Lyon: Maintain the "outperform" rating for MINIEYE (02431) with a target price of 23 Hong Kong dollars. No power enhancement in the field of unmanned logistics.

Lyon issues a research report stating that it maintains a "better than market" rating for MINIEYE (02431), with a target price of HK$23, and remains confident in its strong revenue growth prospects. Considering MINIEYE's ability to develop L4 autonomous driving algorithms, along with its early advantage in serving internal combustion engine (ICE) vehicles and international markets, the company's intelligent driving and intelligent cockpit businesses are expected to continue to grow. Key points from Lyon are as follows: Steady growth in existing businesses; unmanned logistics vehicles becoming the second growth engine The bank expects that, with its early advantage in serving ICE vehicles and international markets, along with government policy stimuli, MINIEYE's existing intelligent driving and intelligent cockpit businesses will continue to experience strong growth. The bank believes that the new unmanned logistics vehicle business will become the second growth engine; MINIEYE's management has set a sales target of 10,000 unmanned driving trucks by 2026. Auto front-loading business empowers competitiveness of unmanned logistics vehicles MINIEYE has not chosen to directly compete with Robotaxi companies or advanced driver assistance system (ADAS) solution providers, but has instead opted for a differentiation strategy, targeting the niche market of unmanned driving trucks. During the industry's transition from rule-based algorithms to end-to-end models, the bank believes that MINIEYE, as a latecomer, can at least keep up with its peers in terms of product competitiveness, leveraging its L4 algorithm derived from unmanned driving buses, data from L2+ intelligent driving solutions, and experience in chassis control in the automotive industry. Commercial potential for unmanned logistics vehicles is expected to drive rapid penetration rate increase The bank believes that unmanned driving trucks are the best practice for L4 autonomous driving; their strong commercial features should drive a rapid increase in penetration rate (currently <2%). The bank expects the industry to recover from price competition by 2025, predicting no intense price competition in the short term, and MINIEYE should be able to stand out with its product capabilities.