UPP International: The importance of intelligent driving continues to be highlighted. Chinese laser radar manufacturers are ahead of their time.

Guosen International released a research report stating that as the new energy vehicle industry enters the second half, intelligent driving as a core application scenario has laid a solid foundation for the growth of upstream incremental components. As a high-precision, high-reliability sensor, lidar plays a key role in the automotive perception architecture. With Chinese manufacturers mass-producing and continuously exploring cost reduction technologies, the cost of automotive lidar is rapidly decreasing, making it possible to be considered by more automakers and installed on vehicles, thereby achieving a positive cycle and moving towards a trillion-dollar market space. Considering that the current progress of overseas lidar suppliers is not as expected, Chinese manufacturers are expected to fill the gap and further expand overseas markets. Guosen International's main points are as follows: As the wave of automobile intelligence advances, the importance of intelligent driving continues to be highlighted, and as the penetration rate of intelligent driving increases, the industry scale of lidar sensors grows. As a high-precision sensor, lidar can obtain precise distance and contour information of surrounding objects, playing a critical role in the perception layer of intelligent driving systems. 2022 is seen as the "year of lidar", as the deployment and shipments of automotive lidar continue to grow with the evolution of intelligent driving functions. According to Yole data, it is estimated that the compound growth rate of automotive lidar shipments from 2023 to 2029 will reach 55%. According to CIC calculations, the global lidar solution industry is expected to exceed one trillion yuan by 2030. Initial coverage of the lidar industry, giving a "buy" rating. Chinese lidar manufacturers are catching up in the automotive application market. On the one hand, Chinese manufacturers were the first to deploy and mass-produce in 2022, with overwhelming advantages in revenue and market share in 2023. Furthermore, overseas suppliers have lost more projects due to slow production, and Hesai and Robosense have secured nearly 80% of global projects, laying a solid foundation for the base of shipments in the next 2-3 years. On the other hand, the potential market size of the industry provides ample room for expansion for the two leading players, and both leading lidar manufacturers are currently in a good competitive position in the industry. Initial coverage of Hesai Group Sponsored ADR (HSAI.US) and Robosense (02498), both rated "buy". The era of the "thousand-dollar machine" is imminent, and increased production visibility will further enhance economies of scale, driving down costs and forming a flywheel effect. In the context of fierce competition in the Chinese automotive market, automakers are constantly seeking to reduce the cost of intelligent driving solutions, thereby enabling intelligent driving functions to penetrate into lower-priced vehicle models. As a high-priced hardware component, the rapid increase in volume by Chinese manufacturers has significantly lowered the average unit price in the industry, exceeding expectations. Meanwhile, Robosense and Hesai have both released cost-effective solutions in the $200 price range, with mass production set to begin as early as 1Q25, helping to alleviate cost pressures for automakers and positively impacting adoption rates, creating a positive cycle. L4 autonomous driving vehicles lead the way, with broader potential for Siasun Robot&Automation applications. Robotaxi serves as the "start point" for lidar deployments and the "transition point" for automotive applications and Siasun Robot&Automation. Currently, regulations on autonomous driving are gradually being implemented worldwide, laying the groundwork for further growth of unmanned driving vehicles. Additionally, as society undergoes deeper transformation into intelligence, lidar is expected to be deployed across various Siasun Robot&Automation applications, expanding the market size further. According to CIC calculations, global Siasun Robot&Automation lidar solution revenues in 2030 will reach 216.2 billion yuan, with a compound growth rate exceeding 50% from 2023-2030. Investment risks: Weak macroeconomic trends, lower-than-expected sales volume in the automotive market; slower-than-expected progress of automatic driving policy by governments; slower-than-expected evolution of industry technology routes and industrialization processes; slower-than-expected reduction in lidar costs; slower-than-expected progress of intelligent driving popularity among automakers, leading to unclear trends in accelerating the deployment of lidar in passenger vehicles; slower-than-expected growth in the demand for broad Siasun Robot&Automation applications.