Core Viewpoint - The automotive industry is experiencing a significant transformation driven by advancements in intelligent driving technology, with a notable increase in demand for mid-to-high-end SoC chips expected by 2025 [1][2]. Industry Summary - The intelligent driving technology is evolving through a dual approach of upward breakthroughs and downward popularization, with a clear iterative path emerging [1]. - The market for ADAS SoC chips is projected to reach 496 billion CNY in China and 925 billion CNY globally by 2028, with a compound annual growth rate (CAGR) of 28.6% and 27.5% from 2023 to 2028, indicating a high market demand [1]. - The push for "intelligent driving equality" among domestic OEMs is leading to a price war, with mainstream brands focusing on models priced below 200,000 CNY, which may open up the mid-to-high-end chip market [1]. Company Summary - Long-term prospects suggest that only leading automakers will develop their own chips, while third-party chip manufacturers may see greater market opportunities than expected [2]. - The pursuit of full-stack self-research in intelligent driving reflects a desire for efficient data processing, supply chain security, and cost reduction in intelligent driving solutions [2]. - The competitive landscape for different levels of intelligent driving solutions will be determined by factors such as cost efficiency, supplier support, and the strategic choices of companies in their self-research journeys [2]. - Black Sesame Intelligence's competitive position in the SoC ecosystem is relatively weak, but the company has strong hardware capabilities and is forming alliances to enhance its algorithmic capabilities [2]. - The management team has a forward-looking approach, with strategic plans in cross-domain computing chips and robotics, which may become a second growth driver for the company [2]. - As of the end of H1 2025, the company had a net cash position of 1.97 billion CNY, providing a solid foundation for ongoing product development and exploration of new business scenarios [2]. Financial Forecast - Revenue projections for the company from 2025 to 2027 are 850 million CNY, 1.616 billion CNY, and 2.344 billion CNY, with year-on-year growth rates of 79.23%, 90.12%, and 45.05% respectively [3]. - The company is currently in a phase of high R&D investment and customer expansion, making it difficult to achieve profitability in the short term [3]. - A price-to-sales (PS) valuation method is used for the company, with comparable companies showing an average PS of approximately 17.8x for 2025 [3]. - The company is rated as a "buy" due to its complete product ecosystem and the potential for key customer breakthroughs to drive long-term growth [3].

Core Viewpoint - Huayuan Securities initiates coverage on Hezhima (000716) Intelligent, giving it a "Buy" rating, with projected revenues of 850 million, 1.616 billion, and 2.344 billion yuan for 2025-2027, representing year-on-year growth rates of 79.23%, 90.12%, and 45.05% respectively [1] Group 1: Market Dynamics and Technology Trends - The year 2025 is anticipated to be a pivotal year for the mid-to-high-end intelligent driving SoC market, driven by the resonance of technology cycles and market demand [1] - The intelligent driving SoC chips are expected to significantly benefit from the growth in autonomous vehicle sales, with the ADAS SoC market in China and globally projected to reach 49.6 billion and 92.5 billion yuan by 2028, with compound annual growth rates of 28.6% and 27.5% from 2023 to 2028 [1] Group 2: Competitive Landscape and Strategic Insights - Long-term, only leading car manufacturers are expected to develop their own chips, while third-party chip manufacturers may see market opportunities exceed expectations [2] - The competition in different levels of intelligent driving solutions will be determined by factors such as cost efficiency, supplier support, and the strategic choices made by companies in their self-research paths [2] Group 3: Company Strengths and Growth Potential - Hezhima Intelligent has a robust hardware capability and is forming alliances with algorithm companies to enhance its competitive edge in the intelligent driving SoC ecosystem [3] - The management team is strategically positioning the company in cross-domain computing chips and robotics, which may become a second growth driver in the long term [3] - The company has a strong cash reserve of 1.97 billion yuan as of the end of H1 2025, providing a solid foundation for ongoing product development and exploration of new business scenarios [3]

Core Viewpoint - Huayuan Securities initiates coverage on Hezhima Intelligent (02533) with a "Buy" rating, projecting revenue growth from 850 million to 2.344 billion yuan from 2025 to 2027, with year-on-year growth rates of 79.23%, 90.12%, and 45.05% respectively [1] Group 1: Market Dynamics and Technology Trends - The year 2025 is anticipated to be a pivotal year for the mid-to-high-end intelligent driving SoC market, driven by the resonance of technology cycles and market demand [1] - The intelligent driving SoC chips are expected to significantly benefit from the growth in autonomous vehicle sales, with the ADAS SoC market projected to reach 49.6 billion yuan in China and 92.5 billion yuan globally by 2028, with compound annual growth rates of 28.6% and 27.5% from 2023 to 2028 respectively [1] Group 2: Competitive Landscape and Strategic Insights - Long-term, only leading automakers are expected to develop their own chips, while third-party chip manufacturers may see market opportunities exceed expectations [2] - The competition in different levels of intelligent driving solutions will be determined by factors such as cost efficiency, supplier support, and the strategic choices made by companies in their self-research paths [2] Group 3: Company Strengths and Growth Potential - Hezhima Intelligent has a robust hardware capability and is forming alliances with algorithm companies to enhance its competitive edge, despite being positioned lower in the SoC competitive ecosystem [3] - The management team is strategically focusing on cross-domain computing chips and robotics, which may become a second growth driver for the company [3] - As of the end of H1 2025, the company had a net cash position of 1.97 billion yuan, providing a solid foundation for ongoing product development and exploration of new business scenarios [3]

