Autel Intelligent Technology Corp.Ltd(688208) (688208)
Event: on December 1, 2021, the company announced that the issuance of convertible bonds was accepted by the Shanghai Stock Exchange, and the total amount of funds to be raised did not exceed RMB 1.28 billion, of which RMB 900 million was invested in the construction of R & D center and the R & D project of new generation intelligent maintenance and new energy comprehensive solutions, and RMB 380 million was used to supplement working capital, which is not expected to form goodwill.
Greatly expand office space, strengthen R & D investment, and lay a solid foundation for the continuous expansion of product matrix. The construction area of the rainbow technology building to be acquired in the convertible bond scheme of the company is about 23700 square meters, and the construction area of the underground house is about 4900 square meters, Combined with the company’s prospectus, the total area of the leased office space of the company in Shenzhen Nanshan smart park is about 8900 square meters, and the new 4th floor of building B1 of smart Park mentioned in the mid-term report of 2021 (assuming the same area as the 6th floor is 19000 square meters), the total area of the company’s leased office space for R & D and public use in Shenzhen is about 10800 square meters. This large-scale expansion of the office space (19800 square meters will be used for R & D site) will lay a hardware foundation for the future continuous R & D investment. At the same time, it is planned to invest 121 million yuan for equipment purchase and 692 million yuan for R & D expenses. The plan also shows the company’s determination to continue and strengthen R & D investment in the future. The disclosure of this plan shows that some R & D subprojects at present (next generation platform & lower computer, new energy tool chain) has completed the research preparation after project approval and entered the development stage.
Filling the gap in the maintenance market of new energy vehicles will help to seize the opportunity of structural change in the future automobile market. At present, the automobile market presents structural adjustment, and the proportion of new energy vehicles continues to increase. However, at present, the main automobile maintenance service institutions mainly focus on the service system of traditional fuel vehicles. The maintenance work of new energy vehicles focuses on the 4S stores of the original automobile factory. There is still a huge gap on the supply side of the battery maintenance and diagnosis market of new energy vehicles. The company’s investment in new energy vehicle maintenance projects will fill this gap and help the company seize the market opportunity.
Comply with the upgrading requirements of comprehensive diagnostic products and lay a solid foundation for the algorithm and coverage optimization of the next generation of intelligent maintenance products. At present, the Automotive comprehensive diagnosis products are still insufficient to cover all models in the current automotive market, and there is a demand for the software and hardware upgrading of the comprehensive diagnosis products. The company’s increased investment in the next generation of comprehensive diagnosis products will further improve the technical performance and intelligence of the products, meet the demand of the automobile maintenance market for providing accurate fault location in the process of vehicle maintenance, and help the company further improve the performance of intelligent comprehensive diagnosis products.
Maintain the “buy” rating. It is predicted that from 2021 to 2023, the company will achieve operating revenue of 2.315 billion yuan, 3.416 billion yuan and 4.726 billion yuan, net profit attributable to the parent company of 506 million yuan, 753 million yuan and 1.035 billion yuan, and maintain the “buy” rating.
Risk warning: the risk of deterioration of international trade environment; Risks of backward technology R & D and investment not meeting expectations; Raw material supply risk; Risks of intellectual property disputes; There is a risk of errors in key assumptions.
