\u3000\u3000 Iat Automobile Technology Co.Ltd(300825) (300825)
Key investment points
The company announced on February 18 that it plans to jointly invest and establish Shenzhen gecko Innovation Technology Co., Ltd. with the chairman of the company, Mr. Xuan Qiwu, Mr. Liu Jiangfeng and faristar (HK) investment holding limited. Among them, the company plans to subscribe RMB 1 million with its own funds, accounting for 10% of the registered capital, Mr. Xuan Qiwu subscribed RMB 400000, accounting for 4% of the registered capital, and Mr. Liu Jiangfeng subscribed RMB 6.3 million, accounting for 63% of the registered capital; Faristar (HK) investment holding limited subscribed 2.3 million yuan, accounting for 23% of the registered capital.
Comply with the trend of electric intelligence and seize the new air outlet of skateboard chassis. The sliding sector chassis adopts the structural design of non load-bearing body to realize the integration of wire controlled steering, braking, battery and traditional chassis. Under the trend of electric intelligence, the skateboard chassis has high integration and strong universality, which can significantly shorten the development cycle of the whole vehicle and reduce the R & D cost. It is convenient for car enterprises to focus more on the differentiation of cockpit and driving experience. Rivian and Youpao technology have entered the game. Gecko technology invested and established by the company will mainly be based on automobile skateboard chassis technology and products to serve urban logistics, business, family, shared travel and other fields.
The investor has a deep background and has a close relationship with Alibaba, Xiaomi and other Internet leading enterprises. According to the company’s announcement, Mr. Liu Jiangfeng, the investor of gecko technology, successively held many important positions such as senior vice president of Huawei and President of glory mobile phone, and later founded multipoint dmall, black shark technology and advantage technology. According to tianyancha, Jinxing venture capital under Xiaomi holds 46.44% of the shares of black shark technology, while advantage technology won Alibaba’s round B investment of 700 million yuan in 2019. The deep background of the investor lays a solid foundation for the future growth of gecko technology.
The shareholding ratio of 14% highlights the position of a neutral third-party vehicle design and moves forward to a platform integrated enterprise. According to the company’s announcement, the company and its related party Mr. Xuan Qiwu jointly invested in gecko technology, with a total shareholding ratio of 14%. We believe that, on the one hand, the shareholding ratio of 14% reflects the neutrality of the company in positioning as a third-party vehicle design enterprise. On the other hand, the company’s technology enabled new platform will further consolidate its leading position in vehicle design and move forward from a single project-based enterprise to a platform integrated enterprise.
Investment suggestion: with the company’s continuous progress towards a platform enterprise, its ability to integrate technology and resources will be further highlighted, and it is expected to take the lead in benefiting from the wave of automotive intelligence. Considering the company’s performance forecast for 2021, it is estimated that the net profit attributable to the parent company will be 190-210 million yuan in 2021. In addition, according to NBD automobile, the company has recently participated in the research and development of autox vehicle, and it is expected that the company will maintain high performance growth in 2022. We slightly adjusted the company’s profit forecast from 2021 to 2023, giving net profits of 201 million yuan (original value 217 million yuan), 324 million yuan (original value 317 million yuan) and 501 million yuan respectively. Based on the closing price on February 18, 2022, the current market value of the company is RMB 8.835 billion, corresponding to PE of 44.0x, 27.3x and 17.6x from 2021 to 2023 respectively, maintaining the “buy” rating.
Risk tips: the pace of promoting new models slows down, the lack of core drags down car sales, the progress of raised investment projects is less than expected, the progress of parts business is less than expected, and the progress of investment and establishment of the company is lower than expected.
