Guangzhou Hi-Target Navigation Tech Co.Ltd(300177) (300177)
Driven by both technology and demand, the high-precision positioning market has great potential: the navigation and location information industry is a track that will never disappear, but will always integrate and transform. In 2020, the overall output value of China Spacesat Co.Ltd(600118) navigation and location services industry has reached 403.3 billion yuan, an increase of about 16.9% over 2019. Among them, the sales revenue of high-precision related products has reached 11.04 billion yuan in 2020, with a 10-year compound annual growth rate of nearly 26%. With the iteration of technology, the integration of satellite navigation system and traditional industries has deepened, and the development of “Beidou +” technology has spawned more business models, bringing new opportunities for the innovation and development of traditional industries. With the further combination of positioning technology with big data, cloud computing, artificial intelligence technology, intelligent manufacturing technology and Siasun Robot&Automation Co.Ltd(300024) technology in the future, the prosperity of high-precision positioning market application level will continue to improve.
After internal integration, the risk of financial fluctuation has decreased: since 2020, Guangzhou Hi-Target Navigation Tech Co.Ltd(300177) group has comprehensively adjusted its organizational structure, integrated marketing channels, centralized management, and established multiple business divisions to adapt to market development and changes and continuously improve the overall competitive advantage of the company. In recent years, the company’s sales and management expense ratio has continued to decline. With the further improvement of operating efficiency and the disposal of immature businesses, the company may release more profit space in the future. At present, the scale of goodwill of the company is declining, the performance of relevant subsidiaries is in the stage of steady growth, and the risk of goodwill impairment is low.
Based on the Beidou integrated technology, the company enjoys the industry development Dividend: after 20 years of development, the company has successfully extended from the traditional equipment manufacturing field to the middle and downstream industrial chain such as software, data acquisition and application, and industry comprehensive solutions, and set foot in the application scenarios of the whole Beidou industrial chain, finally forming today’s “sea, land, air, indoor and outdoor” all-round Full space high-precision positioning and comprehensive layout of the industrial chain. In the future, with the deep integration of Beidou + and other technologies, the downstream market will grow rapidly. As the leader of China’s high-precision GNSS, the company is expected to fully enjoy the dividends of industry growth and usher in a new period of rapid development.
In depth layout of intelligent driving, taking advantage of the transformation of new energy: the company deeply layout the Internet of vehicles track, and has great advantages in channel and technology. Vehicle mounted high-precision related products have been applied in Xiaopeng automobile, Saic Motor Corporation Limited(600104) and other automobile manufacturing enterprises and automatic driving solution providers. The company is also carrying out fixed-point testing of a number of intelligent vehicle on-board high-precision products, and has carried out in-depth technical cooperation and exchanges with many key vehicle enterprises and tire1 suppliers in China. With the gradual implementation of fixed-point models, relevant businesses are expected to grow explosively in the next two years.
Profit forecast and investment suggestion: as the leader of China’s high-precision GNSS, the company is expected to fully enjoy the dividend of industry growth, and the layout of the company’s intelligent driving track will also open new revenue growth space for the company. It is estimated that the operating revenue of the company from 2021 to 2023 will be RMB 1900 / 2442 / 2876 million respectively, with a year-on-year increase of 12.21% / 22.73% / 17.78%, and the net profit attributable to the parent company from 2021 to 2023 will be RMB 133 / 184 / 243 million respectively, with a year-on-year increase of 54.32% / 38.43% / 32.29%, corresponding EPS of RMB 0.18/0.25/0.33, and corresponding PE of the stock price on December 29 will be 52 / 37 / 28 times. For the first time, it will be rated as “overweight”.
Risk factors: the growth of location service track is less than expected; Technological innovation and industry change risks; The market competition of high-precision positioning equipment intensifies the risk; The expansion of intelligent driving market is less than expected risk.
