PATEO (02889) surged nearly 7% during the trading session, reaching a high of HKD 260 and once again setting a new record high since its listing. As of the time of writing, the stock was up 3.95%, trading at HKD 252.6, with a turnover of HKD 10.9985 million.

Huatai Securities released a research report stating that PATEO is a leading provider of smart cockpit solutions in China, possessing full-stack in-house R&D and mass production capabilities for software, hardware, and telematics cloud services. Amid the industry's shift from "hardware penetration" to "system capability competition" and the rising average value per vehicle, the company is expected to achieve a synergy of high revenue growth and profit improvement, leveraging its first-mover advantage in high-end SoC platforms, its unique positioning within the HarmonyOS ecosystem, and breakthroughs in overseas markets.

Everbright Securities previously pointed out that the company maintains close cooperation with leading upstream and downstream enterprises such as Qualcomm and Huawei. In 2024, it ranked third in the domestic market share for cockpit domain controllers and has successfully entered the core supply chains of leading new energy vehicle manufacturers. It is expected to expand its market share by leveraging its technological and ecosystem advantages. Compared to mature automotive supply chain companies, PATEO holds an advantage with its integrated "hardware and software" approach and exhibits high revenue growth, warranting a certain price-to-sales (PS) valuation premium. The company is also expected to enter the supply chains of overseas OEMs through international clients like Porsche, with overseas revenue poised to become a second growth curve. The company possesses a degree of scarcity and potential for valuation premium.