Core Viewpoint - The report from China Merchants Securities International highlights the increasing interest in AI-driven robots and intelligent driving technologies during a recent roadshow in South Korea, with a ranking of focus areas being robots > intelligent driving > complete vehicles and components [1] Group 1: Robotics Sector - The humanoid robot chain recommends UBTECH as the top pick, with a target price raised from HKD 155 to HKD 172, reflecting a projected price-to-sales ratio of 26.7 times for the fiscal year 2026, driven by sustained order catalysts [1] - UBTECH's Walker series humanoid robots have accumulated contract amounts nearing CNY 430 million, with a recent CNY 250 million order being the largest humanoid robot order globally [1] - The company is expected to accelerate technology iteration due to continuous order fulfillment and delivery, with BOM costs projected to decrease by 20-30% by year-end and an additional 30-50% reduction anticipated next year [1] Group 2: Intelligent Driving Sector - The intelligent driving chain prioritizes recommendations for Horizon Robotics, Hesai Technology, and SUTENG Juchuang, focusing on SoC chips and LiDAR technologies [1] - The automotive sector recommendations include Geely Automobile, Xpeng Motors, and Fuyao Glass, indicating a strong outlook for these companies in the context of intelligent driving advancements [1]

Core Viewpoint - The automotive industry is transitioning from a centralized to a distributed electronic architecture, with SoC chips becoming the core component for intelligent driving [3][4]. Group 1: Market Size and Growth - By 2030, the domestic intelligent driving solution market is expected to exceed 400 billion RMB, with global and Chinese smart vehicle sales projected to reach 81.5 million and 29.8 million units respectively [4]. - The penetration rates for intelligent driving (ADAS + AD) are anticipated to reach 96.7% globally and 99.7% in China by 2030, with the market size for intelligent driving solutions expected to surpass 1 trillion RMB globally and 400 billion RMB in China [4]. Group 2: SoC Market Dynamics - In 2024, NVIDIA is expected to dominate the high-end SoC market with over 30% market share, while Horizon is projected to lead the mid-to-low-end market with over 40% share, which is likely to expand further [4]. - Mainstream automakers are entering the vehicle SoC chip market through self-research, joint ventures, strategic investments, and collaborations, but the majority will still rely on third-party SoC manufacturers like NVIDIA and Horizon due to the lengthy development cycle and high costs associated with vehicle-grade chips [5]. Group 3: Technological Advancements and Demand - The penetration of urban NOA (Navigation on Autopilot) is expected to accelerate in the lower market segments, with demand for mid-to-high performance chips increasing as new technologies focus on VLA (Vehicle Location Awareness) and world models [6]. - By 2025, urban NOA is projected to enter the 150,000 to 250,000 RMB price range, with BYD promoting "intelligent driving equality," potentially driving high-end intelligent driving features into vehicles priced around 100,000 RMB [6].

Investment Rating - The report maintains a "Buy" rating for NVIDIA and Horizon Robotics, with a recommendation to "Hold" for Black Sesame Technology and Youjia Innovation [6]. Core Insights - The automotive industry is transitioning from a distributed to a centralized electronic architecture, with SoC chips becoming the core components of intelligent driving [2][9]. - By 2030, the domestic intelligent driving solution market is expected to exceed 400 billion RMB, with significant market shares held by NVIDIA and Horizon Robotics in the high-end and mid-low-end SoC markets, respectively [3][4]. - The report highlights the challenges faced by automakers in achieving profitability while entering the SoC market, indicating that third-party SoC manufacturers will continue to play a crucial role [4][9]. Summary by Sections Section 1: Automotive Intelligent Driving Trends - Intelligent driving is defined as the use of computer systems to achieve partial or complete automation of vehicle driving, categorized into five levels by SAE [19][20]. - The transition from distributed to centralized electronic architecture is driven by the need for enhanced functionality and efficiency in intelligent driving systems [23][24]. Section 2: Market Size and Share - The report forecasts that the global and Chinese intelligent driving (ADAS + AD) solution markets will exceed 1 trillion RMB and 400 billion RMB, respectively, by 2030, with penetration rates reaching 96.7% and 99.7% [3][4]. - In 2024, NVIDIA is expected to hold over 30% of the high-end SoC market, while Horizon Robotics is projected to maintain over 40% of the mid-low-end market [3][4]. Section 3: Industry Dynamics - Automakers are exploring various strategies to enter the SoC market, including self-research, joint ventures, and strategic partnerships, but face significant challenges in achieving profitability [4][9]. - The report emphasizes the increasing demand for high-performance, cost-effective SoC chips as urban navigation assistance (NOA) penetrates lower-priced vehicle segments [4][9]. Section 4: Investment Recommendations - The report suggests that as L3-level regulations and policies are refined, the penetration of L2+ and above intelligent driving systems is expected to accelerate, benefiting third-party SoC manufacturers [5][11]. - Key companies to watch include NVIDIA, Horizon Robotics, Qualcomm, Black Sesame Technology, and Youjia Innovation, with a focus on their growth potential in the intelligent driving SoC market [5][11].