Dongwu Securities: The industry's leading smart cockpit solution provider covered Botai Auto Federation (02889) for the first time and gave it a “buy” rating

The Zhitong Finance App learned that Dongwu Securities released a research report saying that Botai Auto Federation (02889) is a leader in the domestic smart cockpit domain control industry. It is optimistic that the share of the company's high-end domain control products will rise steadily, profitability will continue to increase, and the growth rate is superior to the industry. First coverage, giving a “buy” rating.

The main views of Dongwu Securities are as follows:

The company is a leading supplier of intelligent cockpit solutions in the industry, integrating software and hardware and cloud innovation to the core competitiveness

The company was founded in the early stages of the automotive intelligence industry in 2009, initially focusing on the research and development of connected vehicle systems. In 2018, the company shifted its focus to smart cockpit solutions integrating software, hardware and cloud services, and gradually consolidated its leading position in the industry. The company currently has 6 R&D centers and 3 manufacturing bases, and is the industry's leading supplier of integrated smart cockpit and intelligent connectivity full-stack solutions. The company has many customers, and has accumulated more than 50 brands. Among them, Ideal is the company's core customer. Since 2024, its business has driven the company's rapid revenue growth.

The intelligent upgrading of automobiles continues to iterate, and the company's position continues to improve

Currently, the domestic and global passenger car smart cockpit penetration rate is steadily increasing, driving the smart cockpit penetration rate to steadily advance. The penetration rate of the Chinese market rose rapidly from 35.3% in 2019 to 75.9% in 2025; the global market penetration rate rose rapidly from 38.40% in 2019 to 59.40% in 2025. The domestic/global passenger car smart cockpit solutions market is growing rapidly. The market size of China's passenger car smart cockpit solutions industry is 129 billion yuan in 2024, and is expected to reach 299.5 billion yuan in 2029. At the same time, benefiting from Qualcomm's leading position in the smart cockpit chip industry and the rapid rise in Huawei's position, the company's market position has steadily improved.

Qualcomm's Huawei dual ecosystem is deeply bound, the “Engine” series full-stack technology has built strong barriers, and high-end domain control volume is leading the growth

The company's cooperation with Qualcomm Technologies has been further expanded to jointly create a next-generation smart cockpit solution equipped with the Snapdragon cockpit Platform Extreme Edition (QAM8397P). At the same time, the company's cooperation with Qualcomm continues to deepen in both directions, laying a solid foundation for long-term stable cooperation. Since 2018, the company has continued to deepen its cooperation with Huawei. In 2025, Huawei Smart Vehicle Solution BU reached an agreement with the company to cooperate on intelligent vehicle control modules, further deepening the smart vehicle control module partnership. Engine OS, Engine Core, and Engine Cloud developed by the company together form the core technology stack of Botai's “software and hardware cloud integration” strategy. The three together support the scalability, rapid customization, and continuous evolution of Botai's smart cockpit solutions. At the same time, there is a clear trend of high-end upgrading of the company's domain control products. Since its launch in September 2025, it has received 4 important high-end smart cockpit projects.

Profit forecast: The subsequent increase in the company's revenue is mainly due to the continued volume of orders for high-end domain control products, which is optimistic about the rapid growth of the company's revenue. The bank estimates that the company's total revenue for 2026-2027 will be 5.452 billion yuan and 7.839 billion yuan respectively; net profit to mother will be 0.1 billion yuan and 1,002 billion yuan respectively.

Risk warning: Risk of large short-term stock price fluctuations; risk of excessive share of a single customer; risk of insufficient supply or large price fluctuations from upstream chip suppliers; risk of customer expansion falling short of expectations; risk of products and solutions not being able to meet changing market needs.