Core Insights - The automotive industry is shifting its focus from electrification to intelligence, with chips, radars, and systems becoming critical for success [3] - Horizon Robotics aims to empower smart vehicles and robots, emphasizing safety through a comprehensive safety development system certified by international standards [3][5] - The company follows a progressive technical path similar to Tesla, aiming to achieve L4 and L5 capabilities while focusing on an "end-to-end" architecture for human-like driving experiences [5][9] Group 1: Strategic Positioning - Horizon Robotics is one of the few domestic companies achieving large-scale production in the intelligent driving sector, positioning itself as an industry pioneer [3] - The company has developed a full-domain safety development system that integrates hardware and software, making it one of the most complete safety systems in the industry [3] - Horizon emphasizes the importance of product strength over marketing gimmicks, aiming to make intelligent driving a standard feature in vehicles [7] Group 2: Technical Path and Market Outlook - The company predicts that true L3 capabilities will be based on L4 capabilities, with expectations of achieving near "100,000 kilometers without takeover" by 2028, contingent on extensive real-world data and insurance models [5] - Horizon has empowered over 25 vehicle models for international markets, collaborating with various Tier-1 suppliers and foreign automakers [7] - The intelligent driving market is seen as a certainty, with Horizon's shipment of millions of chips reflecting genuine market demand [9] Group 3: Future Vision and Industry Dynamics - Horizon Robotics focuses on creating real value for users, rejecting short-term trends in favor of long-term strategies [12] - The company believes the intelligent driving industry is nearing a consolidation phase, with only two to three leading companies expected to emerge in the next three to five years [9] - The ultimate goal is to shift competition from internal struggles to collaborative value creation for users and industry expansion [12]

Core Insights - The penetration rate of smart vehicles in China reached 57.1% in 2023, expected to rise to 99.7% by 2030, with a market size exceeding one trillion yuan [1][2] - L2-level intelligent driving solutions have become mainstream, with a year-on-year growth of 37% in 2023, while the penetration of L3 and above high-level intelligent driving is anticipated to increase significantly [1][2] - The domestic chip industry is a crucial support for the "intelligent driving equality" trend, with advancements in technology and cost advantages driving growth [3] Industry Overview - The global and Chinese ADAS SoC markets reached 27.5 billion yuan and 14.1 billion yuan respectively in 2023 [3] - Domestic chips are enhancing computing power, with Horizon's Journey 6 chip achieving 560 TOPS, supporting full-scene intelligent driving [3] - The trend of domestic substitution in the ADAS industry chain is evident, with local suppliers gaining market share [3] Investment Recommendations - The value and penetration rate in the intelligent driving chip segment are expected to benefit significantly, with a focus on companies like Horizon Robotics and Black Sesame Intelligence [4] - There is still room for domestic substitution in the Tier 1 segment, with potential for deepening customer relationships by extending to core products [4] - The high-level intelligent driving execution layer requires precise execution from controlled chassis, presenting opportunities for related component suppliers to evolve into system integrators [5] Regulatory and Support Framework - The implementation of high-level intelligent driving requires supportive regulations and testing systems, marking a new phase for automotive technology services [6] - Key companies to watch in this area include China Automotive Research and China Automotive Corporation [7]

