Open Source Securities: Ask the M8/M9 to start pre-sale, and the new Huawei car cycle is coming strong

The Zhitong Finance App learned that Open Source Securities released a research report saying that the Huawei automobile business is showing a strong development trend with frequent new products, diverse cooperation models, and continuous technological breakthroughs. Pre-sale of new cars such as the Wenjie M8 and the new Wenjie M9 began, and models such as the Zunjie S800 and the Xinjie S9 extended range were unveiled, enriching the product matrix. In terms of cooperation models, Huawei empowers the intelligent transformation of car companies with models such as HI and smart selection, and the scope of cooperation continues to expand. At the same time, Huawei is making efforts in smart driving technology research and development, and is expected to launch an L3 architecture and actively expand the market. Recommended targets include BYD (002594.SZ,01211), SAIC Motor Group (600104.SH), and Changan (000625.SZ); beneficiaries include Cyrus (601127.SH), JAC (600418.SH), and BAIC Blue Valley (). 600733.SH

The main views of Open Source Securities are as follows:

Pre-sale of the Zunjie M8/new M9 begins, the Zunjie S800/Xinjie S9 extended range version is unveiled, and the Huawei series is in full bloom

On March 6, the pre-sale of the M8 began. The pre-sale price is 36.8-458,000 yuan. It is expected to be officially launched in April. The new car is positioned as an extended-range 5/6-seater SUV. It is only slightly smaller in size than the M9, and will be equipped with the same intelligent features such as Huawei's advanced smart driving as the M9, highlighting its potential to be a hit model, and will fill the price gap between the M7 and M9.

At the same time, pre-sale of the new Quanjie M9 has also started. The pre-sale price starts at 478,000 yuan, and it will be officially launched in March. The new M9 will be equipped with a full range engine, increasing engine power from 112 kW to 118 kW, improving energy conversion efficiency, while WLTC fuel consumption will be reduced from 0.88 L/100 km to 0.62 L/100 km, energy consumption will be significantly reduced, and the new M9 may be equipped with 4 lidars, laying a solid hardware foundation for gradually achieving L3 intelligent driving capabilities.

In addition, the Zunjie S800 has already been unveiled by the Ministry of Industry and Information Technology. It will be equipped with 4 lidars, and is also expected to achieve L3 smart driving capabilities, and the launch of the Xinjie S9 range extender version meets the needs of the high-end car market for range-enhancing power models. Including the Equation Leopard 8/Leopard 5 smart driving version, the Deep Blue S09/Avita 06 is expected to be launched in March/April.

Launching the “Parts, HI/HI Plus, Smart Selection” model, Huawei empowers car companies to achieve intelligent transformation

With years of technology accumulation in the ICT field and the accumulation of marketing and channels in the mobile phone C-end business, Huawei empowers the transformation of traditional OEMs with leading intelligent technology. Cooperation models include HI and smart selection models, etc., while the circle of cooperative friends gradually expanded from second-tier OEMs such as Celis and JAC to leading car companies such as Chery, BYD, and SAIC: (1) Under the smart selection model, the question has been quite successful. The bank believes that Huawei has the ability to gradually support the rest of the “world”.

Judging from the product plan, the SUV cooperation is currently quite successful, and Huawei is expected to gradually expand with other brands. For example, the intelligent world that introduced the R7 has performed well recently. At the same time, brands that were originally positioned as high-end are also expected to launch more aggressive models once their brand image is established. In terms of marketing and personnel investment, Huawei will focus on cooperative brands that are still growing, and gradually develop them into independent brands.

Furthermore, after the completion of early research and development of intelligent technology, etc., the demand for personnel required to adapt solutions to various brands will drop significantly, and Huawei is expected to continue strengthening the capacity of car BU; (2) Under HI and its upgrade model, Huawei leverages the advantages of intelligent technology, and at the same time gives car companies autonomy in product definition to effectively solve some “soul theory” problems, which is also conducive to leveraging the advantages that car companies have accumulated in product definition and channels.

The development of L3 smart driving highlights the ultimate technology, establishes a promising binding car company, and actively enters the market below 200,000

As a leading supplier of smart driving solutions in China, Huawei is expected to launch the L3 architecture in 2025, which will bring a revolutionary smart driving experience. At the Zunjie press conference, Huawei's full emphasis on sensor redundancy and other active safety features is expected to pave the way for the L3 architecture to be implemented as soon as possible. As far as car companies are concerned, cooperation with Huawei has a great effect in making up for shortcomings in intelligence in the short term.

At the same time, Huawei independently set up Auto BU Assets as an independent company. Cyrus and Avita have already completed the second transfer payment, and it is hoped that the pace of implementation will further accelerate. With the equity relationship as a link, car companies' willingness to cooperate with Huawei will increase markedly.

Furthermore, if Huawei wants to continue to grow, it will inevitably need to develop a market of less than 200,000. In the future, as lidar costs drop and pure vision solution capabilities continue to evolve, Huawei will have more ambition to lower the price of advanced smart driving. Cooperation between SAIC Motor and Huawei will begin the prelude to Huawei's entry into the mainstream price segment market. Finally, Huawei is actively developing the field of embodied intelligence, which is expected to open a new chapter.

Risk warning: demand in the automotive industry falls short of expectations; intelligent penetration rate falls short of expectations; industry competition intensifies, etc.