I. Company introduction

The company is a provider of autonomous driving solutions in China, focusing on autonomous driving domain controllers. The company has commercialized L2 to L2+ autonomous driving solutions (L2+ is not an official classification under SAE (1) standards), and is developing L2 to L4 autonomous driving solutions for automakers (OEMs). As an automotive system integrator (Tier 1 supplier), the company provides OEMs with a variety of autonomous vehicle solutions and products for new energy vehicles (NEVs) and fuel vehicles (ICE).

The company has commercialized two autonomous driving domain controller product lines that support L2 to L2+ autonomous driving functions, covering a wide range of passenger vehicle price ranges and all driving scenarios, including highways, ring roads, complex urban roads, rural roads and parking lots. Based on sales revenue of autonomous driving domain controller solutions in 2022, and taking into account domain controllers developed by OEM, the company is the fourth largest autonomous driving domain controller provider in China, with a market share of 8.6%.

II. Subscription suggestions

The company's revenue increased significantly from 47.7 million yuan in 2020 to 178 million yuan in 2021, and further increased to 1,326 million yuan in 2022, with a compound annualized growth rate of 427.2%. The company's net profit for 2021, 2022, and 2023H1 was -464 million yuan, -342 million yuan, and -997.48 million yuan respectively, with year-on-year changes of -762.39%, 26.24%, and 66.80%.

Based on the IPO price, the company's market capitalization is HK$6.7 billion, corresponding to about 4.6 times PS in 2022. Taking into account the industry prospects of the autonomous driving industry and the scale of the company's revenue growth rate, careful subscription is recommended.