Core Insights - The article discusses the collaboration between Qianli Zhijia and Aixin Yuanzhi in the autonomous driving chip sector, highlighting the importance of integrating hardware and software for advanced driving algorithms [7][9] - It emphasizes the shift from L2+ to L3 and Robotaxi as the main battleground for autonomous driving companies, with L3 and Robotaxi expected to unlock significant commercial value [8] - The need for higher computing power in the next generation of autonomous driving chips is noted, with expectations of reaching several thousand TOPS, which will increase costs and necessitate cost-reduction strategies [8] Group 1 - Qianli Zhijia is merging its algorithm capabilities with Aixin Yuanzhi's chip technology to enhance its autonomous driving solutions [7] - The collaboration is seen as crucial for Qianli Zhijia to achieve its ambitious technical goals, which include L2+, L3, and Robotaxi [7] - The article mentions that major players in the industry, including Tesla and domestic new forces, are preparing for a significant hardware and software iteration [7][8] Group 2 - L2+ is described as a preliminary stage, while L3 and Robotaxi represent the future of autonomous driving, with the potential for companies to achieve valuations in the billions [8] - The article suggests that the next generation of chips will require tighter collaboration between algorithms and chip manufacturers, moving away from reliance on generic chips [8][9] - Aixin Yuanzhi has established a foothold in the mid-to-low tier autonomous driving market and stands to gain significantly from this partnership with Qianli Zhijia [9]

Core Insights - The Chinese automotive industry is focusing on breakthroughs in "AI + automotive" technology to build core competitiveness [1] - The industry is transitioning from the "perception" era, reliant on hardware sensors, to the "cognition" era, centered on AI algorithms and data [1] - Future vehicles are expected to evolve into smarter mobility tools capable of intelligent assisted driving, progressing towards autonomous driving [1] Industry Trends - The automotive industry is entering the intelligent phase, with significant growth opportunities for suppliers of intelligent components, chip manufacturers, and full-stack autonomous driving solution providers [1] - Key product areas include automotive sensors, intelligent chassis, AI chips, and autonomous driving technologies [1] Regulatory Developments - A new regulatory phase for intelligent driving is emerging, with public concern focused on legal issues surrounding traffic accident responsibility [2] - 35.84% of respondents expect a comprehensive regulatory framework to clarify accident responsibility boundaries [2] - The establishment of a data security protection system is seen as a safety barrier for the development of autonomous driving technology [2] Challenges in Autonomous Driving - The commercialization of autonomous driving faces three core challenges: handling extreme and complex "edge cases," the cost and profitability of large-scale commercialization, and legislative and societal acceptance issues [2] - Addressing these challenges requires breakthroughs in perception-decision AI technology, exploration of sustainable business models, and positive interaction between regulations and social consensus [2]

Group 1: AI Infrastructure and Cloud Computing - The demand for computing infrastructure is expected to continue expanding due to the explosion of AI model requirements and the intelligent transformation across various industries [2] - AI infrastructure serves as a hub connecting computing hardware and AI applications, driven by hardware upgrades and technological breakthroughs [2] - The value of cloud computing is anticipated to be reassessed in the context of AI penetration, leading to new growth opportunities [2] Group 2: Solid-State Battery Investment - Global solid-state battery shipments are projected to reach 614 GWh by 2030, with a compound annual growth rate (CAGR) exceeding 80% from 2024 to 2030 [3] - The solid-state battery market in China is expected to expand significantly, with a market size projected to reach 20 billion yuan by 2030 [3] - The solid-state battery sector is seen as a "0-1" industry trend, with potential for significant capital inflow if positive industry changes occur [3] Group 3: PCB Industry Growth - The PCB industry is entering a growth cycle driven by AI applications, with expectations for simultaneous increases in both volume and price [4] - Copper-clad laminates, which account for approximately 27% of PCB cost structure, are critical materials for PCB manufacturing [4] - High-frequency and high-speed copper-clad laminates are expected to see rapid demand growth due to applications in AI and 5G [4] Group 4: Computing Power Chain Investment - OpenAI and Meta are increasing investments in AI infrastructure, with OpenAI planning a data center in India using over 1 GW of power and Meta planning to invest $600 billion in U.S. data centers by 2028 [5] - The ongoing expansion of global computing power demand is likely to benefit leading optical module companies [5] Group 5: Domestic Intelligent Driving Chip Market - The development of the intelligent driving sector is becoming a core function in the automotive industry, with significant advancements expected by 2025 [6] - Domestic intelligent driving chip suppliers are poised for accelerated market share growth due to competitive pricing and production experience [6] - The trend of domestic substitution is expected to further enhance the market position of local chip manufacturers [6]

