Bank of America Securities released a research report stating that it will maintain Ideal Automobile-W's “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. 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 business scale 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.

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