Autel Intelligent Technology Corp.Ltd(688208) (688208)
The company is a global automotive diagnostic manufacturer. The company’s products face the global market, including more than 70 countries and regions such as the United States, Europe, Japan and Australia. In 2020, the company’s revenue from North America accounted for 44.19% of revenue, the largest market, followed by Europe, Chinese mainland and others. In the first half of 2021, the company’s main business revenue in North America increased by 105.99% year-on-year, and the main business revenue in Europe increased by 102.30% year-on-year. The company’s Automotive comprehensive diagnostic products, TPMS products and software cloud services achieved rapid growth; The main business income in China and other regions increased by 32.61% year-on-year.
Fully layout the intelligent automobile. Facing more and more cars loaded with ADAS in the future, the company provides advanced driving assistance calibration system. For commercial vehicles, the company provides driving safety assistance products, including intelligent transformation assistance system and millimeter wave radar system. The former can help commercial vehicles turn, provide blind zone warning, have active safety function, and assist the driver in automatic braking; The latter helps commercial vehicles detect collision warning from all angles.
Charging pile is the company’s first product facing the new energy era. The layout of new energy is an important strategic direction of the company. In the face of different scenarios such as large-scale commercial, shopping mall commercial and household, the company provides different charging pile product series, which vary in size and charging speed, and adds maxicharge software management platform. The biggest feature of the company’s charging pile is intelligent battery detection technology, which can better improve the service life of the battery.
Equity incentive shows the company’s high growth confidence. The company announced a new phase of equity incentive (Draft), the number of restricted shares to be granted is 6.2 million, involving 216 technical and business backbones to be encouraged. Among them, the condition for 100% of the performance evaluation exercise target is that the operating revenue will increase by 50% / 125% / 238% compared with 2021 or the gross profit will increase by 50% / 125% / 238% compared with 2021, and the exercise number from 2022 to 2024 will be 30% / 30% / 40% respectively.
Investment suggestion: the company is a global automotive diagnostic manufacturer. The trend of intelligence and new energy in the automotive industry has become increasingly obvious, and the company has made a full layout. We expect that the company’s EPS from 2021 to 2023 will be 1.09 yuan, 1.55 yuan and 2.39 yuan respectively, covering the “buy” rating for the first time.
Risk warning: the landing of new energy products is not as expected; Industry competition intensifies.
