Huizhou Desay Sv Automotive Co.Ltd(002920) (002920)
Equity incentive grants highlight high-quality management genes and increase the certainty of performance growth
On November 26, 2021, the company completed the grant of equity incentive at a price of 48.03 yuan / share. This equity incentive includes 855 incentive objects, accounting for 20% of the total employees of the company by the end of 2020, covering high-quality managers, high-performance technical and professional backbone, excluding directors, supervisors and senior managers of the company, as well as shareholders and their relatives who individually or jointly hold more than 5% of the company. High quality management can be seen on the paper. As of the first half of 2021, the company’s five ESOP platforms hold a total of 14.8% of the company’s shares. This incentive is granted to the motivated employees with shares accounting for 0.96% of the total share capital. It is expected to further mobilize the enthusiasm of employees, attract talents to join the company and improve the endogenous competitiveness of the company. At the same time, the certainty of the company’s performance growth has been further confirmed and continues to be optimistic about the company’s development. It is expected that the net profit attributable to the parent company from 2021 to 2023 will be RMB 877 / 1154 / 1442 million respectively, the corresponding EPS will be RMB 1.59/2.10/2.62/share respectively, and the PE corresponding to the current stock price will be 89.1/67.7/54.2 times respectively, maintaining the “buy” rating.
The intelligent cockpit continues to upgrade, and the volume and price of the company’s products rise at the same time
In the field of intelligent cockpit, the trend of large screen, multi screen and localization has been continuously deducting. The company’s products extend from the cockpit big screen and digital dashboard to the domain controller, the new generation of cockpit based on virtualization, AR navigation and so on. The products are continuously iterated to improve the value of single vehicle, and the customer structure is also continuously upgraded. In recent years, they have successively broken through joint venture / foreign-funded vehicle factories such as Toyota (Indonesia) and Maruti Suzuki (India), and obtained new power customer points such as ideal.
The cockpit is growing steadily, the domain controller is about to take off, and the leading supplier of intelligent driving is rising
In the field of automatic driving, the domain controller for automatic driving in parking and low-speed scenes and the integrated solution for driving and parking have been designated by Geely, Chery, GAC and other host plants. In the field of high-level automatic driving, the company has a forward-looking layout, cooperates with NVIDIA and Xiaopeng to develop ipu03 domain controller, and has accumulated experience in software and hardware development of domain controller based on NVIDIA chip. Players in the field of autopilot chips are still immature. NVIDIA’s next-generation chip orinx has almost become the first choice for car companies that want to quickly implement the autopilot function with strong computing power, perfect tool chain and rich mass production experience. The domain controller ipu04 developed by the company based on the chip has been designated for many projects such as ideal cars, and will continue to obtain new orders. 2022 is the first year of mass production of automatic driving. With the gradual implementation of high-value products, the company’s position as a leading supplier of intelligent vehicles will be further consolidated.
Risk tip: the sales volume of downstream vehicles is lower than expected, and automatic driving products are facing fierce competition.
