EB SECURITIES maintains a "buy" rating on PATEO (02889): High growth in 2025 performance realizes the globalization of AI cockpit leader.

On March 31, EB SECURITIES released the latest research report, maintaining a "buy" rating on PATEO (02889). This is a reaffirmation based on the company's latest operational progress and industry trends since its initial coverage and "buy" rating in December 2025. In the initial coverage report, EB SECURITIES emphasized the rarity of PATEO as a leading supplier of intelligent cockpit solutions in China, pointing out that the company is one of the few enterprises with integrated software and hardware capabilities, experience in deploying large-scale AI models on the edge, and the ability to deliver high-end computing power platforms. Cockpit business focuses on high-end, driving core growth The latest data shows that the company's core business in the intelligent cockpit domain controller segment performed particularly well in 2025, with annual revenue reaching RMB 3.023 billion, a year-on-year increase of 54.3%, accounting for 86.1% of the company's total revenue and becoming the absolute engine driving overall growth. This strong growth confirms the judgment made in the initial coverage. The company is steadfastly advancing its high-end strategy, focusing on the three core platforms of Qualcomm Snapdragon 8295/8397 and Huawei Kirin 9610A. They have become the only supplier to achieve scale production and delivery on the two major mainstream AI cockpit computing platforms of Qualcomm and Huawei. Among them, the 8295 platform products are steadily increasing in volume, and the 8397 platform products have also been designated by leading domestic OEMs and new energy vehicle companies, laying a solid foundation for future growth. Accelerating global layout The company's globalization strategy has also made substantial breakthroughs. They have deepened cooperation with a European luxury automobile OEM, and the related intelligent cockpit products will be delivered in 2026. Another partnership with an internationally renowned OEM is also progressing smoothly, marking the company's successful entry into the international high-end supply chain system and turning the expectation raised in the initial coverage of "overseas income is expected to become the second growth curve" into reality. Maintaining a "buy" rating The EB SECURITIES research report believes that PATEO has the ability to provide highly customized software and hardware combined with a full-stack intelligent cockpit solution. The subsequent AI cockpit solution per vehicle value is expected to continue to rise, combined with the continuous increase in AI intelligent cockpit penetration rate, driving high-speed growth in the company's core business income. Therefore, EB SECURITIES released a "maintain buy" rating just three months after the initial coverage, demonstrating a high level of confidence in its development prospects.