Incident: On August 26, the company joined hands with Wuxi Kaiwu to build a supercomputing center and launch the first Omniverse project in the automotive industry. In the future, the company will jointly promote the localization and downstream introduction of Omniverse in China; on September 25, the company established a strategic partnership with Beijing Zhipu Huazhang Technology Co., Ltd. (“Zhi Spectrum”) to explore comprehensive solutions that drive digital and intelligent transformation of automotive vehicle R&D using large cognitive intelligence models to create an innovative ecosystem for cognitive big model applications in automotive vehicle R&D.
The company teamed up with Kaiwu in Wuxi to launch the first Omniverse project in the automotive industry. R&D design process: By optimizing concepts in Omniverse, designers can see every detail inside and outside the car from a broader and more diverse perspective. DRIVE Sim IX, built on Omniverse, allows designers to flexibly adjust the user experience of the cockpit in-vehicle display and combine it with the vehicle interior to ensure the harmony of appearance and feel. Teams around the world can quickly iterate through Omniverse's realistic physics-based real-time rendering; manufacturing process: Automobile production is a huge project requiring thousands of components and a large number of people to work together. Through Omniverse, automakers can design, develop and operate complex, AI-enabled virtual environments — physics-based, time-accurate digital twins for factories and warehouses. These virtual copies facilitate real-time collaboration between teams and improve operational efficiency through predictive analysis and process automation. Currently, both BMW and Mercedes-Benz are early users of this digital twin solution; autonomous driving: Omniverse provides a complete tool chain 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 toolchain, enabling developers to simulate operations at the component level or the entire system level. With DRIVE Sim, developers can repeatedly simulate conventional driving scenarios and situations that are too dangerous or rare in the real world. Omniverse's generative artificial intelligence can recreate real sensor data into reactive simulation scenarios. The company joined hands with Wuxi Kaiwu to jointly launch Omniverse's first project in the automotive industry, making it possible for the cooperative project to obtain NVIDIA's current and future computing power products and software and hardware products for the automotive industry, receive Nvidia's computing power support to build a smart car computing power base, and promote industrial optimization in the automotive design and downstream fields!
The “Smart Spectrum Clear Statement” model developed by Zhi Spectrum is one of the first 8 major models to be registered in China. The contents of this collaboration between Alter and Smart Spectrum include: building a software platform for cognitive intelligence large model application development; building a large database and industry knowledge base covering the entire life cycle of automobile R&D from user experience, styling design, engineering design, software development to performance simulation and trial testing; cooperating to promote large models to generate value in autonomous driving development, cockpit intelligence, human-vehicle sensing interconnection, enterprise digitalization, and automotive aftermarket; and jointly exploring the integration of big models and AIGC to assist automobile development in creative design, simulation, labeling, and interaction in the automotive industry; Value, jointly create ecological cooperation, empower ecological partners, and win with ecological partners.
We believe that the company previously announced that it was supported by NVIDIA's computing power to localize Omniverse development tools in China. Recently, it was announced that it will join hands with leading domestic big model company Zhipu Huazhuang and jointly build large-scale models in the vertical field of automobiles based on its strong automobile R&D database to further improve the closed loop of the company's AI to enable automobile research and development.
We are strongly optimistic that the company is deeply involved in the automotive field. It has left-handed computing power and right-handed models, and always serves OEMs to implement “new industrialization”. We expect the company's revenue for 2023-2025 to be 16.78, 24.53, and 3.461 billion yuan, respectively, and net profit to mother of 175 million yuan, 3.54 billion yuan, and 597 million yuan respectively. The current price corresponds to 25/15x in 24/25. The net profit CAGR for employee stock ownership assessments for 22-25 is as high as 70%, maintaining a “buy” rating.
Risk warning: market competition risk, technology leak risk, equity diversification risk, overseas merger and acquisition risk.