The Zhitong Finance App learned that CICC released a research report saying that the L2/L2+ intelligent driving rating penetration rate in February was 31.8%/8.1%, -2.4 pct/+1.0 pct compared to the previous month. The NOA function continued to accelerate penetration. In February, the high speed/urban NOA penetration rate was +2.3 pct/+0.6 pct month-on-month to 9.8%/3.4%. OEMs, represented by new forces, are speeding up the 100% high-speed NOA load rate and penetrating the main sales price segment of urban NOA to 250,000 yuan. Furthermore, under the current high penetration rate, smart cockpit hardware solutions are stabilizing, but with the next generation of high-performance cockpit SoCs, Qualcomm 8295, Huawei 9610A, etc. are expected to drive a new round of innovation and upgrading in in-car video and interaction methods. Currently, the three major racetracks of intelligent driving, smart cockpit, and intelligent chassis and architecture are undergoing positive changes in increasing the penetration rate of intelligent configurations and speeding up the boarding of cars by domestic suppliers. It is recommended to focus on investment opportunities in intelligent automobile racetracks.

The main views of CICC are as follows:

Intelligent driving: Multiple ADAS functions are being penetrated at an accelerated pace, and the domestic replacement process for core components continues to advance

In February, the L2/L2+ intelligent driving level penetration rate was 31.8%/8.1%, -2.4pct/+1.0pct month-on-month. The NOA function continued to accelerate penetration. In February, the high speed/urban NOA penetration rate was +2.3 pct/+0.6 pct month-on-month to 9.8%/3.4%. OEMs, represented by new forces, are speeding up the 100% high-speed NOA load rate and penetrating the main sales price segment of urban NOA to 250,000 yuan. Valet parking AVP increased with models such as the Questionnaire, and the penetration rate reached 0.4% in February. In February, the lidar penetration rate was 3.3%, +0.6pct month-on-month. Shipments declined with car sales; Smart Driving domain control penetration rate was +2.2pct month-on-month to 9.6%.

Smart cockpit: Experience upgrades drive steady improvement in “multi-screen”, HUD, and domain control

The penetration rate of the front passenger screen/rear LCD screen/streaming rearview mirror in February was 5.3%/2.4%/2.3%, respectively. In February, the standard HUD penetration rate was 12.1%, and the localization rate was 51.5%, +2.0pct compared to the previous month. In February, the smart cabin domain control penetration rate was +2.4pct month-on-month to 22.5%, maintaining the growth trend. CICC believes that under the current high penetration rate, smart cockpit hardware solutions are stabilizing, but with the next generation of high-performance cockpit SoCs, Qualcomm 8295, Huawei 9610A, etc. are expected to drive a new round of innovation and upgrading in in-car video and interaction methods.

Intelligent chassis and architecture: the development trend of wire-controlled chassis, central computing, and airborne exploration is clear

The trend of line control movement and wire control shift is obvious. In February, the penetration rate of the EHB one-box solution was +0.9pct to 24.0% month-on-month, and the localization rate reached 34.0%, which is a significant increase from 13.1% at the beginning of '23. In February, the vehicle body domain control penetration rate fluctuated in a narrow range, -0.3 pct to 11.9% month-on-month. Regional controllers represent the trend of central computing architectures. The penetration rate in February was 19.0%, up 2.2 pcts from month to month. Air suspensions and adjustable shock absorbers CDC/MRC added a new direction to the model, gradually falling to lower price models. The penetration rate in February was 2.3%/7.9%, respectively, +0.3 pct/+0.1 pct compared to the previous month. Among domestic air suspension manufacturers, Baolong has a leading share of 29.6%; adjustable shock absorbers still require further breakthroughs from domestic manufacturers.

Valuation and advice

It is recommended to focus on intelligent targets: 1) Domain Control: Koboda (603786.SH), Desai Xiwei (002920.SZ); 2) Chassis: Top Group (601689.SH), Nexteer (01316), Baolong Technology (603197.SH); 3) Cockpit: Shangsheng Electronics (), Huayang Group (002906.SZ); 4) Headlights: Xingyu (Dubai); 5) Sensors: Hexai Technology (HSAI.US), Huayi Technology (), etc.; 6 688533.SH 601799.SH 688071.SH ) Vehicle inspection: China Automobile Research (601965.SH); 7) Vehicle SoC: Horizon.

risks

Automobile production and sales fell short of expectations, the increase in intelligent penetration rate fell short of expectations, and domestic substitution fell short of expectations.