HK Stock Market Move | BLACK SESAME (02533) surged over 10% in the morning, A1000 chip assists Geely in developing the "Qianli Haohan" intelligent driving system. The company expects to achieve profit turnaround in 2024.

BLACK SESAME (02533) rose more than 10% in the morning. By midday closing, it rose by 10.92% to 22.85 Hong Kong dollars with a trading volume of 4.12 billion Hong Kong dollars. In terms of news, according to Securities Times, on March 3, GEELY AUTO released the "Qianli Haohan" advanced intelligent driving system. Insiders revealed that the vehicle-grade intelligent automotive computing chip and solution provider BLACK SESAME's Huashan A1000 solution assisted in the Qianli Haohan H1. The intelligent driving system is equipped with two BLACK SESAME Huashan chip A1000 as standard. In addition, BLACK SESAME recently released positive earnings, expecting revenue of 450 million to 500 million yuan in 2024, a year-on-year increase of 44% to 60%; and net profit in 2024 is expected to be not less than 100 million yuan, achieving a turnaround from a loss of 4.855 billion yuan in 2023 to a profit. Zhongtai pointed out that considering the company's A1000 and other chips have achieved mass production and have multiple designated cooperation models, with a first-mover advantage and smart driving trend, launching the first domestic cross-domain computing chip C1200, the prospects for the chip business are promising; and the company has self-developed IP cores, tool chains, and other complete ecosystem building, with advantages in independence and adaptability. The company is currently in a period of high investment and rapid growth, which can provide a certain valuation premium. Considering the progress of volume loading and industry trends, the company's revenue is expected to be 474/776/1373 million yuan in 2024-2026.