\u3000\u3000 Navinfo Co.Ltd(002405) (002405)
Event overview: on February 23, Navinfo Co.Ltd(002405) Dutch subsidiary was awarded as one of Volkswagen infotainment platform Infotainment is nominated to provide data enhancement and compilation services. From 2024 to 2030, it will be a new standardized information and entertainment platform for Volkswagen one Infotainment provides data enhancement and compilation services for the Volkswagen global market (except Chinese mainland).
Map “compilation” goes to sea, and the competitiveness is verified again. 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. In 2011, the company has wholly acquired mapscape, the world’s leading digital map compilation service provider, which takes the lead in commercializing NDS standard format map data in the world and can provide comprehensive data compilation services. It can compile different specifications of data from map suppliers around the world and compile them into customized map formats to meet the needs of automobile OEM manufacturers and customers in various industries. We believe that the acquisition of this order shows the company’s advanced map data integration, processing and compilation ability in the field of ads (advanced driving assistance system) and high-precision map from NDS (i.e. electronic map navigation data standard) and navigation, and shows the company’s leading position in the field of map data integration, processing and compilation as an advanced automobile service provider, As the company that takes the lead in “Surveying and mapping compilation” to sea, the relevant cooperation in the future is worth looking forward to.
In the new year of orders, we are optimistic about the butterfly change of the profit model under the closed-loop of “compliance + map + positioning”. Following Daimler’s orders, the release of Volvo’s “cloud compliance”, “high-precision map” and “automatic driving service platform” also clearly shows the business closed-loop behind the orders, that is, the home run from “information compliance – Data Modeling – base map verification – function display – positioning assistance”. It also verified the company’s real technical heritage and strategic ambition again. Since then, Ford orders have also come one after another, and subsequent orders are more worthy of expectation. So far, we emphasize again that the inflection point of the company has come. At the same time, the three in one data service annual fee mode of “compliance + map + positioning” has also been officially opened, and the annual service fee income of a single vehicle ranges from several hundred yuan according to different models. According to our calculations, China has 281 million cars at present. It is optimistic that by 2025, the number of L2 and above grade automatic driving vehicles will increase from about 6000000 to 50 million. Only considering the most urgent needs of L2 and above, the annual data of automatic driving vehicle data (i.e. cloud services) will reach more than ten billion yuan in 2025.
Investment suggestion: it is estimated that the company will achieve a revenue of RMB 2.95/49.3/6.56 billion and a net profit attributable to the parent company of RMB 1.1/3.8/580 billion from 2021 to 2023. The current market value corresponds to 14 / 9 / 6 times of PS from 2021 to 2023 and 400 / 112 / 73 times of PE from 2021 to 2023. The company has obvious advantages in traditional businesses such as high-precision maps and big data services, as well as emerging businesses such as automatic driving, chip and Internet of vehicles. It is firmly optimistic about its long-term development and maintains the “recommended” rating.
Risk tip: the development of chip business is not as expected; The competition of high-precision map industry intensifies; The realization speed of Internet of vehicles business is lower than expected; The development of automatic driving business is less than expected.
