Guangting information (301221)
Global developers of automotive software are given a “buy” rating for the first time
The company is a customized developer of automotive electronic software, with full domain and full stack development capability. Its business covers many fields, such as intelligent cockpit, intelligent motor, intelligent driving and so on. The company first laid out in Japan and established long-term cooperation with Japanese cars. With high-quality customer resources, the company is expected to fully benefit from the software defined automotive era in the future. We estimate that the net profit attributable to the parent company from 2021 to 2023 will be 83 million yuan, 117 million yuan and 166 million yuan respectively, with corresponding EPS of 0.90, 1.27 and 1.79 yuan / share respectively, and corresponding PE of current stock price of 104.7, 74.2 and 52.5 times respectively. For the first time, give a “buy” rating.
Software defines the automotive era, and the value of software increases
As the automotive industry enters the intelligent era, users pay more attention to the richness, convenience and interaction of software functions. Software has become a must for OEMs to provide differentiated services. At the same time, at the hardware level, the electronic and electrical architecture is facing a change from distributed to domain centralized, which not only improves the utilization of computing power and vehicle synergy, but also promotes the development of software defined vehicles. According to McKinsey, the proportion of software driven in the global vehicle content structure will increase from 10% in 2016 to 30% in 2030. Intelligence and networking are the general trend. The proportion and value of software in the content structure of the whole vehicle will increase rapidly. As an automotive electronic software developer, the company will fully benefit.
With high-quality customer resources, development has entered a new era
Zhu dunyao, the chairman of the board, is the controlling shareholder and actual controller of the company (the direct shareholding ratio after the issuance is 42%). Zhu dunyao obtained his doctor’s degree from the University of Tokyo and then engaged in automotive electronic software development in Japan for many years, laying the foundation for the accumulation of early customers of the company. The company took advantage of the talent and location advantages in Wuhan to jointly set up an offshore development center with customers (ODC) to establish long-term cooperation and continue to empower customers. Among the top five customers of the company, electric decoration, Faurecia, Japanese electric products, MSE and Nissan are all from Japan, accounting for 39% of Japan’s revenue in 2020. Japan’s automobile industry occupies an important position in the world. In addition to Japanese automobile manufacturers, Tier1 customers in Japan also include major vehicle manufacturers in Europe, the United States and China The resource advantages of customers will bring more business opportunities to the company. With the successful listing of the company, its development has entered a new period.
Risk tip: business and customer development is not as expected; Changes in industry competition pattern; The income was lower than expected.
