Core Viewpoint - Recent accidents related to intelligent assisted driving have raised significant public concern, prompting a strong emphasis on safety standards in the industry [1] Group 1: Regulatory Developments - The Ministry of Industry and Information Technology (MIIT) emphasized "safety first, quality first" at the 2025 World Intelligent Connected Vehicles Conference, indicating a heightened focus on the safety of new energy vehicles [1] - The National Market Supervision Administration announced the establishment of a reporting system for fire accidents involving new energy vehicles and a remote upgrade reporting system [1] - A public consultation on the mandatory national standard for "Safety Requirements for Combined Driving Assistance Systems" is ongoing, which sets comprehensive technical requirements across various functions [1][3] Group 2: Industry Response - Companies need to collaborate with partners to enhance driver state monitoring systems, upgrade hardware like steering wheel capacitive sensing devices and in-car cameras, and develop algorithms for real-time monitoring of driver hand and gaze status [2][3] - The new standards require precise detection and alerts for driver hand and gaze disengagement, raising the accuracy standards for steering wheel detection and driver monitoring systems [2][4] - Safety features previously exclusive to high-end models are now accelerating into the mid-to-low-end market, driven by regulatory pressures that promote the widespread adoption of automotive safety technologies [2][6] Group 3: Technological Upgrades - The new standards indirectly promote upgrades in sensors and computing platforms, necessitating higher performance sensors like 4D millimeter-wave radar or laser radar to address typical hazardous scenarios [5][6] - The driver monitoring system (DMS) will require advanced cameras and algorithms to accurately capture driver facial expressions and eye movement characteristics [5] - The estimated AI computing power required to support such high-performance sensors for achieving Navigation on Autopilot (NOA) functionality is projected to exceed 128 TOPS [5] Group 4: Market Implications - The national standard establishes a unified safety baseline for combined driving assistance systems, which is crucial for industry development and quality supervision [6][7] - The standardization of technology and testing methods will facilitate interoperability among different brands, reducing R&D costs and accelerating the commercialization of autonomous driving technologies [6][7] - The shift towards safety features in mid-to-low-end vehicles is expected to enhance the market value and space for automotive safety products, benefiting companies like Joyson Safety Systems [7]

Core Viewpoint - Recent accidents related to intelligent assisted driving have raised significant public concern, prompting a strong emphasis on safety in the development of smart connected vehicles, as highlighted by government officials at the 2025 World Intelligent Connected Vehicle Conference [1][3]. Group 1: Regulatory Developments - The Ministry of Industry and Information Technology (MIIT) has emphasized "safety first, quality foremost" in its approach to new energy vehicle safety [1]. - The National Market Supervision Administration is establishing a reporting system for fire accidents involving new energy vehicles and a remote upgrade reporting system [1]. - A public consultation on the mandatory national standard for "Safety Requirements for Intelligent Connected Vehicles' Combined Driving Assistance Systems" is ongoing, with a focus on human-machine interaction, functional safety, and data recording [1][3]. Group 2: Industry Response - Automakers are required to collaborate with partners to enhance driver state monitoring systems, upgrade hardware like steering wheel capacitive sensing devices, and develop algorithms for real-time monitoring of driver hand and gaze status [3][6]. - The new standards necessitate a shift from indirect detection methods to more precise monitoring of driver engagement, raising the bar for the accuracy of driver monitoring systems [3][7]. Group 3: Technology Upgrades - The standards will drive upgrades in sensor performance and computing platforms, with a need for higher computational power to support advanced functionalities like Navigation on Autopilot (NOA) [8][10]. - The introduction of 4D millimeter-wave radar or laser radar is expected to enhance the detection of typical hazardous scenarios, addressing limitations of pure visual solutions [8][10]. Group 4: Market Implications - The mandatory national standard sets a unified safety baseline for combined driving assistance systems, which is expected to enhance product safety and encourage investment in technology development [9][10]. - The push for standardization is anticipated to accelerate the adoption of safety technologies in mid- to low-end vehicles, expanding the market for safety manufacturers [4][10].

Core Viewpoint - The Ministry of Industry and Information Technology (MIIT) of China is soliciting public opinions on the mandatory national standard for "Safety Requirements for Intelligent Connected Vehicles' Combined Driving Assistance Systems," which aims to establish comprehensive safety technical requirements and fill the safety baseline gap in the industry [1][10]. Group 1: Safety Requirements - The draft standard includes requirements for human-machine interaction, functional safety, expected functional safety, information security, and data recording, creating a "triple safety guarantee" [1][10]. - The assistance driving system must have capabilities for detecting hand and gaze disengagement, issuing alerts if the driver fails to respond, and can safely deactivate if necessary [2][3]. - If a driver repeatedly disengages their hand or gaze, they will be prohibited from using the assistance driving system for at least 30 minutes [2][3]. Group 2: Data Recording and Monitoring - The standard emphasizes the need for accurate data recording during the operation of combined driving assistance systems to support accident investigation and analysis [3][6]. - It includes requirements for user instructions, driver training, driver status monitoring, and system deactivation to minimize misuse of the system [3][6]. Group 3: International Coordination - The standard aligns with international regulations, such as UN R171, while addressing specific needs of China's complex traffic scenarios [5][7]. - It differentiates itself by detailing requirements for driver disengagement detection and the prohibition of suppressing alerts for hand disengagement [5][6]. Group 4: Implementation Timeline - The proposed implementation date for the national standard is January 1, 2027, with an estimated adjustment period of 2 years for automotive companies to modify their products [8][9]. - Software modifications may take 3 months to 1 year, while hardware adjustments could require up to 2 years [8]. Group 5: Market Impact - The standard is expected to guide healthy industry development, provide technical support for industry management, and promote a shift from "technology-driven" to "standard-led" innovation in the intelligent driving sector [1][10]. - The increasing prevalence of combined driving assistance systems, with a sales growth of 21.31% in the first seven months of the year, highlights the need for standardized safety measures [10].

Core Insights - Junsheng Electronics is experiencing a recovery in automotive safety profitability and has reached a new production cycle for automotive electronic technologies while actively expanding into robotics [1] - The company holds a leading market share in automotive safety and intelligent cockpit domain control, with record high orders ensuring future growth [1] Automotive Safety and Technology - Junsheng Electronics has a significant first-mover advantage in technology, ranking second globally in passive safety market share and fourth in intelligent cockpit domain control [1] - The company is expected to benefit from the EU's mandatory driver monitoring systems for new cars in 2024 and the evolution of China's cockpit monitoring solutions from single-function DMS to multi-functional and higher-value IMS systems [1] - Global human-machine interaction and cockpit domain control are projected to grow at annual rates of 14% and 22% respectively, reaching 357 billion and 148.3 billion by 2028 [1] - The global intelligent driving domain controller market is expected to grow at an annual rate of 38% to 63.5 billion from 2024 to 2028, while the global 5G T-Box market is projected to grow at 78% to 1.6 billion [1] Robotics and Strategic Partnerships - Junsheng Electronics is strategically positioning itself in the "automotive + robotics" sector by collaborating with companies like Zhiyuan to develop integrated hardware solutions [1] - The company has launched sensor kits, mechas, BMS, and wireless charging systems as part of its robotics initiatives [1] Financial Projections - Based on the value of its "automotive + robotics" moat and growth potential, Junsheng Electronics is projected to achieve net profits of 1.5 billion, 1.8 billion, and 2.2 billion for the years 2025 to 2027, with a compound annual growth rate of 31% [1]