德赛西威2026年上半年电话会议要点：记忆成本传导，海外成增长驱动

passthrough; overseas the growth driverReiterateRating:BUYIPO:118.00CNYPrice:84.69CNY 1H26ADbusinessweak;2026newprojecthighlights YoY while its GPM declined 5.3ppt YoY to14.5% -management attributed this to (1)some memory cost passthrough contracts were signed in July/August; (2) sensors still in a ramp-up stage with low margin; (3) contract manufacturing of AD DCU featuring lowmargin. On new product launches, Desay highlighted its (1) fifth-generation smart Alcockpit platform,built on Qualcomm's 8797 chip,reached mass production with Li Auto;(2) smart cockpit-driving integration DCU based on Qualcomm's 8775 chip, enteredmass production with Chery; (3) Desay's self-developed highway NOA algorithm waslaunched; (4) L3/L4 DCU for PV and robovan to be mass produced in 2H26.Spotlights in robotic DCU, robovan and overseasDesay mentioned its robotics DCUs are supplied to majority of humanoid robot OEMs in de Valores Mobiliarios; in Mexico by Morgan Stanley Mexic China.Meanwhile,Desay's robovan fleet size reached200units as of Aug2026and is expected to reach2000 units by end-2026.Moving on to overseas,management expectsoverseas business to generate RMB20bn+ revenue in 2030, implying a CAGR of c.50% in2025-30E.Overseas projects on hand reached nearly RMB20bn by mid-2026, accountingfor 27% of Desay's projects on hand. Major mass-production programs are expected tobegin from 2028. In terms of product mix, overseas orders are mainly driven by displays,sensors and intelligent cockpit-driving integration products. Regionally, Europe offersthe biggest opportunities, while Southeast Asia is expected to be a fast-growing market.3Q26 at a sweet spot; lift net income estimate; Buy Merill Lynch (Hong Kong)joey.z.yang@bofa.comMing Hsun Lee, CFA >>Research Analyst Merrill Lynch (Hong Kong)No,INHO000Oi05);StockBroker(SEBIStockBrokerRegistration NResearch Analyst Lookingat3Q26,management seesstrongADDCUproduction in JulyandAugust,andhave signed contracts for memory cost recovery with auto OEMs.Factoring in the 2Q26 results and latest guidance, we lift 2026/27/28E net income by 5%/7%/10%.Our new P0isRMB118 (was RMB122), based ona target PERof 23x (was25x,thelatest 1SD belowhistorical average) on 2H26-1H27E EPS.We reiterate Buy rating on Desay SV, given (1)domain controller remain the key growth engines, driven by broader adoption of cost-efficient AD solutions, Al cockpit DCUs,new businesses and overseas expansion.factors.Flxed Income Research analysts, strategists or economists’compensation is not inked to investment banking or capital markets transactions performed by Morgan Stanley or the2024A2025A2026E2027E2028E The Irmportant RegulatoryDisclosures on Subject Companies'appearanceofcreatingaconfictofinterest.InfomationonsecuritiepreparationofMorganStanleyResearchmayhaveinvestmentsins Merill Lynch (Singapore) >> Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analystWith the exception of information regardng Morgan Stanley, Morgan Stanley Research is based on public information. Morgan Stanley makes every effort to use reliable, comprehensve Refer to 'Other Important Disclosures for information on certain BofA Securities entities that takeresponsibility for the information herein in particular jurisdictions. BofA Securities does and seeks to do business with issuers covered in its researchreports. As a result, investors should be aware that the firm may have a conflict ofinterest that could affect the objectivity of this report. Investors should consider thisreportasonlyasinglefactorinmakingtheirinvestment decision.Refer to important disclosures on page 8 to 10. Analyst Certification on page 5.PriceObjective Basis/Risk on page 5.13010549 GPM: gross profit marginDCU: domain control unitAD: autonomous drivingPV: passenger vehicle iQprofile"Desay SV (A)Key Income Statement Data (Dec)2024A Auto Parts Huizhou Desay SV Automotive was founded in 1986 and engages in manufacturing, and distribution of automotiveelectronic products. Its main products include vehiclewhich contributed 63%/30%/7% of the company's totalsales in 2025. Desay SV also developed products inautonomous driving and auto connectivity. Desay SV waslisted on the Shenzhen Stock Exchange in 2017. We have Buy rating on Desay SV, given (1) domain controller remain the key growth engines, driven by broaderadoption of cost-efficient AD solutions , Al cockpit DCUs,(2)new businesses (humanoid robot domain controllers,unmanned logistics vehicle) and overseas expansionprovide upsideMorgan Stanley 1 REsExRcH Stock Data Price to Book Value2.9x Key Metrics We lift 2026/27/28E net income by 5%/7%/10% We expect 2026 earnings to grow16% YoY Desay SV (XGDFF) Our PO of RMB118 is based on 23x 2H26-1H27E EPS.We derive our target P/E of 23x, based on 1SD (standard deviation) lower than historical average PER since IPO. We higher than our expectation and it is able to secure the majority of high end ADASdomain controller ord