\u3000\u3000 Navinfo Co.Ltd(002405) (002405)
Event overview
On February 23, 2022, Navinfo Co.Ltd(002405) announced that its Dutch subsidiary Navinfo Co.Ltd(002405) (Europe) Co., Ltd. (hereinafter referred to as "4D Europe") had received a Nomination Letter from cariadse (hereinafter referred to as "cariad"), a wholly-owned subsidiary of Volkswagen Group (hereinafter referred to as "Volkswagen"). From 2024 to 2030, 4D Europe will provide Volkswagen with a new standardized information and entertainment platform, one Infotainment provides data enhancement and compilation services for the Volkswagen global market (except Chinese mainland). The specific amount of sales depends on the amount of one carried during the above period Number of Volkswagen models sold by infotainment.
Analysis and judgment:
The strength of the company has been recognized by Volkswagen, and the compilation ability has evolved to the field of high-precision maps
1. The products will be launched in 2024, and the strength of the company is recognized by Volkswagen software development subsidiary. Volkswagen one Infotainmen was developed by cariad and will be carried on Volkswagen from 2024. Cariad is building a unified technology and software platform for all Volkswagen brands, including vehicle operating system, vehicle cloud platform and new unified architecture. Cariadse is a wholly-owned subsidiary of Volkswagen Group, which is engaged in the development of automotive software.
2. Provide map compilation services for overseas public. The company's compilation ability has evolved to the field of high-precision maps. The process of map compilation is to compile the original map data into a map format that users can use. Through compilation, the data will be standardized, redundant deleted, and compressed to make it suitable for various storage media. According to the 4D announcement: "4D Europe has been nominated to provide data enhancement and compilation services for the Volkswagen infotainment platform one. Infotainment, demonstrating the company's advanced map data integration, processing and compilation capabilities from NDS (navigation data standard) and navigation field to ADAS and high-precision map field." It can be seen that the service capability of 4D includes the field of high-precision map.
Pay attention to the full service driving of intelligent driving brought by the scarcity of company map + chips!
1. Map scarcity: it is recognized by leading car enterprises and has a wide demand for map capacity. Navinfo Co.Ltd(002405) is the first cartographer in China to obtain class a surveying and mapping qualification. At present, the qualification is still scarce (there are about 30 licenses on the market). At the same time, Navinfo Co.Ltd(002405) can be called the "national team" of maps, and the scarcity is worthy of attention. The digital security platform business came into being with a superior profit model.
2. Chip scarcity: jiefa cockpit chip has entered the front loading market and can be expected in large quantities. The cockpit chip ac8015 self-developed by jiefa technology, a wholly-owned subsidiary of 4D, achieved mass production in March 2021. The company expects that the shipment volume will exceed the target of one million by the end of 2022. Jiefa chip will continue to benefit from the localization and replacement of chips, and continue to expand the market and promote the growth of the company with its own strength and cost performance.
3. Business closed-loop connection: the scarce ability brings the total growth of the whole business. The company has signed with leading car companies in high-precision map, automatic driving development platform, map compilation and other businesses in recent half a year, confirming the full growth of the business catalyzed by the scarcity of the company. We think the company has entered the fast lane of development!
Investment advice
Navinfo Co.Ltd(002405) as an automotive intelligent leader with "national team background", it will give priority to the improvement of road traffic, passenger cars and other intellectualization. The maintenance profit forecast is as follows: it is estimated that the operating revenue of the company from 2021 to 2023 will be 3.0/39.7/5.21 billion yuan, and the earnings per share (EPS) will be 0.05/0.17/0.34 yuan, corresponding to the closing price of 17.89 yuan / share on February 23, 2022. PE will be 367 / 103 / 52 times and PS will be 14 / 11 / 8 times respectively, maintaining the "buy" rating of the company.
Risk tips
1) risk of new product / business promotion falling short of expectations. 2) The risk of tight global supply of automotive chips. 3) The risk of macroeconomic downturn is that the development of smart car industry is less than expected.
