Navinfo Co.Ltd(002405) (002405)
The pioneer of China’s navigation map industry leads the era of “new four modernizations” of automobile
The company is a pioneer in China’s navigation map industry. Its business includes navigation, Internet of vehicles, on-board chips, advanced assisted driving and automatic driving, and location big data services. Facing the “new four modernizations” era of automobile, the company is committed to building a “smart automobile brain” with high-precision map, high-precision positioning, cloud service platform, vehicle specification chip and other businesses. From 2016 to 2020, the company’s operating revenue CAGR was 7.89%, showing a steady growth trend. The company has the ability of cross-border integrated development in the two cutting-edge fields of automobile and Internet, and has built an industry and data ecology around long-term and stable high-quality customers and partners.
The era of automatic driving is coming, and high-precision maps usher in a golden development period
China’s automatic driving industry is in a period of rapid development. According to the prediction of IHS, the penetration rate of level L3 and above automatic driving will reach 10% in 2025 and is expected to increase to 31% in 2030. Facing the demand of high-level automatic driving, the high-precision map industry is expected to usher in a rapid growth era. Analysys analysis predicts that China’s high-precision map market will reach US $3.2 billion in 2025, and CAGR will reach 33.1% from 2021 to 2025, with broad market prospects. High precision maps require huge initial investment, strong user stickiness and obvious industry barriers. Traditional cartographers with class a surveying and mapping and other relevant qualifications have significant first mover advantages.
Autopilot data management orders continued to land, opening up the company’s future growth space
With the data security act Several provisions on safety management of automobile data (for Trial Implementation) With the intensive release of such policies, the state has become increasingly strict in the supervision of the commercial operation of automobile data and networked data. Based on its deep understanding of the industry, the company provides data custody services for mass-produced vehicles and test vehicles for many car factories, and completes the delivery of data custody operation services. In November 2021, the company obtained the order of Daimler automatic driving data management service platform; In December, the company signed a service agreement related to automatic driving with Volvo, including data acquisition, processing and compliance services. The company continues to expand in the field of automatic driving. With the recognition of global head car manufacturers, the company has opened a long-term growth space in the field of automotive data.
Profit forecast and investment suggestions
The company firmly promotes the “smart car brain” strategy. Under the background of great changes in the automotive industry, there is a large growth space in the future. It is predicted that the operating revenue of the company from 2021 to 2023 will be RMB 2574, 3.080 and 3.710 billion, the net profit attributable to the parent company will be RMB 52, 215 and 439 million, the EPS will be RMB 0.02, 0.09 and 0.18/share, and the corresponding PE will be 659.67, 159.20 and 77.92 times. At present, the company has made great efforts to layout the era of intelligent driving, with more R & D investment, which has a great impact on the net profit. Therefore, the PS valuation method is more appropriate. In the past five years, the company’s PS has mainly operated between 8-20 times. Considering the future growth, the company is given a target PS of 15 times in 2022, and the corresponding target price is 19.46 yuan. Maintain the “overweight” rating.
Risk statement
Covid-19 recurrent pneumonia; Global chip supply is tight; The progress of new product research and development is less than expected; The implementation progress of automatic driving function L3 and above is less than expected: the industry competition is intensified, etc.
