According to the Zhito Finance APP, CICC released a research report stating that it maintains the "outperform Industry" rating for Ideal Automobile-W (02015), with a Target Price of $33 for U.S. stocks and 128 HKD for Hong Kong stocks. Currently, there is still a gap in market expectations regarding the company's capabilities in AI, its long-term Global Strategy, and the pure electric cycle in 2025. Recently, the company held the Ideal Automobile AI Talk event and updated the latest progress in applying AI technology in smart driving and the Ideal Classmate App, as well as long-term thoughts on corporate development under the major trend of AI.

CICC's main points are as follows:

Breaking through the boundaries of car companies, aiming to become a Global leading AI enterprise.

Reviewing Li Xiang's entrepreneurial journey, starting with Autohome in the vertical Internet field and gradually transforming, it signifies that Ideal Automobile will not be confined to a vertical sector but will use Smart Automobile as its core Hardware and gradually generalize towards becoming an AI enterprise. The company believes that General AI includes three development stages: "enhance my abilities," "become my assistant," and "silicon-based family." The company's self-developed end-to-end and VLM base models are expected to become the operating system + programming language of the AI era, thus achieving a first-mover advantage in commercialization and functionality. In the development of AI, data technology has also brought a new revolution to the industry, improving efficiency in various aspects of corporate Operation, and the company currently maintains an industry-leading position in data accumulation. In the long run, the company plans to achieve integration of language models and spatial intelligence into a larger VLA model to gain a leading edge in artificial intelligence transformation.

Firmly transforming to an end-to-end model, with industry-leading data iteration capabilities.

During this AI Talk, it was announced that the company's high-speed urban full-scenario upgrade of the end-to-end + VLM technical architecture is planned to fully PUSH AD Max users on December 31. Looking back, the company has continuously increased investment in smart driving research and development since 2021, experiencing several adjustments in technical architecture, focusing on exploring cutting-edge technologies and expanding capability boundaries in the industry. Currently, smart driving has entered the leading tier of the industry, with the penetration rate of smart driving version models continuously increasing to 60-70%, establishing a leading advantage for the next step in data iteration. In the long run, the level of smart driving is gradually becoming the core capability of auto companies, and this firm believes that the company possesses technological and data advantages, which may allow it to gain entry to the next L4 stage.

The release of the Ideal Classmate App allows entry from the car system to the mobile phone.

In June 2023, the company launched the self-developed cognitive large model 'Mind GPT', which appeared in the car system in the form of the 'Ideal Classmate' App, supporting natural language communication and command sending. From a data perspective, the company disclosed that since the launch of Mind GPT in Ideal Autos, the 'Ideal Classmate' has accumulated 2.38 billion awakenings, a task completion rate of 96%, and user satisfaction of 96.2%. In 2024, Mind GPT will be upgraded to 3.0, and the company will release the smart assistant Ideal Classmate App, enabling the large model to move from the car system to mobile devices. In terms of capability, its knowledge Q&A ability and visual perception ability perform well, which the industry believes will help the company achieve its vision of becoming an AI enterprise in the long run.

Risks

The performance of pure electric models is below expectations; intelligent driving is below expectations; market competition is intensifying.