CMSC: The era of intelligent driving for all is coming. Seize the turning point of the automotive intelligence industry chain soaring.

CMSC released a research report stating that BYD COMPANY (01211) held a smart strategy release conference, with comprehensive progress in intelligent driving exceeding expectations. The "God's Eye" technology matrix covers vehicles in all price ranges, and navigation support will be available for urban memory before the end of the year. Large models, sensors, intelligent cabins, chips, and domain control configurations will undergo a comprehensive upgrade. CMSC is optimistic about the smart driving revolution led by BYD, likening it to the rapid development of smartphones in 2010, with the potential for high-level intelligent driving to enter a period of rapid development by 2025. Event: BYD Company Limited held a smart strategy release conference at its headquarters in Shenzhen on February 10, 2025, heralding the era of smart driving for all. The company introduced the "God's Eye" technology matrix and announced that all models will be equipped with advanced intelligent driving. The first batch of 21 models will be launched, covering price ranges from 200,000 to below 100,000, helping advanced intelligent driving penetrate the market down to the lowest level of 70,000. Key points from CMSC include: BYD Company Limited announced that all models will be equipped with advanced intelligent driving, surpassing expectations in terms of popularity. BYD Company Limited announced at the conference that advanced intelligent driving will be standard on models priced above 100,000, and most models priced below 100,000 will be equipped with it. The slower adoption on models priced below 100,000 is mainly due to supply shortages, but it is expected to become more widespread in the future, exceeding previous expectations for the pace of adoption of intelligent driving. The first batch of 21 models will be equipped with end-to-end large models, 5mm wave radar, and 12 cameras, leading the industry in terms of configuration. Wang Chuanfu stated: "In 2025, when buying a car, smart driving will be essential. In the next 2-3 years, smart driving will become indispensable. We believe that 2025 will be the 'iPhone 4 moment' of intelligent driving, likening it to the rapid development of smartphones in 2010, with the potential for high-level intelligent driving to enter a period of rapid development by 2025." Introducing the self-developed "God's Eye" technology matrix, covering vehicles in all price ranges. BYD Company Limited's self-developed advanced intelligent driving system, "God's Eye", is divided into three levels A/B/C, covering vehicles in all price ranges. 1) God's Eye A - Advanced Intelligent Driving Three-Laser Edition, primarily used by prestigious brands; 2) God's Eye B - Advanced Intelligent Driving Laser Edition, primarily used by brands like Tengshi and BYD Company Limited, 3) God's Eye C: Advanced Intelligent Driving Three-Eye Edition, primarily used by BYD Company Limited brands. According to Wang Chuanfu, BYD Company Limited's God's Eye advanced intelligent driving achieves full-speed takeovers, and drives in urban areas like experienced drivers, positioning their intelligent driving capabilities at the forefront of the industry. God's Eye C will support urban memory navigation functions before the end of the year, and large models, sensors, intelligent cabins, chips, and domain control configurations will undergo a comprehensive upgrade. The cost-effective God's Eye C is the key to achieving smart driving for all. Future models supporting high-speed navigation with God's Eye C will also support urban memory navigation functions, with plans for OTA updates by the end of the year. Taking God's Eye C as an example, large models, sensors, intelligent cabins, chips, and domain control configurations will undergo a comprehensive upgrade: 1) Large models: Use Deepseek to quickly enhance the AI capabilities of the vehicle and cloud, leveraging Strong Knowledge Distillation techniques to provide users with more accurate personalized services. 2) Sensors: Globally pioneering "Forward Three-Eye" (all 8M pixels), equipped with 12 cameras + 5mm wave radar + 12 ultrasonic radars, a significant increase in sensor numbers; furthermore, more advanced A/B intelligent driving systems will be equipped with 1-3 laser radars. 3) Chips and domain control: The upgraded Delink100 processing power doubles, the DM and e-platform will be upgraded with the Xuanji architecture, equipped with a central brain, two ends (cloud AI and vehicle AI), three networks (vehicle Internet + 5G network + satellite network), four chains (sensing chain + control chain + data chain + mechanical chain). 4) Intelligent cabin: Standard LCD instrument panel, central screen upgraded from 10 inches to 12.8 inches, standard touch-sensitive steering wheel, dedicated smart driving paddles, etc. Investment recommendation: Focus on investment opportunities in the BYD Company Limited intelligent driving industry chain. 1) Domain control: BYD ELECTRONIC (00285), etc; 2) Intelligent driving chips: HORIZONROBOT-W (09660), BLACK SESAME (02533), etc; 3) Sensors Cameras: SUNNY OPTICAL (02382), DongGuan YuTong Optical Technology (300790.SZ), LianChuang Electronic Technology (002036.SZ); Will Semiconductor (603501.SH), Smartsens Technology (688213.SH); China Wafer Level CSP (603005.SH); Zhejiang Lante Optics (688127.SH); Laser radar: ROBOSENSE (02498), Hesai Group Sponsored ADR (HSAI.US); COWELL (01415), etc; 4) Connectivity Connectors and wire harnesses: Electric Connector Technology (300679.SZ), Luxshare Precision Industry (002475.SZ); Connection and analog chips: Motorcomm Electronic Technology (688515.SH), Lontium Semiconductor Corporation (688486.SH), Suzhou Novosense Microelectronics (688052.SH);G communication module: MeiG Smart Technology (002881.SZ);PCB: Shenzhen Kinwong Electronic (603228.SH), Victory Giant Technology (300476.SZ), Suntak Technology (002815.SZ), Ji'an Mankun Technology (301132.SZ), etc; 5) Intelligent cockpit AR-HUD: Zhejiang Crystal-optech (002273.SZ), Foryou Corporation (002906.SZ); Intelligent transmission: Shenzhen Zhaowei Machinery & Electronics (003021.SZ); Acoustics: Suzhou Sonavox Electronics Co., Ltd. (688533.SH), AAC TECH (02018), etc; 6) Intelligent chassis: BYD ELECTRONIC (00285), etc. Risk warning: Intensified industry competition risk; Risk of demand falling short of expectations; Risk of technological development falling short of expectations; Risk of macroeconomic fluctuations; Political risk of GEO Group Inc; Risk of fluctuating raw material prices.