Thunder Software Technology Co.Ltd(300496) (300496)
Based on the core technology of the operating system and comprehensive layout in multiple fields. The company provides full stack software services with the operating system as the core. Its business covers three sectors: smart software, smart car and smart Internet of things. It has a wide customer base. There are manufacturers such as Samsung, Xiaomi and vivo in the field of mobile terminals. In the field of chips, it has carried out in-depth cooperation with Qualcomm and Spreadtrum, and its automotive business covers more than 200 mainframe factories. From 2015 to 2020, the compound growth rate of the company’s revenue and profit was 33.7% and 30.5% respectively, maintaining rapid growth.
The software defines the automobile era, and the cockpit domain + driving domain + Kanzi Troika work together. Software defines the automotive era. The number of automotive software codes, the value of single vehicle software and the proportion of software in automotive cost have increased rapidly. The traditional automotive distributed ECU architecture can no longer meet the needs of automotive intelligence, and is gradually advancing to domain controller EE architecture and central centralized EE architecture. In terms of cockpit area, the company has in-depth cooperation with Qualcomm, which has the largest market share, to jointly create a cockpit ecology; In the driving field, Qualcomm ride platform will be officially equipped with mass-produced models in 2022, and acquire Weining to strengthen the automatic driving ability. The company will fully benefit from the establishment of Qualcomm ecology; The company has Kanzi, the world’s leading HMI design software, with a global market share of more than 50%. The company has made a lot of forward-looking layout in the automotive field through the acquisition of rightware, and will continue to enjoy the dividends of the rapid development of the automotive industry in the future.
Downstream demand is strong, and the Internet of things has a strong growth momentum. Based on the turbox platform, the company’s Internet of things business provides integrated solutions for core computing modules, operating systems, algorithms and ADK. From the downstream demand side, the popularity of sweeping Siasun Robot&Automation Co.Ltd(300024) market remains unchanged, and medium and high-end services Siasun Robot&Automation Co.Ltd(300024) and industry Siasun Robot&Automation Co.Ltd(300024) are developing steadily; Facebook, Microsoft and other Internet giants have laid out meta universe one after another, detonating the AR / VR market; During the epidemic period, video conferencing software developed vigorously, automatic driving technology also promoted the penetration of vehicle mounted cameras, and there was a wide space for camera products; The downstream demand of consumer Internet of things is strong, and the industrial Internet of things is quietly rising. The company’s Internet of things business has broad market space for long-term development.
First coverage and “buy” rating: we believe that under the trend of interconnection of all things, the company has strong technical advantages, connects operating system, chip and terminal manufacturers, plays a unique role in the industrial chain, can adapt operating system, chip and terminal equipment, and has obvious advantages. It is estimated that the EPS from 2021 to 2023 will be 1.56/2.19/3.00 respectively, and the corresponding PE will be 96 / 68 / 50 times. We refer to the peer to give the company 85 times and 66 times PE in 22-23 years, respectively, with the corresponding market value of 79.5-84.5 billion yuan, and give the “buy” rating for the first time.
Risk tips: 1 Intensified market competition; 2. The shortage of chips has intensified; 3. Technology R & D is not as expected.
