Event: On August 26, the company and Wuxi Kaigu jointly built a supercomputing center and launched the first Omniverse project in the automotive industry. In the future, they will jointly promote the localization and downstream introduction of Omniverse in China; on September 25, the company and Beijing Zhipu Huazhang Technology Co., Ltd. (“Zhipu” for short) established a strategic partnership to explore comprehensive solutions for applying cognitive intelligence models to drive the digital transformation of automotive R&D, and create an innovative ecosystem for cognitive intelligent model applications in automotive R&D.
The company joined hands with Wuxi Kaewu to launch the first Omniverse project in the automotive industry. R&D and design process: By optimizing concepts in the Omniverse, designers can see every detail inside and outside of the car from a wider and more diverse perspective. DRIVE Sim IX, built on Omniverse, allows designers to flexibly adjust the user experience of the cockpit on-board display and combine it with the vehicle's interior to ensure a harmonious look and feel. Teams around the world can rapidly iterate through Omniverse physics-based real-time realistic rendering; manufacturing process: Automobile production is a huge project that requires thousands of parts and a large number of people to work collaboratively. Through Omniverse, automakers can design, develop and operate complex, AI-enabled virtual environments for factories and warehouses — physics-based and time-accurate digital twins. These virtual copies facilitate real-time collaboration between teams and improve operational efficiency through predictive analysis and process automation. Currently, BMW and Mercedes-Benz are early users of this digital twin solution; Autonomous Driving Link: Omniverse can provide a complete toolchain for developing and validating autonomous driving and autonomous driving systems. NVIDIA DRIVE Sim is an end-to-end simulation platform built on the NVIDIA Omniverse to accelerate the development of autonomous vehicles. It is physics-based, time-accurate, and supports a complete development tool chain, enabling developers to simulate operations at the component level or the entire system level. With DRIVE Sim, developers can repeatedly simulate regular driving scenarios and situations that are too dangerous or rare in the real world. Omniverse's generative artificial intelligence can reconstruct real sensor data into a reactive simulation scenario. The company joined hands with Wuxi Kaewu to jointly launch Omniverse's first project in the automotive industry. It is most likely that the cooperative project will obtain NVIDIA's current and future computing power products as well as software and hardware products for the automotive industry, get support from Nvidia Computing Power to build a smart car computing base, and promote industrial optimization in the automotive design and downstream fields!
The “Zhipu Qingyan” model developed by Zhipu is one of the first eight models to be registered in China. The contents of this collaboration between Alter and SmartSpectrum include: building a software platform for cognitive intelligence application development; building a large industry database and industry knowledge base covering the entire life cycle of automotive R&D from user experience, styling design, engineering design, software development to performance simulation and trial testing; cooperating to promote the value of large models in autonomous driving development, cockpit intelligence, human-vehicle sensing interconnection, enterprise digitalization, and the automotive aftermarket; jointly exploring the fields of innovative design, simulation, labeling, and interaction in the automotive industry; Value, co-create ecological cooperation, empower ecological partners, and win a win-win situation with ecological partners.
We believe that the company has previously announced that it has been supported by NVIDIA computing power to implement the Omniverse development tool in China. Recently, it was announced that it will join hands with the leading domestic model company, Zhipu Huazhang, and build a large-scale model in the vertical field of automobiles based on its strong automobile R&D database to further improve the company's closed loop of AI to empower automobile R&D.
We are firmly optimistic that the company is deeply involved in the automotive field. It has left-handed computing power and right-handed models, and has always served OEMs in their “new industrialization.” We expect the company's revenue for 2023-2025 to be 1,678 million, 24.53 billion yuan, and 3.461 billion yuan respectively, and net profit attributable to parents of 1.75, 354 million yuan, and 597 million yuan respectively. The current price corresponds to 25/15x in 24/25. The net profit CAGR for the employee shareholding assessment for 22-25 will be as high as 70%, maintaining the “buy” rating.
Risk warning: risk of market competition, risk of technology leakage, risk of equity diversification, risk of overseas mergers and acquisitions.