Core Insights - The penetration rate of passenger cars equipped with combined driving assistance systems in China reached 62.6% in the first seven months of 2025, an increase of 40 percentage points compared to the same period in 2021, with sales of 7.76 million units [1] - The current market primarily features L2-level systems, which assist with basic driving tasks but do not provide full autonomous driving capabilities, placing the ultimate responsibility on the driver [1] - The development of intelligent driving in China is accelerating due to policy support, with significant initiatives expected to be implemented in 2025, including the introduction of national standards for combined driving assistance systems [1][2] Industry Developments - The introduction of national standards for L2-level driving assistance is anticipated to provide regulatory support and encourage innovation and quality improvement within the intelligent driving industry [2] - Major automotive manufacturers are shifting from fully in-house development of driving assistance technologies to strategic collaborations with solution providers, enhancing the penetration of intelligent driving technologies [2] - The supply chain for intelligent driving components, including lidar, cameras, and radar systems, is strengthening, with domestic suppliers increasing their influence and moving towards integrated hardware and software solutions [2] Company Highlights - Black Sesame (000716) is recognized as a key player in the domestic autonomous driving chip market, benefiting from the commercialization of L2+ technology and advancements towards L3 and L4 scenarios [3] - Horizon Robotics (09660) has achieved significant production milestones with its HSD series chips, establishing partnerships with international clients and positioning itself as a leader in integrated intelligent driving solutions [3] - SUTENG (02498) has successfully mass-produced high-line count lidar products, which are now featured in new models from various automotive brands [3] - Youjia Innovation (02431) has launched its unmanned logistics brand "Xiaozhu Unmanned Vehicle," marking its entry into the L4 autonomous driving sector and showcasing its ongoing commitment to high-level autonomous driving commercialization [4]

Core Insights - The penetration rate of passenger cars equipped with combined driving assistance systems in China reached 62.6% from January to July 2025, an increase of 5.7 million units and 40 percentage points compared to the same period in 2021 [1] - The current market primarily features L2 level systems, which assist with basic driving tasks but do not provide full autonomous driving capabilities, leaving the driver responsible [1] - The development of intelligent driving in China is accelerating due to policy support, with significant regulations and standards being established to enhance safety and performance in the industry [1][2] Industry Developments - The introduction of national standards for L2 level driving assistance is expected to provide regulatory support and drive innovation within the intelligent driving industry, benefiting the entire supply chain [2] - Major automotive manufacturers are shifting from fully self-developed solutions to strategic collaborations with technology providers, enhancing the integration of AI capabilities and increasing the penetration of intelligent driving technologies [2] - Domestic suppliers of components such as lidar, cameras, and radar are strengthening their influence in the industry and moving towards integrated hardware and software solutions [2] Relevant Companies - Black Sesame Intelligence (02533) is positioned to benefit from the commercialization of L2+ technology and advancements in L3 and L4 scenarios, having launched high-performance intelligent driving chips [3] - Horizon Robotics (09660) has achieved significant production milestones with its HSD chip series and is establishing international partnerships, aiming to expand its intelligent driving solutions globally [3] - Suoteng Juchuang (02498) has successfully mass-produced high-line count lidar products, which are now featured in new intelligent SUV models [3] - Youjia Innovation (02431) has entered the unmanned logistics sector with its "Xiaozhu" brand, showcasing its commitment to advancing high-level autonomous driving commercialization [4]

Group 1 - The core viewpoint of the report is that Horizon Robotics (09660) is positioned to benefit from the trends of domestic substitution, automotive intelligence, and edge AI development, with a target price set at HKD 12.44 and a "Recommended" rating maintained [1] - The company anticipates significant growth in its core forecasts for 2025-2027, with expected shipments of 4 million, 5.04 million, and 7 million units respectively, representing year-on-year increases of 38%, 26%, and 39% [1] - Revenue projections for the same period are set at CNY 36.2 billion, 58.5 billion, and 83.9 billion, with year-on-year growth rates of 52%, 62%, and 43% [1] Group 2 - The HSD (Horizon SuperDrive) solution is set for mass production, marking a significant change in the high-level autonomous driving market, with the first vehicle featuring this solution expected to launch in November 2025 [1] - The company has established a European headquarters in Munich and is building deep connections with international clients such as Bosch, Continental, and Volkswagen, which may help to expand its global reach [1] - In the first half of 2025, the company achieved a market share of 45.8% in basic ADAS and 32.4% in overall ADAS solutions, leading the Chinese market [2] Group 3 - The company has been included in the Hang Seng Composite Index and the Hang Seng Tech Index, enhancing its visibility and investment appeal in the Hong Kong market [3] - The company is recognized as a rare AI-related stock in the Hong Kong market, with both configuration value and risk appetite on the rise [3] - The stock's inclusion in the indices is expected to attract passive fund inflows, positively impacting its stock performance [3]