Riding the In-Vehicle AI Wave, Maintain "Buy"

公司报告：博泰车联网(02889 HK) Company Report⚫Wemaintain"Buy" ratingwithTPatHK$207.9.We believetheCompanyremains in a fast-growing stage, underpinned by the accelerating in-vehicleAI wave. We forecast 2025-2028F revenue to grow at a CAGR of 37.9%, andexpect the Company to reach breakeven over the forecast period.OurtargetpriceHK$207.9implies5.0x 2026F P/S,and maintain "Buy" toreflectitsgreatopportunities in AIapplicationand cockpit-driving integration. ⚫Top line slightly missed;corenet losslargely inline.On 31 Mar. 2025,the Company disclosed its 2025 full-year results. Revenue grew strongly by37.3% YoY to RMB3.51 bn, though slightly below our expectations, driven bya significant increase in smart cockpit deliveries during the year. Smartcockpitdomain controller shipments reached 1.3mn units in 2025,representing a growth of over 40% YoY. Meanwhile, GPM improved by 0.6ppts to 12.4%, supported by the Company'shigh-end cockpit products. Corenet loss, excluding share-basedpaymentsand listing expenses, came in atRMB240 mn, largely in line with our expectations and representing a 31.9%narrowing compared to the prior year.We believe the Company is well ontrack to reach breakeven, as its business scale continues to expand. Share price股价:HK$120.500 Stock performance Equity Research Report告⚫Riding the in-vehicle AI wave.The smart cockpit industry is entering a new"AI-defined automobile"era.As an integrated software and hardwaresolutions provider, the Company continues to deepen its presence in thein-vehicle AI applications.In 2025,revenue from AI software andcloud-based intelligent services grew substantially to RMB95.1 mn. TheCompany's current product portfolio is primarilycenteredaround high-endchipsets, including the Qualcomm 8295, 8397 and Kirin 9610A, powering itssmartcockpit solutions.As more premium vehicle models integrate AIapplicationsinto their smart cockpits,we believe this will inject freshmomentum into the Company's growth. AutomobilesComponents证券研究报⚫Overseas expansion gains meaningful traction.In 2025, the Companyentered Porsche's supply chain, with collaboration expected to deepen in2026, including the delivery of AI-related smart cockpit products. In addition,the Company has established a partnership with Hyundai, covering its globalvehiclemodels,with the relevant vehicle models having completedqualification certifications in over 100 countries. Mass production is expectedto commence in 2027. Leveraging the experience gained from these projects,the Company is well-positioned to continue expanding its footprint amongglobal OEMs. ⚫Risks:1)uncertainty in maintaining long-term cooperation with existingcustomers; 2) risks associated with overseas expansion execution; and 3)margin pressure from accelerating industry consolidation.[T CompanyRating Definition The Benchmark:Hong Kong Hang Seng Index Time Horizon: 6 to 18 months The Benchmark:Hong Kong Hang Seng Index Time Horizon: 6 to 18 months (1)The Analysts and their associates do not serve as an officer of the issuer mentioned in this Research Report.(2)The Analysts and their associates do not have any financial interests in relation to the issuer mentioned in this Research Report.(3)Guotai Junan International Holdings Limited and/or its subsidiaries do not hold equal to or more than 1% of the market capitalization ofthe issuer mentioned in this Research Report.(4)Guotai Junan and its group companies have had investment banking relationships with the issuer mentioned in this Research Reportwithin the preceding 12 months.(5)Guotai Junan and its group companies are not making a market in the securities in respect of the issuer mentioned in this ResearchReport.(6)Guotai Junan International Holdings Limited and/or its subsidiarieshave not employed an individual serving as an officer of the issuermentioned in this Research Report. There is no officer of the issuer mentioned in this Research Report associated withGuotai JunanInternational Holdings Limited and/or its subsidiaries. DISCLAIMER This Research Report does not constitute an invitation or offer to acquire, purchase or subscribe for securities by GuotaiJunan Securities(Hong Kong) Limited("GuotaiJunan"). GuotaiJunan and its group companies may do business that relates to companies covered in researchreports, including investment banking, investment services, etc.(for example, the placing agent, lead manager, sponsor, underwriter or investproprietarily). Any opinions expressed in this report may differ or be contrary to opinions or investment strategies expressed orally or in written form by salespersons, dealers and other professional executives of GuotaiJunan group of companies. Any opinions expressed in this report may differ or becontrary to opinions or investment decisions made by the asset management and investment banking groups of GuotaiJunan. Though best effort has been made to ensure the accuracy of the information and data contained in this Research Report, GuotaiJunan doesnot guarantee