Core Viewpoint - The company, SUTENG JUCHUANG (02498), has announced a share buyback of 2.9 million shares at a total cost of HKD 9.9175 million, signaling confidence in its future growth and current stock price [1] Company Summary - The company has achieved a significant milestone in core technology by successfully passing AEC-Q series automotive certification for its self-developed SPAD-SoC and 2D VCSEL chips [1] - It is the only global technology enterprise to have all three core links of digital lidar—transmission, reception, and processing—achieve automotive-grade standards with self-developed chips [1] - The new generation EM platform products have entered mass production, with EM4 being the only lidar in mass production with a range exceeding 500 meters, and E1 being the only fully solid-state lidar in mass production [1] - The company has secured orders from eight leading automotive manufacturers for 45 vehicle models, bringing the total number of designated models to 133 [1] Industry Summary - A new national standard in China, "Safety Requirements for Intelligent Connected Vehicle Combination Driving Assistance Systems," has included lidar for the first time, which is expected to benefit the industry [1] - The convergence of core technological breakthroughs, product mass production, and favorable policies is reinforcing the company's market leadership position [1]

Core Viewpoint - RoboSense has achieved a significant milestone by having its two core chips for digital lidar pass the AEC-Q102 automotive reliability certification, making it the only company globally to have self-developed chips for the entire digital lidar link that meet automotive standards [1][4] Group 1: Certification and Technology - RoboSense's self-developed SPAD-SoC and 2D VCSEL chips have successfully passed the AEC-Q certification, marking a breakthrough in the global certification of digital lidar core chips [1][4] - The AEC-Q certification involves rigorous testing under extreme conditions, ensuring the reliability of automotive electronic components [4] Group 2: Performance and Innovation - The digital architecture established by RoboSense requires only two core chips to achieve the same functionality as traditional analog lidar, which typically needs seven key components [6] - The SPAD-SoC chip integrates SPAD receiving arrays with data processing SoC, enhancing target recognition rates by 99% and achieving a high sampling rate of 440 billion samples per second [6] - The 2D VCSEL chip is the world's only mass-produced two-dimensional addressable VCSEL emitting chip, which significantly improves laser emission efficiency and energy utilization [8] Group 3: Proprietary Technologies - RoboSense's proprietary technologies include Crosstalk Immunity Encoding, PicoSecond Timing Technology, and Adaptive Fusion Algorithm, which enhance signal processing and measurement accuracy while reducing power consumption [10][11] Group 4: Market Applications and Partnerships - RoboSense's digital lidar platforms have entered mass production, covering applications in Robotaxi, ADAS, and service robots [11] - The EM platform has secured contracts with eight major manufacturers for 45 vehicle models, including a significant partnership with a leading new energy vehicle company [13][14] - The combination of EM4 and E1 products is becoming the preferred choice for L3 and L4 autonomous driving applications, with multiple contracts from top Robotaxi clients [14][16]

Core Insights - Zhongyou Securities initiates coverage on SUTENG JUCHUANG (02498) with a "Buy" rating, projecting revenues of 2.433 billion, 3.739 billion, and 5.221 billion yuan for 2025, 2026, and 2027 respectively [1] - The company reported a 7.7% year-on-year increase in revenue for H1 2025, reaching 783 million yuan, with gross margin improving from 13.6% to 25.9% compared to the same period last year [1] Group 1: Revenue and Growth - The robotics and other sectors are highlighted as the main growth drivers for the company in the first half of the year, with LiDAR product revenue reaching 221 million yuan and sales skyrocketing from 8,900 units in 2024 to 46,300 units, marking a staggering year-on-year increase of 420.2% [1] - In Q2 2025, sales reached 34,400 units, reflecting a year-on-year growth of 631.9% [1] Group 2: Profitability and Partnerships - The gross margin for robotic LiDAR in H1 2025 improved significantly from 26.1% to 45.0%, showcasing the benefits of scale [1] - The company has achieved substantial results in customer expansion, forming partnerships with several leading global robotic lawn mower manufacturers, with order sizes exceeding seven figures, including a three-year strategic cooperation agreement with Kuka Technology for 1.2 million solid-state LiDAR units [1] Group 3: Market Position and Product Development - The company leverages its self-developed SPAD-SOC chip to launch the E platform solid-state LiDAR, gaining a competitive edge in the Robotaxi sector [2] - The first mass-produced solid-state LiDAR, E1, has become the industry's first large-scale commercial solid-state LiDAR, with the EM4+E1 product combination validated by eight leading Robotaxi clients, covering over 90% of the global L4 sector [2] - Anticipated mass production of the "EM4+E1" by top Robotaxi clients by the end of the year is expected to drive further revenue growth, with projected shipments reaching the tens of thousands [2]