Core Viewpoint - The company reported a strong performance in H1 2025, with revenue growth and advancements in autonomous driving technology, indicating a positive outlook for future growth opportunities [1][2]. Group 1: Financial Performance - In H1 2025, the company achieved revenue of 250 million yuan, representing a year-on-year increase of 40.4% [1] - The gross margin decreased by 25.2 percentage points to 24.8% [1] - Adjusted net profit was a loss of 550 million yuan, which reflects an improvement in loss by 89% year-on-year [1] Group 2: Autonomous Driving Business - The revenue from driver assistance products and solutions increased by 41.6% year-on-year to 237 million yuan, driven by an increase in mass production models and enhanced customer acquisition capabilities [1] - The company is advancing multiple chip series, including the A1000 series, which is being used in various models such as Geely Galaxy E8 and Dongfeng Yipai 007/008 [1] - The C1200 series has completed testing in multiple cities and is set for mass deployment with leading new energy customers [1] Group 3: Strategic Partnerships and Market Expansion - The company is deepening collaborations with major automotive clients like Geely, BYD, Dongfeng, and FAW, with a record number of domestic and overseas model designations in H1 2025 [2] - The company anticipates that several models based on its own chips will begin overseas sales in the second half of 2025, with shipments already starting [2] - The expansion into non-passenger vehicle scenarios, such as robotics and low-speed L4 applications, is underway, with strategic partnerships established in the robotics sector [2] Group 4: Future Projections - The company maintains revenue forecasts of 880 million yuan, 1.43 billion yuan, and 1.92 billion yuan for 2025, 2026, and 2027 respectively [3] - The price-to-sales ratios for 2025, 2026, and 2027 are projected to be 12.4, 7.7, and 5.7 times, respectively [3]

Investment Rating - The report assigns a "Buy" rating for Black Sesame Intelligence (02533.HK) as a first-time coverage [1]. Core Views - Black Sesame Intelligence is a leading supplier of automotive-grade intelligent vehicle computing chips and solutions, focusing on autonomous driving products and solutions. The company benefits from the expanding market for autonomous driving solutions driven by the trend of "intelligent driving equality" [5][6]. - Revenue projections for the company are estimated at 792 million, 1.253 billion, and 1.942 billion CNY for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 66.9%, 58.3%, and 55.0% [5][8]. Summary by Sections Company Overview - Black Sesame Intelligence began with high-performance chips for autonomous driving and has expanded into cross-domain computing chips, opening new market opportunities [16]. - The founder holds significant control over the company, and the management team possesses strong technical expertise [18][22]. Main Products - The company offers the Huashan and Wudang series of SoC hardware, focusing on autonomous driving and intelligent imaging solutions. The Huashan series includes the A1000 and A2000 chips, which support various levels of autonomous driving functions [25][26]. - The Wudang series, particularly the C1200 chip, is a pioneer in cross-domain computing, integrating multiple functionalities for smart vehicle control [26]. Financial Analysis - The autonomous driving products and solutions are the primary revenue source, with a projected revenue of 4.38 billion CNY in 2024, accounting for 92.35% of total revenue [38]. - The company has experienced rapid revenue growth due to the mass production of the Huashan A1000 series, with further growth expected from the Wudang C1200 and Huashan A2000 series [39][40]. Market Potential - The global and Chinese markets for ADAS applications are expected to grow significantly, with projected CAGRs of 27.5% and 28.6% from 2023 to 2028 [6][60]. - The company holds a 2.2% market share in the Chinese autonomous driving chip and solution market, ranking fifth, indicating substantial room for growth [67].