Foryou Corporation(002906) (002906)
Core view
It is expected that the penetration rate of HUD will increase rapidly in the future. With the advent of the era of intelligent vehicle, HUD provides a new HMI window in the intelligent cabin and becomes the third screen of the intelligent cabin outside the instrument and vehicle machine. According to the data of Intelligent Automobile Research Institute of Gaogong, the carrying capacity of new HUD vehicles in the first half of 2021 was 503200, a year-on-year increase of 95.1%. Volkswagen, Audi, GM, Toyota, Honda, Geely, great wall, Weilai and AITO have all realized standard or optional configuration on their models. With the gradual improvement of HUD technology, its cost and display effect will continue to improve, enhance the acceptance of manufacturers, and the popularity of front loading will gradually increase.
HUD has a large market space, and the company ranks first in market share independently. It is estimated that considering the single vehicle value, annual decline, passenger vehicle sales volume and penetration rate, it is estimated that China’s HUD market space will be about 14.52 billion yuan in 2025, with an average compound growth rate of 70% from 2021 to 2025, and the global HUD market space will be 33.82 billion yuan in 2025, with an average compound growth rate of 45% from 2021 to 2025. At present, the proportion of foreign investment in China’s HUD industry participants is high. The company’s HUD market share in the first half of 2021 is 14.4%, ranking third and ranking first among independent brands. With the expansion of customers, it is expected that the company’s market share will still increase.
HUD competitive advantage of the company. The industrial chain is complete. At the optical technology end, Huayang photoelectric energy provides support for HUD’s LED light source; Huayang digital special can play a supporting role in chip and lens matching, software debugging, etc. The company has the mass production capacity of TFT + DLP dual line ar-hud, and the next generation products are expected to apply dual optical path, optical waveguide and other technologies. It can solve the problem of sunlight backflow, and has the core technology and algorithm ability. It has the collaborative advantages of automotive electronics, precision die casting and LED lighting, and has the ability of rapid response. Ar-hud and cockpit domain controller products will form a good linkage effect and reflect the synergistic effect.
HUD is expected to be the elasticity of profit growth. Supporting independent customers from Great Wall to Chang’an, Chery and GAC; From independent customers to joint venture and foreign customers, such as Dongfeng Nissan, Dongfeng Honda, Vietnam vinfast, etc. It is estimated that the proportion of HUD revenue from 21 to 23 years will be about 7.5%, 16.25% and 20%. It is expected that in the future, with the increase of supporting quantity and customer expansion, its revenue will increase rapidly and the proportion of revenue will also increase rapidly.
Financial forecast and investment suggestions: it is predicted that the company’s EPS from 2021 to 2023 will be 0.66, 0.95 and 1.23 yuan respectively, which can be compared with the company’s pe75 times in 22 years. The PE valuation will be 75 times in 22 years, and the corresponding target price will be 71.25 yuan, maintaining the buy rating.
Risk tips: the supporting volume of automotive electronics business is lower than expected, the precision die casting business is lower than expected, the market space calculation of HUD industry and the supply of automotive chips
