Core Viewpoint - Guosheng Securities expresses optimism about SUTENG JUCHUANG's (02498) laser radar product order demand and commercialization potential, projecting total revenue of 2.3/3.5/4.4 billion from 2025 to 2027, with year-on-year growth rates of 37%/56%/24% [1] Group 1: Financial Performance - SUTENG JUCHUANG reported Q3 2025 shipment of 186,000 laser radars, a year-on-year increase of 34.0%, with ADAS laser radar shipments at approximately 150,000 units, up 14.3%, and robot laser radar shipments at about 36,000 units, up 393.1% [1] - The company's Q3 2025 revenue reached 410 million, with product/solution/service and other revenues at 390/10/8 million respectively, and a gross margin of approximately 23.9% [1] Group 2: ADAS Laser Radar Developments - In the domestic market, the EM platform set to launch in 2025 has secured orders from 13 automakers for a total of 56 models, with EMX receiving orders for 49 models expected to enter mass production in 2026 [2] - The EM4 model has been integrated into several vehicles from leading new energy automakers and is becoming a core component for L3 autonomous driving, with new model orders from major clients enhancing the customer and model diversity [2] Group 3: Robotics and Other Laser Radar Products - In the robotic lawnmower sector, the company introduced E1R and Airy products to address complex boundary recognition needs [3] - In urban delivery, the company has established partnerships with 90% of leading global clients using core products EMX, E1R, and Fairy, while also collaborating with Didi on a new generation of Robotaxi models [3] Group 4: Long-term Growth Potential - The company unveiled the Active Camera2 at the IROS conference, which is the industry's first integrated sensor system combining dTOF, RGB stereo, and IMU for enhanced 3D spatial perception and motion information, recognized by Yole Group as a representative case for humanoid robot perception solutions [4]

Core Viewpoint - Guosheng Securities is optimistic about the order demand and commercialization potential of SUTENG JUCHUANG's (02498) LiDAR products, forecasting total revenue of 2.3 billion, 3.5 billion, and 4.4 billion RMB for 2025-2027, representing year-on-year growth of 37%, 56%, and 24% respectively, with a non-GAAP net profit of -172 million, 163 million, and 366 million RMB [1] Group 1: Financial Performance - In Q3 2025, SUTENG JUCHUANG shipped 186,000 LiDAR units, a year-on-year increase of 34% [2] - The revenue for Q3 2025 reached 410 million RMB, with product, solution, and service revenues contributing 390 million, 10 million, and 8 million RMB respectively [2] - The gross margin for the company's products was approximately 23.9%, with automotive and robotics sectors having gross margins of about 18.1% and 37.2% respectively [2] Group 2: ADAS LiDAR Developments - In the domestic market, the EM platform set to launch in 2025 has secured orders from 13 automakers for a total of 56 models, with EMX receiving orders for 49 models expected to enter mass production in 2026 [3] - The EM4 model has been adopted in several vehicles from leading new energy car manufacturers and is becoming a core component for L3 autonomous driving [3] - Internationally, collaborations with automakers in Asia-Pacific, Europe, and North America are progressing, with revenue expected to be confirmed in the next 1-3 years, enhancing the overseas revenue share [3] Group 3: Robotics and Other LiDAR Products - The company has launched two new products, E1R and Airy, in the lawn mowing robot sector to address complex boundary recognition needs [4] - In urban delivery, the company has established partnerships with 90% of leading global clients using core products EMX, E1R, and Fairy [4] - For Robotaxi, SUTENG JUCHUANG has partnered with Didi for a new generation of Robotaxi models, utilizing a solution with 10 digital LiDAR units per vehicle [4] Group 4: Long-term Growth Potential - At the IROS conference in October, the company introduced Active Camera2, the industry's first integrated sensor system combining dTOF, RGB stereo, and IMU, recognized by Yole Group as a representative case for humanoid robot perception solutions [5]

