Zhītōng Cáijīng APP learned that Soochow Securities released a research report stating that the second half of 2023 to 2024 is an important turning point for investment in automotive intelligence. In 2024 H2, the valuation-driven stage of investment in automotive intelligence is still significant, and progress in AI development by US tech giants and major events in the intelligence progress of Tesla (TSLA.US)/Huawei/Xpeng (09868) are core market catalysts, with an L3 intelligence penetration rate as the core validation data.
Soochow Securities believes:
How to grasp the investment rhythm of automotive intelligence?
The second half of 2023 to 2024 is an important turning point for investment in automotive intelligence:
1) Intelligence is gradually becoming the protagonist in the automotive industry.
2) Automotive intelligence or AI may become a dark horse in the sector. That is, grasping the investment rhythm of automotive intelligence requires thinking outside the box of the automotive industry and understanding it from a broader AI perspective. In 2024 H2, the valuation-driven stage of investment in automotive intelligence is still significant, and progress in AI development by US tech giants and major events in the intelligence progress of Tesla (TSLA.US)/Huawei/Xpeng (09868) are core market catalysts, with an L3 intelligence penetration rate as the core validation data.
How to allocate automotive intelligence in 2024 H2?
Optimize at the whole vehicle dimension: [Tesla/Huawei series (Chongqing Sokon Industry Group Stock (601127.SH) + Changan Automobile (000625.SZ) + BAIC Bluepark New Energy Technology (600733.SH) + Anhui Jianghuai Automobile Group Corp.,Ltd. (600418.SH))/Xpeng]
From 2024 H2 to 2026, the bank estimates that the domestic L3 intelligent penetration rate is expected to gradually surpass 30%, and intelligent experience-leading automakers (Tesla/Huawei series/Xpeng) are expected to significantly benefit, while the domestic automaker pattern will be further reshaped.
Optimize at the component level: [Domain controller (Huizhou Desay SV Automotive (002920.SZ) + ForYou Corporation (002906.SZ) + Ningbo Joyson Electronic Corp. (600699.SH) + Jingwei Hirun (688326.SH), etc.)] + [Line control chassis (Bethel Automotive Safety Systems (603596.SH) + Nexteer (01316), etc.)]. The improvement in domestic L3 intelligence penetration rate will directly drive the realization of the domain controller category, while the urgency of line control chassis technology to L4 is increasing.
Risk Warning: Global AI technology innovation is lower than expected; Tesla FSD entry into China progress is lower than expected; L3 intelligent penetration rate is lower than expected, etc.