - The CEO views future new energy heavy trucks as industrial robots, highlighting the shift towards automation and the elimination of manual labor in logistics [7][10]. - DeepWay aims to transition from being merely a truck manufacturer to becoming a smart driving and industrial robotics company, with vehicle sales being a necessary step towards this goal [7][10]. Group 4: Industry Trends - The penetration rate of new energy in commercial vehicles is expected to increase, driven by the development of charging infrastructure [19][20]. - The CEO predicts that by 2030, 50% of trucks in China will be electric, as demand will drive supply in the market [21]. Group 5: Competitive Landscape - DeepWay acknowledges the competitive nature of the industry but believes that competition ultimately benefits consumers and drives innovation [25][26]. - The company is committed to maintaining its competitive edge through self-research, global expansion, and continuous improvement in intelligent technology [26].

Core Insights - DeepWay has successfully secured 1,403 pre-orders for its new models, indicating strong market interest and demand [1] Group 1: Company Overview - DeepWay, headquartered in Hefei, is a new player in the commercial truck sector, focusing on electric heavy-duty trucks [2] - The company launched two new models, the Starry Sky II and the Starry Path, both equipped with self-developed three-electric systems and L2-level combined auxiliary driving systems [2][3] Group 2: Product Features - The Starry Sky II supports higher charging demands, featuring a 505 kWh battery and a 900V high-voltage platform, reducing charging time from 20% to 80% to just 30 minutes [2] - The Starry Path is designed for short-axle and high-ground-clearance applications, suitable for bulk, port, and short-distance transportation [2] Group 3: Technology and Cost Structure - The three-electric system accounts for over 60% of the vehicle's cost, which is crucial for the company to maintain control over software and agile development [3] - The L2-level auxiliary driving system can reduce accident rates by 78% and driver fatigue by 30%-60%, leading to an annual profit increase of 19,000 yuan per vehicle [3] Group 4: Market Strategy - DeepWay aims for over 60% of its heavy truck sales to come from overseas markets by 2030, with 870 orders already secured from international markets [5] - The company is currently focusing on Southeast Asia, where it is the first to develop right-hand drive trucks [5] Group 5: Future Plans - The company plans to achieve global deliveries of 8,000 units this year, reflecting its ambitious growth targets [7] - In the European and North American markets, DeepWay intends to adopt a high-end strategy and collaborate with local partners for brand and technology localization [6]

Core Insights - DeepWay launched two new models, the Starry Sky II and Starry Path, at a spring product launch event in Hefei, China, highlighting their self-developed three-electric system and advancements in intelligence [2] - The commercial vehicle industry, particularly heavy trucks, is undergoing structural changes alongside overall market adjustments, with a strong emphasis on electrification [4][5] - The penetration rate of new energy heavy trucks has exceeded 20% in the first four months of the year, indicating a rapid shift towards electrification in the commercial vehicle sector [6] Industry Trends - The commercial vehicle market has seen a mild recovery, but overall scale remains below previous peaks due to changes in industrial structure and emerging industries [5] - The demand for road transportation is stable and expected to grow with the national economy, although the types and forms of transportation will adjust according to macroeconomic changes [5] - The rapid turnover rate of commercial vehicles, with an estimated 10%-12.5% of the existing fleet being updated annually, presents a significant opportunity for new energy vehicles [5] Competitive Landscape - The competition in the commercial vehicle sector is intensifying, with new entrants in the new energy heavy truck market and traditional manufacturers accelerating their strategies [8] - DeepWay views competition as a necessary phase for industry maturation and is committed to leveraging it for growth [8][9] Company Strategy - DeepWay's core competitive advantages include self-research and production of key components, an internationalization strategy aiming for over 60% of sales from overseas by 2030, and a focus on intelligent systems to enhance operational efficiency [9][10] - The company emphasizes the importance of artificial intelligence in logistics and transportation, aiming to improve operational efficiency and reduce costs through smart fleet management [11]

Core Viewpoint - DeepWay focuses on "electrification + intelligence" as its core strategy, launching two new models, the Starry Generation II and the Starry Path, to drive innovation in the electric heavy truck sector [2][3]. Product Development - Both new models are equipped with self-developed three-electric systems and standard L2 level combined auxiliary driving systems, catering to various transportation needs [3]. - The Starry Generation II features significant upgrades, including enhanced cooling capabilities and a 900V high-voltage platform, reducing charging time from 20% to 80% to just 30 minutes [3][4]. - The Starry Path is designed for short-distance transport, particularly in challenging environments, making it suitable for bulk, port, and construction transport scenarios [3][4]. Technological Innovation - The three-electric system accounts for over 60% of the total vehicle cost, impacting efficiency and weight reduction, and is crucial for the company's technological independence [4]. - DeepWay aims to be a technology-driven enterprise rather than a simple assembler, focusing on R&D to lower costs and enhance adaptability to diverse transport conditions [4]. Safety and Efficiency - The L2 level auxiliary driving system has reportedly reduced accident rates by 78% and driver fatigue by 30-60%, leading to an annual profit increase of 19,000 yuan per vehicle [4]. - The system has achieved over 1.6 million kilometers of accident-free driving, significantly improving safety compared to industry averages [4]. Smart Logistics Solutions - DeepWay is set to deliver an L4 level intelligent convoy transport system, addressing challenges in bulk transport scenarios [5]. - The company is developing an L4 level single-vehicle transport system, enhancing operational efficiency and reducing labor costs [5]. Financial Performance - DeepWay has secured 2,273 orders for its new energy heavy trucks, with 870 orders from its international business segment [6]. - The company has received strategic support from 10 banks, with a total credit line of 4.9 billion yuan, ensuring financial stability for innovation and market expansion [6].