Core Viewpoint - The report from浦银国际 highlights the growing importance of intelligent driving chips in the automotive industry, particularly as the sector transitions into a new phase of development, with a focus on smart assisted driving as a core feature [1] Industry Summary - The intelligent driving chip industry is positioned as a high-value segment within the automotive supply chain, driven by advancements in smart driving technologies [1] - By 2025, Chinese automakers are expected to push for "intelligent driving equality," leading to a decrease in the price range of models equipped with high-speed NOA [1] - Leading new energy vehicle companies are advancing algorithm evolution based on end-to-end architecture, which will promote both volume and price increases for intelligent driving chips [1] Company Summary - The report initiates coverage on Horizon Robotics (09660) and Hezhima (000716), both receiving "Buy" ratings with target prices set at HKD 12 and HKD 21.4 respectively [1] - Local intelligent driving chip suppliers are expected to gain market share due to their cost-effective products and production experience, benefiting from the trend of domestic substitution [1] Market Data - According to Frost & Sullivan, the global automotive-grade SoC market reached RMB 57.9 billion in 2023 and is projected to grow to RMB 205.3 billion by 2028, with a compound annual growth rate (CAGR) of 29% [1] - In China, the automotive-grade SoC market size was RMB 26.7 billion in 2023, expected to increase to RMB 102 billion by 2028, capturing 50% of the global market share [1]

Core Viewpoint - The report from浦银国际 indicates that as the electric vehicle (EV) industry enters its second phase, intelligent assisted driving has become a core function of automotive intelligence, with smart driving chips emerging as a key component in the value chain [1] Industry Summary - The development of intelligent driving chips is expected to see a rise in both volume and price by 2025, driven by domestic automakers pushing for equal access to intelligent driving features and leading EV companies advancing algorithm evolution [1] - Local smart driving chip suppliers are gaining prominence, leveraging cost-effective chip products and production experience to expand their customer base, benefiting from the trend of domestic substitution [1] Company Summary - The report initiates coverage of the smart driving chip industry with an "overweight" rating and also covers companies Horizon Robotics and Black Sesame Technologies, assigning "buy" ratings with target prices of HKD 12 and HKD 21.4 respectively [1]

Investment Rating - The report gives an "Overweight" rating for the intelligent driving chip industry and a "Buy" rating for Horizon Robotics-W (9660.HK) and Black Sesame Intelligence (2533.HK) [3][7][9]. Core Insights - The intelligent driving chip market is expected to expand significantly, with the global ADAS SoC market projected to reach RMB 92.5 billion by 2028 [7]. - The penetration rate of ADAS functions in China's new energy passenger vehicles reached 82.6% in the first half of 2025, indicating a strong demand for intelligent driving capabilities [8][55]. - Domestic intelligent driving chip suppliers are gaining market share due to their cost-effective products and production experience, benefiting from the trend of domestic substitution [9]. Summary by Sections Industry Background - The automotive electronic architecture is evolving, with SoC becoming the mainstream choice for control chips in intelligent electric vehicles [13][14]. - The intelligent driving chip is a core component for achieving advanced driver-assistance systems (ADAS) and autonomous driving functions [19]. Current Industry Status - The intelligent driving process is still in its early stages, with high-level ADAS function penetration remaining low [39]. - The global electric vehicle market is expected to exceed 20 million units in 2025, with a penetration rate of over 25% [39]. Development Trends - The intelligent driving chip market is rapidly expanding, driven by the increasing complexity of software and hardware requirements for ADAS functions [7][19]. - The market for automotive-grade SoC is projected to grow from RMB 57.9 billion in 2023 to RMB 205.3 billion by 2028, with a compound annual growth rate of 29% [19]. Competitive Landscape - Domestic manufacturers are expected to capture a larger market share as they improve their production capabilities and experience [9]. - The competition in the intelligent driving chip market is intensifying, with various players entering the field [9]. Investment Value - The report is optimistic about the upgrade of ADAS capabilities and the domestic substitution trend, indicating potential long-term growth in the robotics sector [9][10]. - The intelligent driving chip market is expected to see a simultaneous increase in both volume and price due to advancements in algorithms and hardware requirements [9]. Company Coverage - Horizon Robotics-W (9660.HK) is positioned as a leading player in the domestic intelligent driving chip market, with a target price of HKD 12.0, representing a potential upside of 22% [11]. - Black Sesame Intelligence (2533.HK) is also highlighted as a key player, with a target price of HKD 21.4, indicating a potential upside of 16% [11].

