Bank of America Securities: Ideal Automobile-W (02015) chip business introduces external capital to help expand non-automotive business

The Zhitong Finance App learned that Bank of America Securities released a research report stating that it will maintain the Ideal Automobile-W (02015) “neutral” rating and the target price for H shares of HK$58.9. The bank pointed out that Ideal Auto recently announced that its subsidiary MHX Technology, which focuses on chip and domain controller business, will conduct equity financing of RMB 1,625 billion to bring in external investors such as Hangzhou Jingtao, Lanchi Ventures, Huaye TianCheng, and MiraclePlus. Ideal Auto will invest RMB 1 billion through its wholly-owned subsidiary, maintain its controlling shareholder position, and continue to include MHX Technology in the consolidated statements.

Assuming that the employee incentive plan is fully used and additional subscription rights are exercised, the shareholding ratios of Ideal Auto, external investors and employee incentive entities will be 74.01%, 6.58%, and 19.41%, respectively.

The bank pointed out that Ideal Auto launched its self-developed Mach M100 artificial intelligence chip in June 2026. Using a 5-nanometer automotive-grade process, the single chip has 1,280 TOPS computing power, and has been deployed in various models. The M100 targets general artificial intelligence reasoning and can support autonomous driving, large-scale language models, and intelligent human-robot interaction.

Bank of America Securities believes that MHX Technology provides a unique platform for the chip and domain controller business of ideal cars, which will help expand opportunities in the non-automotive sector. It is expected that the scale of the business can be expanded through external commercialization. In the future, the bank will continue to pay attention to its R&D and commercialization progress, the expansion of non-automotive applications, and whether scale can be transformed into sustainable economic benefits.