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$SENSETIME-W(00020.HK)This hype is driven by its new product, autonomous driving. Possible hype logic:

1. The product made its debut at the Beijing Auto Show with the UniAD in-car demo. The product is likely an industry-leading end-to-end solution, similar to Tesla's current FSD technology foundation, with significant development potential. Judging from the award level of current theoretical achievements, it likely involves substantial theoretical innovation and is disruptive.

2. With Huawei releasing a new-generation autonomous driving system and Tesla's FSD expected to enter China, the automotive industry is accelerating into the second half of the intelligent era. For automakers, finding a low-cost autonomous driving solution that allows them to overtake competitors is particularly urgent. Currently, Huawei's autonomous driving system is costly and difficult to penetrate models priced below 200,000 yuan. Moreover, Huawei is very aggressive, having developed almost all core components, leaving automakers with limited bargaining power in partnerships. For low-cost, vision-based end-to-end solutions, SenseTime might be a good choice. The company's products have already been adopted in over 30 domestic vehicle models.

3. In the future, as SenseTime collaborates with automakers, it may further accelerate the implementation of related large language models and find more monetization opportunities. Fourth, Huawei's autonomous driving is currently valued at 250 billion yuan, while SenseTime is valued at 50 billion yuan—a huge gap, implying significant room for valuation repair.