\u3000\u3000 Huizhou Desay Sv Automotive Co.Ltd(002920) (002920)
Focus on automotive electronics for more than 30 years, embrace intelligent driving and open up long-term growth space
Founded in 1986, the company has been deeply engaged in the field of automotive electronics for more than 30 years, focusing on three product lines: intelligent cockpit, intelligent driving and Internet service. In 2020, the company achieved an operating revenue of 6.799 billion yuan, a year-on-year increase of 27.39%; The net profit attributable to the parent company was 518 million yuan, a year-on-year increase of 77.36%. In August 2021, the company issued the restricted stock incentive plan for 2021 (Draft). In terms of operating income, the assessment target is based on the operating income in 2020, and the growth rate from 2022 to 2024 is not less than 30%, 40% and 50% respectively. In November 2021, the company released a brand-new brand, advocating “Chuang Ling Zhi Xing”, breaking through the boundaries of automotive electronics, jumping out of the limitations of the original industry and creating brand value with Chuang Ling Zhi behavior as the core.
The accelerated penetration of intelligent Internet leads to the birth of “software defined vehicle”, and technological innovation drives industrial change
Driven by policy encouragement and industrial reform, the penetration of intelligent networked vehicles has accelerated. According to the data of Che yunwang, in 2021, the sales volume of China’s intelligent Internet connected vehicles reached 2.718 million, accounting for 12.74% of all passenger vehicle sales, of which the proportion in December reached 18.68%. According to McKinsey’s data, the market scale of automotive electronics and software related to automatic driving will increase to US $469 billion in 2030, and the CAGR from 2020 to 2030 will be 7%. The reform of automotive electronics and electrical architecture drives the steady growth of automotive electronics and software. The development of intelligent networked vehicles puts forward higher requirements for automotive electronics and software, which is expected to drive the in-depth reform of the industrial chain and the reconstruction of value distribution.
Forward looking strategic layout of intelligent networking industry, technological innovation and strengthening the core competitiveness of products
1) forward looking product layout: the company continues to build an overall solution for intelligent travel around the three product lines of intelligent cockpit, intelligent driving and Internet service. In the period of rapid change in the industry, the forward-looking strategic layout has won the company a leading advantage, including the rapid commercialization of benchmark products such as full-automatic parking, large screen cockpit products and ipu03 automatic driving domain controller. 2) Keep leading technology: from 2018 to 2020, R & D expenditure accounted for more than 10% of operating revenue, continuously deepen the optimization of R & D system architecture, and build a platform, efficient and agile R & D system; The company continues to expand partners, go hand in hand and win the future.
Profit forecast and investment suggestions
The company is one of the leading mobile travel technology companies in the world. It is committed to becoming a leader in travel reform in the future. Under the background of great changes in the automotive industry, the company has broad space for sustainable growth. It is predicted that the operating revenue of the company from 2021 to 2023 will be 9.095 billion yuan, 11.614 billion yuan and 14.321 billion yuan. Referring to the performance forecast of 2021, the net profit attributable to the parent company is adjusted to 827 million yuan, 1.137 billion yuan and 1.460 billion yuan, and the EPS is 1.49, 2.05 and 2.63 yuan / share, corresponding to 92.03, 66.90 and 52.11 times of PE. In the past three years, the company’s PE has mainly operated between 25-125 times. Considering the high prosperity and growth space of the track, the company has maintained the target PE of 80 times in 2022, with the target price of 164.00 yuan. Maintain the “overweight” rating.
Risk tips
Macroeconomic environment and industry risks; Human resource risk; Technology R & D risk; Market competition intensifies.
