20231127-太平洋-长安汽车-000625.SZ-华为长安再迈新里程_智驾赋能多维增量可期_17页_2mb

Summary of Chang'an Auto and Huawei Collaboration

Key Event

• On November 25, 2023, Chang'an Auto signed an Investment Cooperation Memorandum with Huawei. Huawei will establish a company for automotive intelligent systems and components, with Chang'an Auto intending to invest for up to 40% equity stake, exceeding market expectations.

Huawei's Involvement

• Huawei is deeply engaged in automotive technology through its Auto BU, offering a multi-model partnership approach. This includes delivering advanced solutions like intelligent driving, smart cockpits, ARHUD, and digital platforms, leveraging its proprietary technologies and infrastructure.

Historical Collaboration and Benefits

• Chang'an has a proven history with Huawei, highlighted by the joint Avita brand, featuring successful models like the Awita 11 and 12, with new launches expected in 2024. This collaboration is poised to enhance the智能化 (intelligence) of Chang'an's autonomous models, potentially boosting brands like Shenzhu.
• The partnership could increase sales elasticity and profit margins through better technology integration and investment income from the joint venture.

Financial Projections

• Chang'an's financial outlook is improved, with projected revenue growth of 2556% in 2023 and significant profit increases through 2025, supported by optimistic scenarios for Huawei's automotive business scaling, reducing per-unit costs and expanding market share.

Risks

• Key risks include uncertainties in investment deal completion, slower-than-expected auto sales growth, and intensified industry competition.