Appotronics Corporation Limited(688007) (688007)
Event 1: the company announced on the evening of December 31 that Mr. Bo Lianming, the general manager, resigned due to physical reasons, Dr. Li Yi, the chairman of the board, served as the general manager, and introduced two new vice presidents, Zhang Wei and Liang guanning.
Event 2: on December 21, Huawei held an ecological Forum on smart car solutions, which announced: ① Appotronics Corporation Limited(688007) was listed as an excellent partner of Huawei’s smart car solutions; ② The vehicle mounted ceiling (roof immersion projection) of Appotronics Corporation Limited(688007) has been deployed in Huawei’s latest cockpit demo vehicle.
Management adjustment: introduce new blood and make cadres younger
From the perspective of stability: Dr. Li Yi is the core figure of the company, and President Bo still remains as a director of the company. Chairman Dr. Li Yi is the founder of the company’s patent and the leader of R & D, and will take over the general management in the future. Dr. Li Yi, who was also the general manager before general manager Bo took office in 2018, is familiar with the company’s operation and has a management foundation. Mr. Bo will continue to offer advice and suggestions for the company’s development in the board seat.
New executives: strengthen the legal and financial fields. Mr. Zhang Wei once served as legal director of Vanke and vice president of 360 Security Technology Inc(601360) group; It is expected that the company will continue to be mainly responsible for the company’s intellectual property legal business and strengthen the management of patent layout in the future; Mr. Liang guanning used to be a senior financial officer of poly GCL and Sina Weibo, Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) board secretary; It is expected that the follow-up will be mainly responsible for finance and investment. The two are 75-80 years old, which promotes the further rejuvenation of the overall leadership.
Vehicle projection business: new application scenarios are expected
Smart car is expected to become a new application scenario. With the improvement of intelligence such as unmanned driving, the main attribute of the car will no longer be “driving”, but “life”. Projection creates a “car theater” to meet the entertainment needs.
Jimi and Guangfeng strike first. At present, they mainly do entertainment immersion projection.
① Jimi: household products get on the bus directly. The cooperative Xiaopeng P5 was released in June 21. The cooperative fund is Jimi newz6x, which can not only watch movies in the car, but also be disassembled for camping outside.
② Guangfeng: customized development of special products. In December, it announced the cooperation with Huawei to customize and develop the vehicle ceiling. The product is still not released on the bus. Reference to HUAWEI’s tiktok video is projected to be a short focus projection + curved screen configuration.
Although the entertainment projection is optional, the value of a single car is expected to be high. With reference to the cooperation between Jimi and Xiaopeng, the optional projection (including screen) + refrigerator needs to be added 8000 yuan. The retail price of the cooperative single product market is about 3000 yuan, and the conservative estimate is that the value of a single vehicle is also more than 2000 yuan. According to the existing information, the cooperation funds between Guangfeng and Huawei may be dedicated screen + short focus projection, and the estimated value may be higher.
Company status tracking
Q4c end sales: referring to the business consultant’s monitoring, the sales of Q4 fengmi brand Amoy is 114 million, yoy + 53%. Holdings reduction: the latest Saif holdings were 4.38% (announced on November 26) and CITIC holdings were 4.99% (announced on December 16).
Investment suggestion: buy rating.
The company’s original laser fluorescence display underlying technology ALPD has multiple application scenarios and low permeability. We believe that laser replacing LED is the general trend of the industry, and will continue to strengthen with the localization and cost reduction of upstream devices; Guangfeng, as a laser advantage enterprise, will continue to benefit.
The vehicle is expected to open a new scene, the continuous launch of new products at the C-end is expected to promote large-scale production, and the profit forecast is adjusted. It is expected that the revenue in the 21st-22nd year will be 2.49 billion and 3.98 billion (the previous revenue will be 2.49 billion and 3.51 billion); Parent value of RMB 250 million and RMB 350 million (former value of RMB 250 million and RMB 320 million), yoy + 123% and + 38%.
Risk tip: the popularity of laser C-end is less than expected, the private brand is less than expected, and the industry competition is intensified
