Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 117.17 HKD per share based on a projected PS ratio of 11 times for 2024 [150][164]. Core Insights - The company is positioned as a leading player in the autonomous driving sector, with a market share of 26.2% in 2022 and a focus on full-stack self-research capabilities for autonomous driving solutions [161][164]. - The company has established a diverse customer base, having secured letters of intent from 16 well-known OEMs, including Geely, Great Wall, and Chery [125][161]. - The report highlights the company's strong R&D capabilities, with a significant increase in R&D investment, which reached 1.04 billion CNY in 2023H1, reflecting a year-on-year growth of 123.97% [110][111]. Summary by Sections 1. Industry Overview - The autonomous driving industry is rapidly evolving, driven by technological advancements and decreasing hardware costs, making it a core competitive advantage for OEMs [174][175]. - The penetration rate of mainstream intelligent driving functions is steadily increasing, with significant growth potential for higher-level autonomous driving features [187]. 2. Autonomous Driving Domain Controller - The company has developed a comprehensive range of autonomous driving solutions, including L2 to L2++ level products, with plans to launch L3 solutions [164][165]. - The market for intelligent driving domain controllers is expected to grow significantly, with a projected market size of 48 billion CNY by 2025, reflecting a CAGR of 109.9% from 2021 to 2025 [60]. 3. Financial Performance and Growth Potential - The company has experienced rapid revenue growth, with a CAGR of approximately 425.59% from 2020 to 2022, and expects to continue this trend with projected revenues of 1.35 billion CNY in 2023 [100][140]. - The gross margin is expected to improve as higher-margin products are launched, with forecasts indicating a gross margin of 20.23% by 2025 [140]. 4. R&D and Market Expansion - The company emphasizes its R&D strength, with a focus on developing proprietary algorithms and software solutions that enhance product adaptability and efficiency [110][125]. - The company is actively expanding its international presence, having established a subsidiary in Germany to support overseas market development [128][136]. 5. Valuation and Investment Recommendation - The report compares the company's valuation with peers like Mobileye and Luminar, indicating that the company is undervalued relative to its growth potential [145][150]. - The investment recommendation is based on the company's strong product pipeline, expanding customer base, and the anticipated profitability turning point in the near future [150][164].
港股智能驾驶第一股，利润爆发在即