Core Viewpoint - In Q3 2025, the company achieved revenue of 407 million yuan, a year-on-year decrease of 0.2% [3][9]. Financial Performance - In Q3 2025, the company reported a net loss of 101 million yuan, compared to a loss of 51 million yuan in Q2 2025 and a loss of 82 million yuan in Q3 2024 [3][9]. - The company's gross margin in Q3 2025 was 23.9%, an increase of 6.5 percentage points year-on-year, but a decrease of 3.8 percentage points quarter-on-quarter [4][5][14]. - For the first three quarters of 2025, the company achieved revenue of 1.19 billion yuan, a year-on-year increase of 1.2% [9]. Product Performance - In Q3 2025, total sales volume of LiDAR products reached 185,600 units, a year-on-year increase of 34.0% and a quarter-on-quarter increase of 17.3% [10]. - Revenue from ADAS application LiDAR products in Q3 2025 was 245 million yuan, a year-on-year decrease of 25.7% and a quarter-on-quarter decrease of 9.8% [3][9]. - Revenue from LiDAR products for robotics and other applications was 142 million yuan, a year-on-year increase of 157.8% [3][9]. Market Position and Strategy - The company is positioned as a global leader in the LiDAR and perception solutions market, integrating hardware and software to provide advanced perception capabilities for vehicles and robots [18]. - The company has established partnerships with over 90% of global Robotaxi and Robotruck enterprises, including major players like Didi and Pony.ai [55]. - The company aims to become a leading robotics technology platform, focusing on chip development, algorithms, and digital architecture [61]. Research and Development - In Q3 2025, the company's R&D expenses increased, with a R&D expense ratio of 44.15%, reflecting a year-on-year increase of 6.95 percentage points [20]. - The company has developed proprietary SPAD-SoC chips and 2D VCSEL chips, which have passed AEC-Q automotive certification, marking a significant technological advancement [27][26]. Product Innovations - The company launched the "Active Camera" as part of its robotics vision product line, integrating multiple sensor technologies to enhance robotic perception capabilities [39][32]. - The company has introduced a digital product matrix, including the EM platform, which has secured contracts with 13 automakers for 56 vehicle models [45][51]. Market Expansion - The company has received significant orders from major automotive manufacturers, with total orders exceeding one million units [51]. - The company is actively exploring the embodied intelligence field, focusing on autonomous movement and operation capabilities for robots [29].

Core Insights - The company reported a revenue of 407 million yuan in Q3 2025, a year-on-year decrease of 0.2% and a quarter-on-quarter decrease of 10.6% [1] - The net profit for Q3 2025 was -101 million yuan, compared to -51 million yuan in Q2 2025 and -82 million yuan in Q3 2024 [1] - The sales revenue from ADAS-related LiDAR products was 245 million yuan, a year-on-year decrease of 25.7% and a quarter-on-quarter decrease of 9.8% [1] - The revenue from robotics and other products was 142 million yuan, showing a year-on-year increase of 157.8% but a quarter-on-quarter decrease of 3.3% [1] - Total sales volume of LiDAR products reached 185,600 units, a year-on-year increase of 34.0% and a quarter-on-quarter increase of 17.3% [1] - The gross margin improved by 6.5 percentage points year-on-year to 23.9%, while the net margin was -24.6%, a year-on-year decrease of 4.5 percentage points [1] Product Development and Market Position - The company has a strong order backlog benefiting from the rapid development of ADAS and high-level autonomous driving [2] - In 2025, the company’s self-developed SPAD-SoC and 2D VCSEL chips received AEC-Q series automotive certification, establishing a unique mass-producible digital LiDAR matrix [2] - The company has secured contracts with 13 automotive manufacturers for 56 vehicle models, and over 90% of global Robotaxi and Robotruck companies have partnered with the company [2] - The company has achieved contracts with 12 overseas and joint venture brands for 23 vehicle models, covering key markets in Asia-Pacific, Europe, and North America [2] - The company has a total of 32 automotive manufacturers and Tier 1 suppliers with contracts for 144 vehicle models [2] Technological Advancements - The company introduced the "Active Camera2" at the IROS conference in October 2025, which is the first industry product to integrate dTOF, RGB stereo, and IMU for enhanced robotic perception [3] - The AC2 system provides 3D spatial awareness and six degrees of freedom motion information for robotic operations [3] Financial Forecast Adjustments - The revenue forecast for 2025-2027 has been adjusted to 2.069 billion, 3.109 billion, and 4.313 billion yuan, down from previous estimates of 2.489 billion, 3.617 billion, and 5.275 billion yuan [3] - The net profit forecast for 2025-2027 has been revised to -250 million, 60 million, and 460 million yuan, up from previous estimates of -280 million, 60 million, and 460 million yuan [3] - The company maintains an outperform rating despite the adjustments due to anticipated fluctuations in downstream demand [3]

