Guangting information (301221)
Key investment points
Intelligent vehicle software service provider, full domain and full stack software layout
Founded in 2011, the company is an enterprise that mainly provides professional customized development of automotive electronic software and software technology services for automotive parts suppliers and vehicle manufacturers. The company started from vehicle navigation and continuously increased the research and development of intelligent vehicle software. At present, the products have covered intelligent cockpit, intelligent electronic control, intelligent driving, intelligent Internet connected vehicle test and service, mobile map data service, etc., and have the ability to develop intelligent vehicle full domain and full stack software. Benefiting from Dongfeng Automobile Intelligent industry, the company’s revenue increased from 111 million yuan in 2015 to 334 million yuan in 2020, with a CAGR of about 24.65%, and the corresponding attributable net profit increased from 12.8 million yuan to 73 million yuan, with a CAGR of 41.65%. The company expects to achieve a revenue of 418-444 million yuan in 2021 (a year-on-year increase of 25% – 32.78%), The attributable net profit was 74-84 million yuan (a year-on-year increase of 1.37% – 15.07%), and the performance increased steadily.
With the advent of the era of automotive intelligence, the proportion of software value is increasing
Benefiting from the continuous development of new technologies such as cloud computing, 5g and AI, cars have entered the era of intelligence, and “software defines cars” has become a consensus. With the improvement of the degree of automotive intelligence and networking, the proportion of software in the content structure of the whole vehicle will gradually increase. According to McKinsey’s data, the proportion of software structure in global complete vehicles was only 10% in 2016 and is expected to exceed 30% in 2030. The automotive software market has broad development prospects. For example, according to the prediction of the prospective industry research institute, the penetration rate of China’s intelligent cockpit will be about 48.8% in 2020 and 75.9% in 2025. The corresponding market scale of intelligent cockpit will increase from 56.7 billion yuan in 2020 to 103 billion yuan in 2025, with CAGR of 12.68%. As an enterprise with the ability to develop intelligent vehicle software in the whole domain and stack, the company is expected to benefit fully.
Rich customer resources, listed and raised investment projects to enhance competitiveness
The company has been deeply engaged in intelligent automotive electronic software for more than ten years, and has accumulated a large number of high-quality customers with excellent product R & D and delivery capabilities. It includes the world’s leading auto parts suppliers such as Japanese electric products, Yanfeng Visteon, Faurecia Gele, electric equipment and Marelli, as well as well-known automobile manufacturers at home and abroad such as Nissan, Saic Motor Corporation Limited(600104) , Renault Samsung, Chongqing Changan Automobile Company Limited(000625) . In addition, the company has also established joint ventures with Foggia Gele, Saic Motor Corporation Limited(600104) and electric equipment to jointly explore new technologies and models for the development of automotive electronic software, with rich customer resources. The net capital raised by the company’s listing is 1.478 billion yuan, which is intended to be used for the construction project of basic automotive electronic software platform based on domain controller, the construction project of intelligent connected vehicle test and simulation platform, and the construction project of intelligent connected vehicle software R & D center. The fund-raising and investment projects are carried out around the main business of the company, which is conducive to improving the competitiveness and market position of the company and the long-term development of the company.
Profit forecast
We are optimistic about the high outlook of the automotive software industry and the business layout of the company. It is predicted that the net profit attributable to the parent company from 2021 to 2023 will be 79 million yuan, 123 million yuan and 175 million yuan respectively, and the EPS will be 85 million yuan, 1.33 million yuan and 1.88 yuan respectively. The current share price corresponds to 106, 68 and 48 times of PE respectively. It is covered for the first time and given a “recommended” investment rating.
Risk tips
The risk of high customer concentration, the risk of less than expected R & D, the risk of intensified competition, the risk of less than expected industry development, the risk of lower than expected raised investment projects, the risk of repeated epidemics, and the risk of macroeconomic downturn.
