Equity Research Report / Company Research / / Research / Company Report Research Equity Auto Industry Thematic Report Smart driving: From ADAS to unmanned driving 28 Jun 2016 OUTPERFORM Investment Highlights (Reiterate) As technology evolves, we will soon head into an era of “Internet CITICS Research of Things”. Smart driving, which ultimately culminates in pilotless driving, seems the best-fitting theme under the concept of XU Yingbo “Internet of Everything”. Tech companies are accelerating the pace of Tel: 010-60838704 technological advances and product iteration related to smart driving, Email:
[email protected] and ADAS (Advanced Driver Assistant Systems) currently stands as the Practicing license:S1010510120041 best point of exposure to the new theme. We take note of increased CHEN Junbin investor attention on smart driving names driven by: 1) Tech companies Tel: 010-60836703 Auto beyond the automotive industry, led by Tesla Motors, Apple Inc., and Email:
[email protected] China’s BAT (i.e. Baidu, Alibaba, Tencent) have accelerated Practicing license:S1010512070001 technological advances in the universe of smart driving, and consumer and investor attention have come along with these new developments; GAO Deng 2) Interconnected vehicles on a real-time basis and unmanned driving Tel: 010-60836729 are made possible thanks to 5G communication technologies and Email:
[email protected] up-to-date sensor technologies available at a lower cost; and 3) Practicing license:S1010514070004 Conventional auto OEMs are also making efforts toward smart driving CUI Yushuo via R&D or M&A to deal with the competition. Tel: 010-60836750 Smart driving will gear up on evolving technologies, clarity on Email:
[email protected] regulation and production vehicle rollouts.