PATEO (02889) receives follow-up research reports from two major securities firms: Guotai and Haitong have raised the target price to HK$333.14, while Guosheng maintains a "buy" rating.

After the first coverage, Guotai Haitong and Guosheng have once again released follow-up research reports on PATEO (02889) recently. The two institutions unanimously believe that the company's revenue in the first quarter of 2026 increased by more than 100% compared to the same period last year, exceeding expectations, and the high-end and globalization strategies have entered into a realization period. Guotai Haitong maintains a "hold" rating and raises the target price to HK$333.14; Guosheng maintains a "buy" rating. Q1 revenue increased significantly, profits improved significantly According to the company's voluntary announcement, in the first quarter of 2026, PATEO achieved a revenue growth of over 100% year-on-year, and the operating profit margin improved significantly. Guosheng pointed out in the research report that the high growth in Q1 revenue is mainly benefited from three aspects: the high-end strategy of cabin intelligence solutions has shown results, high-end solutions have shown strong growth; the contribution of overseas markets has increased, and the aftermarket intelligent cabin projects for international luxury brands have started global delivery; at the same time, AI software and cloud intelligent services have also brought new revenue increments. Guotai Haitong also emphasized that the company's high-end strategy has achieved significant results, with the continued increase in volume of the Snapdragon 8295 platform products in domestic OEMs and deepening cooperation with the Kirin 9610A platform, becoming the core DRIVE of the revenue doubling growth. The launch of the Hongmeng Intelligent Driving new car is imminent, and the high-end cabin sees a "rise in quantity and price" Both institutions are optimistic about PATEO's positioning in the high-end intelligent cabin field. Guotai Haitong specifically pointed out in the research report that with the mass production of the Qualcomm 8397/8797 platform and the launch of the Hongmeng Intelligent Driving new car, the company will fully enjoy the industry dividend of the "rise in quantity and price" of high-end intelligent cabins. Guosheng also believes that the penetration rate of AI large models in the cabin side will continue to increase, and the company is expected to continue to benefit from this trend. Acceleration of global layout, enhancement of localization operation capabilities in Europe Regarding overseas business, both securities firms are concerned about the company's phased breakthroughs. Guotai Haitong pointed out that the aftermarket intelligent cabin project for international luxury brands has passed acceptance and started global delivery; another front-loading project for a luxury brand is also close to mass production. The company appointed Dr. Stefan Ortmanns to be in charge of European business, and strategic cooperation with the OMES Group and Horizon Reach has been reached to jointly expand SDV domain control and the globalization output of the "Chinese solution". Guosheng added that the company has officially appointed Dr. Stefan Ortmanns, who has over 20 years of industry experience, as the head of European business, to comprehensively coordinate the strategic layout and business expansion in the European market, and enhance local operation capabilities. Layout around physical AI and computational power fee, opening up space for business model upgrade In terms of AI ecology, Guotai Haitong emphasized that the company adheres to the strategy of "integrated software and hardware core cloud," focusing on the development of NVIDIA accelerated computing chips for large models at the vehicle end, actively developing AI Box, and promoting deployment at the vehicle end. Of particular note is that the company is actively exploring innovative business models such as computational power fees and car-mounted Tokens billing, and is expected to transition from one-time hardware sales to continuous service payment. Guosheng further pointed out that the company has reached a series of deep cooperation with a leading OEM new energy vehicle company and NVIDIA to promote the AI box solution. The company is also laying out in the frontier areas such as physical AI, AI intelligent bodies, and exploring innovative business models such as computational power fees and car-mounted Tokens billing, opening up space for future growth. It is worth noting that both institutions' research reports were issued for the second time after their initial coverage, demonstrating continued tracking of and confidence in PATEO's fundamentals. With the triple resonance of high-end, globalization, and AI commercialization, PATEO is accelerating towards becoming a core provider and ecosystem builder of "integrated automotive and mobile terminal solutions with AI technology at its core."