Navinfo Co.Ltd(002405) (002405)
Event overview
On the evening of December 15, Navinfo Co.Ltd(002405) issued the “announcement on the signing of high-precision map framework purchase agreement between Shanghai Navitas, a wholly-owned subsidiary, and Volvo cars”. The company will provide high-precision map products for Volvo cars’ relevant models sold in China in the next three years. The specific amount depends on the sales of Volvo cars’ relevant models produced in mass within the above period in China.
Analysis and judgment:
The leading position of high-precision map is recognized by leading car enterprises, and the main business is about to expand
1. As the leader of China’s high-precision map, 4D is the absolute leader with strong map ability, complete surveying and mapping qualification and significant advantages. Establish in-depth cooperative relations with leading enterprises and scientific research institutions at home and abroad such as Didi, Tencent, Huawei, here, Tsinghua University, Wuhan University and Beijing University of Aeronautics and Astronautics. The company’s products cover four map products to meet multi-level scenes and needs: the high-precision map is the intelligent driving map with centimeter precision. The signing of high-precision map framework purchase agreement with Volvo car is a heavy landing after BMW’s high-precision map order, showing the company’s position as a leader in the field of high-precision map.
2. In addition, the signing purchase also confirms the readiness of intelligent driving: Volvo, a leading car enterprise, has begun to lay out and purchase high-precision maps. We speculate that the intelligence and networking of flagship models of leading car enterprises have become a general trend in 2021, and this trend will become more and more intense in 2022. As one of the foundations of intelligent driving, high-precision map will open the market, which will help to further improve the revenue scale and profitability of map merchants’ Navinfo Co.Ltd(002405) ‘.
Data security platform + high-precision map supply, closed-loop opening of data business, and large-scale volume is imminent
In November this year, Navinfo Co.Ltd(002405) has won two Internet of vehicles data orders from Daimler and Volvo. In addition, on November 16, the Ministry of industry and information technology issued a document saying that it has begun to develop Internet of vehicles data security standards, and geographic information security compliance catalyzed by didi event is imperative. The previous signing of the Internet of vehicles platform was mainly based on the identity of the Navinfo Co.Ltd(002405) national team, coupled with its experience in the field of maps, so that its data security platform capability was recognized by leading brands.
The re cooperation with Volvo confirms that there is data closed-loop linkage between the data platform and high-precision map, and the leading position of Navinfo Co.Ltd(002405) under the business linkage is indestructible. First of all, the data platform is essentially to regularize the geographic information data obtained by the car factory’s online car on the road, so it is closely related to the map ability. This cooperation confirms that the car factory tends to buy a package of services from the cartographer: [data platform + high-precision map]. As the national team of China’s electronic map, Navinfo Co.Ltd(002405) has obvious advantages over its competitors. We believe that the closed-loop data reflected in this contract is opened, which is a guide for the further volume of Navinfo Co.Ltd(002405) follow-up business, and the ceiling of the company is opened.
Investment advice
Navinfo Co.Ltd(002405) as a leader in automotive intelligence with the background of the national team, it will give priority to benefiting from the Internet of vehicles data platform and the improvement of road traffic, passenger cars and other intelligence. The maintenance profit forecast is as follows: it is estimated that the operating revenue of the company from 2021 to 2023 will be RMB 26.8/32.8/3.99 billion, the net profit attributable to the parent company will be RMB 75 / 169 / 369 million, and the earnings per share (EPS) will be RMB 0.03/0.07/0.16, corresponding to the closing price of RMB 15.25/share on December 15, 2021. PE will be 483.6/214.5/98.2 times and PS will be 13.5/11.0/9.1 times respectively. It is highly recommended to maintain the “buy” rating.
Risk statement
1) Risk that business promotion is not as expected. 2) The risk of tight global supply of automotive chips. 3) Macroeconomic downturn risk.
