在利润压力下实现稳健的1H25增长；保持正面长期预期

margin pressure; Maintain +velong-term outlook Robust 1H25 growth amid margin pressure;Maintain +ve long-term outlook Black Sesame reported 1H25 results. Revenue was RMB253mn, up 40% YoY,on robust demand for its assisted driving solutions, which grew 42% YoY. GPMwas 24.8%, compared with 50%/35.6% in 1H/2H24, reflecting an unfavorableproduct mix and upfront investmentsin new business exploration. The Companyrecorded an IFRS net loss of RMB762mn. On a non-IFRS basis, net lossnarrowed to RMB549mn from RMB602mn/RMB702mn in 1H/2H24, driven bycost control in G&A (-7% YoY) and improved R&D efficiency (-10% YoY).Looking forward, we expect Black Sesame’s revenue to grow by 71%/59% in2025/26E, supported by rising adoption of driving assistance technologies andenhanced chip performance. As the ADAS/AD industry is still in an early stage, Target PriceHK$28.00PreviousTPHK$28.20Up/Downside52.2%Current PriceHK$18.40 China Semiconductors Lily YANG, Ph.D(852) 3916 3716lilyyang@cmbi.com.hk Kevin ZHANG(852) 3761 8727kevinzhang@cmbi.com.hk SoC-based solutionsto remain the key growth driver.Driving assistanceproducts and solutions (94% oftotal sales in 1H25) revenue grew 42% YoYto RMB237mn, led bysalesvolumeramp-up of A1000 SoCs (160k unitsin1H25 per our estimate vs. 310k in 2024). We project SoC-based revenue togrowat 104%/62%YoY in 2025/26E,supported by volume growth(96%/63%YoY): upcoming volume production of C1200 for cross-domain Jiahao Jiang(852) 39163739JiangJiahao@cmbi.com.hk Stock Data Marginunder pressure in 1H25; recovery expected in 2H.GPM fordriving assistance products andsolutions declined to 20.9% in 1H25 (vs.47.2% in 1H24), due to a higher share of SoC sales and increased costsrelated to new robotics and edge-AI investments. The Intelligent Imagingsegmentmaintained a high GPM of 82.4% (vs. 86.6% in 1H24), thoughcontribution was small. We expect a gradual recovery in 2H25, supported by Robotics is set to become a second growthengine.The company hassecured partnerships for humanoid robots using A2000 (perception) chipsand C1200 (motion control) chips.Mgmt. projects robotics revenue to reachRMB10mn in 2025E, with a potential 5-10x YoY growth in 2026E, leveraging Maintain BUY, with TPchanged toHK$28, based on22.5x 2030E P/E(vs. prior 18x),witha25% discountappliedto sector leader HorizonRobotics.Higher valuation multiple reflects Black Sesame's diversificationinto high-growth robotic segment and meaningful overseas order wins thatvalidate its competitive edge and global scalability. Potential risks include: 1) Source: FactSet Disclosures& Disclaimers Analyst Certification The research analyst who isprimary responsible for the content of this research report, in whole or in part, certifies that with respect to the securities or issuerthat the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to thedate of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3)serve as an officer of any of the HongKong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies covered in this report.CMBIGM or its affiliate(s) have investment banking relationship with the issuers covered in this report in preceding 12 months. Important Disclosures There are risks involved in transacting in any securities. The information contained in this report may not be suitable forthe purposes of all investors.CMBIGMdoes not provide individually tailored investment advice. This report has been prepared without regard to the individual investment objectives, financial positionor special requirements. Past performance has no indication of future performance, and actual events may differ materially from that which is contained in thereport.The value of, and returns from, any investments are uncertain and are not guaranteed and may fluctuate as a result of their dependence on the This report or any information contained herein, have been prepared by theCMBIGM, solely forthe purpose of supplying information to the clients ofCMBIGMor its affiliate(s) to whom it is distributed. This report is not and should not be construed as an offer or solicitation tobuy or sell any security or any interest insecurities or enter into any transaction.NeitherCMBIGMnor any of its affiliates, shareholders, agents, consultants, directors, officers or employees shall be CMBIGMhas