Group 1 - The demand for intelligent driving is driving fierce competition among chip platforms, with local companies like Horizon Robotics and Black Sesame Intelligence releasing next-generation smart driving chips that achieve breakthroughs in computing power and energy efficiency [1] - The latest smart driving chips maintain cost advantages while significantly improving computing power density, with Horizon's Journey 6 series chips supporting 20 TOPS computing power, a 60% performance increase and a 25% reduction in power consumption compared to the previous generation [1] - The rapid iteration of chip platforms is enhancing the performance of intelligent driving systems and reducing costs, enabling mainstream chips to support advanced features like high-speed NOA and memory parking, which will accelerate the penetration of intelligent driving functions into economic models priced at 100,000 to 150,000 yuan [1] Group 2 - The market share of local intelligent driving chips has surpassed 40% in the first half of this year, with expectations to reach 50% by 2026, indicating the growing importance of local supply chains in the intelligent driving sector [1] - The collaboration between solution providers like Four-dimensional Map New and chip companies will further promote the popularization of intelligent driving technology and cost optimization [1] - The intelligent driving chip platform is evolving towards high performance, low power consumption, and low cost, laying a solid foundation for the large-scale commercialization of intelligent driving technology [2]

Core Insights - The report from Guosheng Securities highlights that System on Chip (SoC) is the mainstream trend for automotive computing chips, with high barriers to entry due to design and manufacturing complexities, high capital investment, and long validation cycles, making intelligent driving chips the most valuable core component in intelligent driving systems [1][2] Group 1: Market Trends - The trend of integrated cockpit and driving systems is significant, which can reduce costs, with single-chip solutions like NVIDIA Thor and Qualcomm 8775 expected to achieve large-scale production by 2025 [1] - The penetration of advanced driver assistance systems (ADAS) is accelerating, with the market for L3 and above intelligent driving systems expected to grow significantly, particularly in lower-priced vehicle segments [2] Group 2: Market Size and Growth - According to Frost & Sullivan, the global and Chinese ADAS SoC market sizes are projected to reach 275 billion and 141 billion yuan in 2023, respectively, with expected growth to 925 billion and 496 billion yuan by 2028, reflecting compound annual growth rates of 28% and 29% [2] - The ADS market (L3 to L5) is still in its early development stage, with expectations for the global ADS SoC market to reach 45.4 billion yuan by 2030 [2] Group 3: Competitive Landscape - NVIDIA holds a dominant position in the domestic intelligent driving assistance chip market with a 39% market share in 2024, while Horizon Robotics and Black Sesame Intelligence are expected to increase their market shares due to the trend of domestic substitution [3] - The intelligent driving chip industry is currently characterized by high investment, high growth, and low profitability, with companies generally operating at a loss, but scale effects are beginning to show, leading to a gradual narrowing of loss rates [3] Group 4: Investment Opportunities - The rapid increase in intelligent driving penetration is creating significant market space, leading to high growth in demand for intelligent driving chips, with opportunities for high-cost performance domestic chips [4] - Companies to watch include Horizon Robotics (09660), Black Sesame Intelligence (02533), NVIDIA (NVDA.US), Qualcomm (QCOM.US), XPeng Motors (09868), and Tesla (TSLA.US) [4]