CICC Maintains Outperform Rating on ROBOSENSE (02498) with Target Price of HK$47

Stock News12-01

CICC released a research report expressing optimism about ROBOSENSE (02498), citing its competitive edge in digital products to benefit from rapid downstream demand growth. The firm reiterated an Outperform rating and a target price of HK$47.00, implying a 43% upside from the current price, based on 10.9x/7.1x P/S for 2025/2026. The current share price reflects 7.6x/5.0x P/S for 2025/2026.

Key highlights from CICC’s analysis: 1. **3Q25 Performance In Line with Expectations**: ROBOSENSE reported revenue of RMB407 million, meeting forecasts. - Gross margin improved by 6.5 percentage points YoY to 23.9%. - Strong performance in robotics: LiDAR sales for this segment surged 393.1% YoY, with revenue up 157.8%. - The company aims to achieve profitability in 4Q25.

2. **ADAS Business Momentum**: - The EM platform’s digital products secured design wins for 56 models across 13 automakers. The EMX platform, targeting L2+, has 49 model wins and is expected to enter mass production in 2026, becoming a key driver for ADAS revenue. - The EM4 platform is already deployed in models like Zeekr 9X and IM LS6/LS9, positioning it as a core solution for L3 autonomy. - Overseas expansion: ROBOSENSE secured orders from 12 international and joint-venture brands, including Europe’s largest automotive group (over 500,000 units) and a North American EV maker (over 500,000 units), signaling strong growth potential.

3. **Robotics and Other Segments**: - Partnership with Didi: 10 units of ROBOSENSE’s automotive-grade LiDAR will be equipped on next-gen Robotaxis. - Entry into lawn care robotics via E1R and Airy products, with mass production starting in 4Q25 for top-tier clients. - Urban logistics: Collaboration with 90% of leading global players; the newly launched Fairy LiDAR is already commercialized on Neolix X3 autonomous delivery vehicles. - October saw the launch of Active Camera 2, enhancing its embodied intelligence portfolio.

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