Navinfo Co.Ltd(002405) (002405)
1、 Event overview
The company announced on the evening of December 15 that it signed a high-precision map framework procurement agreement with Volvo cars and will provide high-precision map products for Volvo cars’ relevant models sold in China in the next three years.
2、 Analysis and judgment
High precision map – a “guide” with “God’s perspective”
In the era of automatic driving, the word “map” has lost its meaning of traditional road map. The future “map” actually refers to a very accurate and constantly updated automatic driving environment model, and it is also a special map naturally serving automatic driving. Based on the practicability of its function, it is generally believed in the industry that high-precision map will be a “required option” for high-level automatic driving (L2 + and above).
Comprehensive advantages have been built from “base map – real time – RTK”
According to the division, the three core links of high-precision map can be roughly divided into: base map collection, real-time update and RTK Positioning. At present, the company has all-round advantages, among which, Base map: scarce surveying and mapping qualification (Surveying and mapping class a qualification) and surveying and mapping “completion” (covering 320000 km) is the basis that is difficult to be surpassed; real time: the company has deeply bound many car enterprises / travel service enterprises, and in the future, the cooperative vehicles will be equipped with the collection and processing platform of on-board sensor data and realize data sharing with them, which will also make the company “unique” in the high-precision map business Data ecological advantages; RTK Positioning: the core role of RTK Technology for high-precision map is to ensure the consistency between the actual position of the vehicle body and the map position, and its important technical support is mainly limited by the number of foundation stations. It is worth noting that Liufen technology of the company is establishing more than 2200 reference stations, which has strong barriers.
After the “Internet of vehicles cloud service platform”, it won the “high-precision map” project again, and the commercial closed loop has been formed
According to the contents of this announcement, it means that the company has realized the comprehensive replacement of the original graphic merchants under Volvo China models. We believe that the acquisition of this order not only reflects the company’s leading product power in the field of maps, but also a key step in the full formation of its commercial closed loop. We believe that “Internet of vehicles cloud service platform + high-precision map” will not only be platform construction, but also map supply. The deeper change of its profit model comes from “data management service”, that is, the cloud SaaS service model of “compliance + map + positioning”. According to the calculation, under the conditions of pessimism, neutrality and optimism, the corresponding incremental space of automobile data security business may reach 3.04 billion yuan / year, 6.07 billion yuan / year and 12.41 billion yuan / year respectively by 2025.
3、 Investment advice
It is estimated that the company will achieve a revenue of RMB 2.55/31.0/3.83 billion and a net profit attributable to the parent company of RMB 120 / 3.6/550 million in 21-23 years. The current market value corresponds to 101 / 66 times of PE in 22 / 23 years. Considering the business map of Navinfo Co.Ltd(002405) , we choose Westone Information Industry Inc(002268) as the comparable company of the company. At present, the PE level of the company in 22 / 23 years is lower than 110 / 80 times that in Westone Information Industry Inc(002268) 22 / 23 years. We believe that the company has the status of “national team” of automobile data security. Compared with Westone Information Industry Inc(002268) , the smart car market where the company is located has higher barriers in the fields of industry scale, entry threshold and so on. Therefore, the “recommended” rating is maintained.
4、 Risk tips
Impact of global auto market fluctuation; Upstream demand recovery is less than expected; The R & D process of new technology did not meet expectations
