HK Stock Market Move | Smart driving concept stocks are rising, and Level 2 advanced driver assistance systems will face mandatory national standards. The automotive intelligence industry chain is expected to benefit.

The concept stocks of autonomous driving are rising. As of the time of publication, BLACK SESAME (02533) rose by 9.04% to 20.86 Hong Kong dollars; HORIZONROBOT-W (09660) rose by 7.18% to 11.19 Hong Kong dollars; ROBOSENSE (02498) rose by 6.33% to 45.26 Hong Kong dollars; MINIEYE (02431) rose by 5.9% to 27.64 Hong Kong dollars. On the news front, on September 17th, the Ministry of Industry and Information Technology publicly solicited opinions on the mandatory national standard "Safety Requirements for Intelligent Networked Vehicles Combination Driving Assistance Systems". Data shows that the penetration rate of new energy vehicle combination driving assistance technology (L2 level) has exceeded 50%, and it is expected that the installation rate of combination driving assistance systems will continue to rise. The person in charge of the Equipment Industry Department of the Ministry of Industry and Information Technology introduced that this standard fills the gap in the safety baseline of China's combination driving assistance system products, providing key technical basis for industry access, quality supervision, and post-event traceability, and helping to comprehensively improve product safety levels. CITIC Securities previously pointed out that the automotive intelligent industry chain is expected to benefit from the gradual improvement of industry regulation. It recommends the following investment themes: 1) main auto manufacturers leading in intelligent driving research and development; 2) head suppliers of LiDAR; 3) top companies in intelligent networked vehicle testing and simulation services; 4) other head component suppliers in intelligent driving. ABC Securities believes that the current year to next year is a window for the joint breakthrough of the maturity of high-end automotive intelligent driving technology, policies and regulations, user acceptance, and business models, and recommends paying attention to automotive intelligence.