Dehydrated Research Report | BYD's Intelligent Strategy Accelerates, the Era of Smart Driving for All Begins
Recently, $BYD(002594.SZ)$BYD COMPANY(01211.HK) announced at the intelligent strategy launch conference that all models will be equipped with the "Eye of God" intelligent driving solution to promote the popularization of intelligent driving functions.
Core Points
Strong Data and R&D Strength Support Rapid Iteration of Intelligent Driving System
Data Foundation: BYD has data from over 4 million L2 and above level vehicles, as well as China's largest vehicle cloud database, providing strong support for large model training.
R&D Capability: A team of over 5,000 intelligent driving engineers and an annual investment of 100 billion in R&D help the "Eye of God" iterate rapidly.
Whole Vehicle Intelligence: The core parts are fully self-developed, breaking down barriers between systems, and strong vertical integration capabilities allow for rapid evolution of whole vehicle intelligence.
Intelligent Driving Functions Penetrate the Market Below 100,000 Yuan
Intelligent Driving System Configuration: The "Eye of God C" intelligent driving system released by BYD includes 12 cameras, 5 millimeter-wave radars, and 12 ultrasonic radars, enabling functions such as high-speed NOA and intelligent parking.
Market Coverage: Among the 21 models launched this time, except for some of the lowest configuration models, all are equipped with the "Eye of God C" intelligent driving system, while some high configuration models are equipped with the "Eye of God B" intelligent driving system (which has urban NOA functionality). The model with the lowest price equipped with "Eye of God C" is priced at only 78,800 yuan (the second lowest configuration model of the Seagull), achieving full coverage of high-speed NOA functionality in the market below 200,000 yuan.
Promoting the Increase of Intelligent Driving Penetration Rate in the Industry
Demonstration Effect: As a leader in the new energy vehicle sector, BYD's intelligent strategy has a significant impact on the industry. The push for intelligent driving functions to penetrate the market below 100,000 yuan will encourage other car manufacturers to follow suit, accelerating the popularization of intelligent driving functions.
Beneficiaries in the Industry Chain: Companies in the intelligent driving industry chain, such as vehicle-end intelligent driving chip manufacturers, camera/laser radar and other sensor manufacturers, and intelligent driving domain controller manufacturers will benefit.
Leading Intelligent Driving Companies Maintain Strong Advantages
Advanced Intelligent Driving Functions: Leading intelligent driving companies such as Huawei, Li Auto, and XPeng continue to lead in higher-level urban NOA functions, gradually achieving "parking space to parking space" functionality delivery
Future Outlook: By the end of 2025 or 2026, some scenarios may enter the pilot or commercial stage of autonomous driving.
Profit Forecast:
It is expected that the company will achieve a net profit attributable to shareholders of 38.615 billion / 48.011 billion / 57.084 billion yuan from 2024 to 2026. The corresponding PE ratios are 24.87 / 20.00 / 16.82 times, maintaining a "Buy" rating.
Investment Recommendations
Intelligent Driving Industry Chain: Recommend Baolong Technology (camera modules), Desay SV (domain controllers), Huayang Group, and suggest paying attention to Horizon Robotics (vehicle intelligent driving chips), $BYD ELECTRONIC(00285.HK), $SUNNY OPTICAL(02382.HK), Lianchuang Electronics, Hesai Technology, etc.
Complete Vehicle Enterprises: Recommend Seres (Huawei system), Li Auto, XPeng, Changan Automobile (Huawei system), BYD enhances competitiveness through intelligent driving features, recommend BYD, and suggest paying attention to Great Wall Motors, Geely Automobile, Xiaomi Group, and Leapmotor.
Risk Warning
The actual experience of BYD's intelligent driving features may not meet expectations;
The unit cost of vehicles equipped with intelligent driving features increases, leading to a decline in the profitability of car manufacturers;
Leading intelligent driving companies may not be able to maintain their competitive advantage in the long term, or the lead in intelligent driving may not translate into effective sales growth;
Sales of new models may not meet expectations; industry competition intensifies; the penetration rate of NOA may not meet expectations.
Summary
BYD, with its strong data and R&D capabilities, is rapidly iterating the "Eye of God" intelligent driving system and sinking it into the market below 100,000 yuan, accelerating the industry's intelligent driving penetration rate. Leading intelligent driving companies still maintain an advantage in high-level intelligent driving features, and the future pilot or commercial phase of autonomous driving is worth looking forward to.
Integration: Caitong + Ping An
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