Core Viewpoint - Youjia Innovation has launched its unmanned logistics brand "Xiaozhu Unmanned Vehicle," marking a significant advancement in autonomous driving technology from L1 to L4, aimed at creating more value in diverse and complex scenarios [1][2]. Group 1: Product Launch and Features - The Xiaozhu unmanned vehicle debuted two models, T5 and T8, with T5 offering a cargo space of 5.5m³, a maximum load of 1000kg, and a range of 180km, targeting express delivery and retail [1][2]. - The T8 model features an 8.5m³ cargo capacity, a maximum load of 1700kg, and a range of 240km, suitable for urban distribution and industrial logistics [2]. - Both models utilize a multi-sensor fusion approach, including 3 LiDARs and 11 cameras, providing a 360° view for enhanced safety and road condition recognition [2]. Group 2: Strategic Partnerships and Collaborations - The next generation of Xiaozhu unmanned vehicles will integrate advanced technologies from partners like Horizon Robotics, Suton Ju Chuang, and 4D Mapping, enhancing product capabilities [3]. - The stable supply chain and procurement needs of Youjia Innovation's front-end business help reduce the BOM costs of Xiaozhu unmanned vehicles, creating a cost advantage in the market [3]. Group 3: Market Deployment and Recognition - The company has initiated immediate delivery of the unmanned vehicles to partners, with key cities like Shenzhen, Chengdu, and Xi'an being the initial deployment areas [4]. - Youjia Innovation's L4 autonomous driving iRobo business has shown significant progress, achieving over 10 million in revenue within six months, and has successfully launched unmanned buses in multiple cities [5]. Group 4: Future Outlook and Market Position - The company aims to continue expanding its autonomous driving applications while maintaining a focus on deep collaboration with ecosystem partners to enhance the value of Xiaozhu unmanned vehicles [5]. - Recent positive developments have led to renewed confidence from the capital market, with Citic Lyon reaffirming a "outperform" rating for Youjia Innovation, setting a target price of 32 HKD [5].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 31.4, indicating a potential upside of 20% from the current price of HKD 26.3 [4][2]. Core Insights - The company, Youjia Innovation, is a pioneer in progressive autonomous driving technology in China, focusing on a gradual development strategy from basic ADAS functions to full-stack self-developed autonomous driving solutions ranging from L0 to L4 [1][11]. - Youjia aims to become a global leader in the autonomous driving intelligent solutions industry, leveraging its expertise in algorithm development, software engineering, and hardware design [2][11]. - The company has established a strong customer base, including major automotive manufacturers such as SAIC, Chery, Dongfeng, Geely, Changan, and BYD, and has achieved significant milestones in production and certification [1][12]. Summary by Sections Company Overview - Youjia Innovation, founded in 2014 and headquartered in Shenzhen, has set up data and research centers in multiple cities and is recognized as one of the few companies in China capable of full-stack self-developed autonomous driving solutions [1][11]. - The company has been awarded the "2023 Supplier Innovation Award" by ZF Group and is among the first to help vehicle manufacturers obtain EU DDAW certification for driver monitoring systems [1][11]. Business Lines - Youjia has strategically developed three main business lines: intelligent driving solutions, intelligent cockpit solutions, and vehicle-road collaboration [2][22]. - By the end of 2024, Youjia's intelligent driving solutions are expected to be in mass production for 67 models across 22 manufacturers, with sales exceeding 900,000 units [2][12]. Financial Projections - Revenue projections for Youjia indicate significant growth, with expected revenues of RMB 1.025 billion in 2025, RMB 1.501 billion in 2026, and RMB 2.095 billion in 2027, reflecting year-on-year growth rates of 56.6%, 46.4%, and 40.0% respectively [2][39]. - The company is projected to achieve a net profit of RMB 0.9 billion by 2027, marking a turnaround from previous losses [2][39]. Industry Context - The autonomous driving solutions market in China is expected to grow significantly, with a projected market size of RMB 4.312 trillion by 2028, driven by increasing consumer demand for intelligent features and stable automotive sales growth [42][50]. - The global market for intelligent driving solutions is also on the rise, with a forecasted growth from RMB 589.9 billion in 2023 to RMB 1.3303 trillion by 2028, indicating a compound annual growth rate of 17.7% [42][50].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 31.4, indicating a potential upside of 20% from the current price of HKD 26.3 [4]. Core Insights - The company, Youjia Innovation, is a pioneer in progressive autonomous driving technology in China, focusing on a gradual development strategy from basic ADAS functions to full-stack self-developed autonomous driving solutions ranging from L0 to L4 [1][2]. - Youjia aims to become a global leader in the autonomous driving intelligent solutions industry, leveraging its expertise in algorithm development, software engineering, and hardware design [2]. - The company has established a strong customer base, including major automotive manufacturers such as SAIC, Chery, Dongfeng, Geely, Changan, and BYD, and has achieved significant milestones in production and certification [1][12]. Summary by Sections Company Overview - Youjia Innovation, founded in 2014 and headquartered in Shenzhen, has set up data and research centers in multiple cities across China. The company has developed a comprehensive product matrix covering L0 to L4 autonomous driving solutions [1][11]. - In 2023, Youjia ranked fourth among emerging technology companies in China based on revenue from L0 to L2+ solutions [1][22]. Business Lines - The company has strategically developed three main business lines: intelligent driving solutions, intelligent cockpit solutions, and vehicle-road collaboration [2][22]. - By the end of 2024, Youjia's intelligent driving solutions are expected to be in mass production for 67 models across 22 automotive manufacturers, with sales exceeding 900,000 units [2][12]. Financial Projections - Revenue projections for Youjia from 2025 to 2027 are estimated at RMB 1.03 billion, RMB 1.5 billion, and RMB 2.1 billion, respectively, with year-on-year growth rates of 56.6%, 46.4%, and 40.0% [2][39]. - The company is expected to achieve a net profit of RMB 0.9 billion by 2027, indicating a turnaround from previous losses [2][39]. Industry Context - The autonomous driving solutions market in China is projected to grow significantly, with a market size of RMB 1.75 trillion in 2023, expected to reach RMB 4.31 trillion by 2028, reflecting a compound annual growth rate (CAGR) of 19.8% [42]. - The global market for intelligent driving solutions is also expanding, with a projected growth from RMB 589.9 billion in 2023 to RMB 1.33 trillion by 2028, at a CAGR of 17.7% [42].