\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 96 Thunder Software Technology Co.Ltd(300496) )
Matters:
The company issued the annual report of 2021. In 2021, the company achieved an operating revenue of 4.127 billion yuan, a year-on-year increase of 57.04%; The net profit was 647 million yuan, a year-on-year increase of 45.96%; It is proposed to pay a cash dividend of 3.05 yuan for every 10 shares.
Ping An View:
The company has benefited from the arrival of the era of intelligence, and all businesses have achieved rapid growth. The company is a leading operating system manufacturer in China, and continues to layout and invest in the fields of smart phones, smart connected vehicles and the Internet of things. In recent years, with the acceleration of digitization and intellectualization, 5g, smart car and Internet of all things have brought new business opportunities to the company and the rapid growth of the company’s business in recent years. According to the annual report data, the average growth rate of the company’s revenue from 2018 to 2021 reached 37.27%, and the growth rate of revenue has accelerated in the past three years. In terms of business, the intelligent software business achieved an operating revenue of 1.631 billion yuan, a year-on-year increase of 40.33%, with a significant increase of 20.09 percentage points over the same period of last year; The business income of intelligent Internet connected automobile business was 1.224 billion yuan, a year-on-year increase of 58.91%; The intelligent Internet of things business realized an operating revenue of 1.272 billion yuan, a year-on-year increase of 82.87%. In contrast, the business of intelligent connected vehicles and intelligent Internet of things has maintained a rapid growth momentum after experiencing high growth in the previous year; The intelligent software business is significantly better than expected. The new demand brought by 5g and the change of software engineering industry have created a lot of business needs for the company.
The car intelligent cockpit operating system has strong competitiveness, and the automatic driving business has made progress. As an operating system manufacturer, the company’s ecosystem is very important. As a member of Qualcomm and other chip ecosystems, with the application expansion of chip manufacturers, the company’s business boundary extends from mobile phones to car cockpits, and then to the current automatic driving track. Qualcomm’s 8155 cockpit chip is at the peak of shipment in the past two years, and the demand for the corresponding operating system, middleware and tool chain has maintained a high growth. At the same time, research and development based on Qualcomm’s latest cockpit chip 8295 is also under way, which will become an important source of the company’s cockpit revenue in the next few years. Compared with the mature cockpit market, the deployment of the company’s autopilot business is also accelerating. On the one hand, it is doing low-speed autopilot based on cockpit computing power redundancy, such as automatic parking, look around, etc; On the other hand, the company is also following Qualcomm’s latest ride computing platform to make efforts in the field of high-speed automatic driving. There are already vehicle manufacturers in China to deploy ride platform, and the company will also benefit in this field. On the whole, we believe that the business layout of the company is highly consistent with the current intelligent vehicle and the subsequent automatic driving, and the growth is worth looking forward to.
Start projects such as RMB 3.1 billion fixed increase and overweight on-board operating system. While publishing the annual report, the company announced the plan for private placement. According to the plan, the company will issue shares to specific objects and plans to raise no more than 3.1 billion yuan for vehicle operating system R & D projects, edge computing station R & D and industrialization projects, extended reality (XR) R & D and industrialization projects, distributed computing network technology R & D projects and supplementary working capital. In terms of specific projects, the overall investment in the vehicle operating system is 1.005 billion yuan, of which 650 million yuan is raised. Through the vehicle operating system project, the company plans to lay out the next generation of intelligent vehicle operating system in advance, research and develop vehicle HPC system components, and develop mattrans intelligent vehicle operating system to meet the system needs of intelligent vehicle as an “edge node”. In addition, 1.005 billion yuan of the company’s funds raised this time are invested in the research and development of edge computing stations, which means that the company will start to expand to the field of underlying hardware based on its ability in operating system, middleware and other software.
Investment suggestion: the company has strong competitiveness in the field of operating system, and its products and services have been widely used in smart phones, smart cars, IOT and other sectors. In the follow-up, with the continuous layout of automatic driving business and the project construction in the fields of vehicle operating system, edge computing and extended reality, the company’s ability circle in intelligence will be further enlarged. Based on the latest financial report of the company and the judgment of the industry trend, we adjusted the profit expectation of the company. It is estimated that the net profit of the company from 2022 to 2024 will be 882 million yuan (the previous value is 843 million yuan), 1.210 billion yuan (the previous value is 1.106 billion yuan), 1.604 billion yuan (New), and EPS will be 207 yuan, 285 yuan and 377 yuan respectively, corresponding to PE on March 3, 62.8x and 45.7x and 34.5x, maintaining the “strongly recommended” rating.
Risk tips: 1) the development of intelligent vehicles is not as expected. 2) 5g promotion was not as expected. 3) Poor product technology research and development.
