Founder: The era of smart driving and equal rights is beginning. The core industrial chain boom is approaching.

Founder released a research report stating that the advanced intelligent driving function of Tianjin's Eye has been released, empowering most mainstream market vehicle models priced below 100,000 yuan and in the 100,000-200,000 yuan range. The era of intelligent driving empowerment is accelerating. It is recommended to focus on the performance of intelligent applications in the era of intelligent driving empowerment, and pay attention to the opportunities for the intelligent driving layout from 0 to 1 in the new product cycle of BYD Company Limited in terms of vehicle and perception, decision-making, and execution levels, with a focus on leading companies in the automotive intelligent driving sector and intelligent component targets. Key points from Founder's research report are as follows: Advanced intelligent driving functions are gradually becoming more widely available, and the era of intelligent driving empowerment is accelerating. On February 10, 2025, an intelligent strategy conference was held, announcing that the advanced intelligent driving function of Tianjin's Eye will empower most mainstream market vehicle models priced below 100,000 yuan and in the 100,000-200,000 yuan range. With the intensifying market competition, advanced intelligent driving systems are expected to be installed in vehicles priced around 100,000 yuan, and all car companies are accelerating their layout in advanced intelligent driving. The various sectors of the industry chain will usher in a new round of development opportunities. Analysis of the space and market shares of various sectors of intelligent driving A review was conducted of the market space and concentration of various components in the automatic driving sector. In terms of market space: based on a penetration rate of 50% for L2/L2+, the market includes fields over 50 billion for air suspension, 300-500 billion for cameras, intelligent driving domain controllers, line control braking, and line control steering, and 100-300 billion for LiDAR, millimeter wave radar, and high-speed connectors; in terms of market concentration: LiDAR, air suspension, and line control braking have high market share concentration, with a CR3 of over 80%; millimeter wave radar, ultrasonic radar, intelligent driving domain controllers, and domain control chips have relatively high concentration, with CR3 shares between 50% and 80%; the market share concentration of front-facing cameras is slightly lower, with a CR3 share below 40%. Analysis of the industrial chain of BYD Company Limited According to calculations, BYD Company Limited is expected to achieve sales of over 5 million units in China in 2025, with the Dipilot100/Dipilot300 expected to reach 2.51/0.7 million units in 25 years. A review was conducted on the industrial chain supporting BYD Company Limited in Q1-Q3 24, with a configuration rate of less than 1% for LiDAR, mainly supplied by RoboSense; a penetration rate of around 40% for front-facing ADAS, with BYD Company Limited/NavInfo Co., Ltd. as the main suppliers of front-facing cameras, and Horizon J2/J3 visual core chips with configuration rates of 71%/19%; a penetration rate of around 30% for millimeter wave front radar, with JianTai Technology/BYD Company Limited/Bosch configuration rates of 68.3%/22.4%/7.4% in Q3 24; a penetration rate of around 3% for intelligent driving domain controllers, with major Tier1 suppliers including BYD Company Limited/Hongjing Intelligent Driving/DJI, with configuration rates of 43.1%/27.9%/19.8%; intelligent driving chips mainly use Horizon J3/J5 NVIDIA Corporation Orin solutions, with configuration rates of 65%/24%/8%/3% for Horizon J3/NVIDIA Corporation OrinN/NVIDIA Corporation OrinX/Horizon J5; in terms of line control braking, the main suppliers are Bosch/Fudi Power, with each accounting for approximately 50% in Q3 24. In terms of line control steering, EPS is mainly supplied by BYD Company Limited/NEXTEER, with each accounting for approximately 35.0%/27.4%. The penetration rate of air suspension is relatively low, with a penetration rate of 0.3% in Q3 24, all configured in the Tengshi model in Q1-Q3 24. Investment recommendations: Focus on leading companies in the automotive intelligent driving sector and intelligent component targets It is recommended to focus on the performance of intelligent applications in the era of intelligent driving empowerment, and pay attention to the opportunities for the intelligent driving layout from 0 to 1 in the new product cycle of BYD Company Limited in terms of vehicle and perception, decision-making, and execution levels. For intelligent vehicle recommendations, focus on BYD COMPANY (01211), GEELY AUTO (00175), XPENG-W (09868), etc., for perception, focus on RoboSense (02498), Hesai Group Sponsored ADR (HSAI.US), LianChuang Electronic Technology (002036.SZ), DongGuan YuTong Optical Technology (300790.SZ), Electric Connector Technology (300679.SZ), etc.; for decision-making and execution, focus on BYD ELECTRONIC (00285), HORIZONROBOT-W (09660), BLACK SESAME (02533), etc. Risk warning: Intensified market competition, underperformance of intelligent driving, slower than expected vehicle iteration speed.