Recently, Western Securities Co.,Ltd. (002673) released an in-depth research report initiating coverage on PATEO (02889), assigning a Buy rating. The report estimates that the company's operating revenue for 2026-2028 will be 6.030 billion yuan, 8.487 billion yuan, and 11.074 billion yuan, respectively, with year-on-year growth rates of 71.8%, 40.7%, and 30.5%. The core logic in the report is the dual-wheel drive of "cockpit premiumization" and the "chip second curve." Currently, the company ranks first in the cockpit domain controller market for self-owned brands priced above 250,000 yuan with a 25.18% share, and mass production of L3-level cockpit domain controllers will definitively raise per-vehicle value. At the same time, it plans to acquire approximately 70% equity in Chengdu Mingyi for no more than 1.4 billion yuan, entering the AI data center optical communication electrical chip track where the domestic production rate is only 7%, creating a second growth curve beyond its main business.

In August 2026, PATEO announced a plan to acquire approximately 70% equity in Chengdu Mingyi for a consideration of no more than 1.4 billion yuan. This is the company's first major industrial acquisition since listing on the Hong Kong Stock Exchange. Chengdu Mingyi was founded in 2015 and operates under a Fabless model. It is one of the very few companies in China capable of mass-producing single-channel 100G TIA electrical chips, with products already applied in 400G/800G optical modules, solving a key link in high-speed interconnection for AI data center computing power. According to PATEO's announcement, Chengdu Mingyi's revenue in 2025 was approximately 305 million yuan. According to statistics from ICC Xinshi Consulting, the global data center-side optical communication electrical chip market size reached 2.09 billion US dollars in 2024 and is expected to reach 6.02 billion US dollars by 2029, with a compound growth rate of 23.6%. In the field of optical communication electrical chips at 25G and above speeds, Chinese manufacturers account for only 7% of global revenue, leaving broad room for domestic substitution.

Western Securities Co.,Ltd. believes that this acquisition is centered on PATEO's integrated development strategy of "software, hardware, chip, and cloud," further expanding capabilities in chips, optoelectronics, and AI servers. It is expected to bring the following benefits to PATEO: first, deepening chip business layout, seizing opportunities from high-speed data transmission demand driven by intelligent vehicle architecture upgrades, and forming end-cloud synergy; second, entering the core link of AI infrastructure to share in the growth dividends of global AI infrastructure construction; third, customer and technology synergy, deeply integrating leading customer resources and coordinating both parties' technical capabilities in intelligent cockpits, open-source software systems, AI servers, and communication chips.

Western Securities Co.,Ltd. believes that factors driving the company's share price include: rapid growth in the intelligent vehicle market boosting the company's performance; domain controller solutions moving toward premiumization with continuously rising unit prices driving revenue growth; as business scale continues to expand, economies of scale emerging; and after completing the acquisition of Chengdu Mingyi, its optical communication electrical chip market share significantly increasing, driving revenue growth. Based on optimism about the company's intelligent cockpit business premiumization trend, the second growth curve in optical communication electrical chips, and subsequent performance, Western Securities Co.,Ltd. initiated coverage and assigned a Buy rating to PATEO.