HK Stock Market Move | PATEO (02889) rose nearly 7% to hit a new high. The company has advantages in Hongmeng ecosystem, Qualcomm's scarce positioning, and overseas breakthroughs.

PATEO (02889) rose nearly 7% during trading hours, hitting a high of 260 Hong Kong dollars, setting a new record for its listing. As of the time of writing, it has risen by 3.95% to 252.6 Hong Kong dollars, with a trading volume of 10.9985 million Hong Kong dollars. Huatai released a research report stating that PATEO is a leading Chinese intelligent cockpit solution provider with self-developed and mass-produced capabilities in software, hardware, and car networking cloud services. With the industry shifting from "hardware penetration" to "system capability competition" and an increase in the value of individual car units, the company is expected to achieve resonance in revenue growth and profit improvement with its early-mover advantages in high-end SoC platforms, scarce positioning in the HarmonyOS ecosystem, and breakthrough in overseas markets. EB SECURITIES previously pointed out that the company has close cooperation with top upstream and downstream companies such as Qualcomm and Huawei. By 2024, it is expected to rank third in the domestic cockpit domain control market share. The company has successfully entered the core supply chain systems of top new energy vehicle companies and is expected to expand its market share through technological and ecological advantages. Compared to mature automotive supply chain companies, the company has the advantage of integration of software and hardware, high revenue growth, and potential for a premium in PS valuation. Through international customers like Porsche, the company is expected to enter overseas OEM supply chains, with overseas revenue becoming a second growth curve. The company has a certain scarcity and premium space as an investment target.