Investment Rating - The report maintains an "Outperform" rating for the company [4][6][72] Core Insights - The company aims to become a global leader in robotic technology platforms, leveraging its advancements in AI and laser radar technology [25][72] - The company has seen a significant increase in laser radar sales, with a 34% year-on-year growth in total sales volume for Q3 2025 [1][9] - The company has a robust order book, benefiting from the rapid development of Advanced Driver Assistance Systems (ADAS) and high-level autonomous driving [2][72] Financial Performance - In Q3 2025, the company reported revenue of 407 million yuan, a slight decrease of 0.2% year-on-year and a 10.6% decrease quarter-on-quarter [1][8] - The net profit for Q3 2025 was -101 million yuan, compared to -51 million yuan in Q2 2025 and -82 million yuan in Q3 2024 [1][8] - The gross margin for Q3 2025 improved by 6.5 percentage points year-on-year, reaching 23.9% [1][16] Product Development - The company has developed a unique digital laser radar matrix, including products like EM4, EMX, and E1, which have passed automotive standards certification [2][35] - The company launched the "Active Camera 2," a pioneering sensor system that integrates multiple technologies for enhanced robotic perception [3][54] - The company is actively expanding its product offerings in the robotics sector, focusing on components that enhance robotic capabilities [39][43] Market Position - The company has secured partnerships with over 90% of key players in the Robotaxi and Robotruck sectors, indicating strong market penetration [2][65] - The company has received orders from 32 automotive manufacturers for a total of 144 vehicle models, showcasing its competitive position in the market [58][60] - The company is positioned to benefit from the growing demand for digital laser radar in various applications, including autonomous vehicles and robotics [72][65]

Core Viewpoint - The company is expected to benefit from rapid growth in downstream demand due to its digital product advantages, maintaining an outperform rating and a target price of HKD 47.00, which implies a 43% upside potential from the current stock price [1] Financial Performance - In Q3 2025, the company achieved revenue of CNY 407 million, aligning with previous expectations [2] - Gross margin improved year-on-year by 6.5 percentage points to 23.9% in Q3 2025 [2] - The robotics sector showed significant growth, with laser radar sales increasing by 393.1% year-on-year and revenue rising by 157.8% [2] - The company aims to achieve profitability in Q4 2025 [2] ADAS Business - The new EM platform digital products have gained recognition, with 13 automakers securing 56 model designations [3] - The EMX platform, targeting L2+ vehicles, has received 49 model designations and is expected to enter mass production in 2026 [3] - The EM4 platform is already integrated into several models, including Zeekr 9X and Zhiji LS6/LS9, positioning it as a core component for L3 vehicles [3] - The company has secured multiple model designations from 12 overseas and joint venture brands, including major European and North American electric vehicle manufacturers, indicating a new growth avenue [3] Robotics and Other Businesses - The company has partnered with Didi to equip its next-generation Robotaxi with 10 units of automotive-grade digital laser radar [4] - The company is entering the lawn mowing robot market with E1R and Airy, collaborating with several top 5 industry clients, with large-scale production set to begin in Q4 2025 [4] - In urban delivery, the company has partnered with 90% of leading global clients, and the newly launched Fairy has been commercialized with the New Stone Age unmanned vehicle X3 [4] - The introduction of Active Camera2 in October enhances the company's embodied intelligence layout [4]