Hangzhou Hopechart Iot Technology Co.Ltd(688288) (688288)
[matters]
On December 31, 2021, the National Standards Committee issued announcement No. 17 of 2021, in which the new standard of vehicle traveling data recorder will be officially implemented from July 1, 2022. The heavy truck traveling data recorder market is an important source of revenue for the company and will directly benefit from the implementation of the standard.
[comment]
On December 31, 2021, the National Standards Committee issued China national standards Announcement No. 17 of 2021, approving the announcement of 530 recommended national standards and 2 amendments to national standards. Among them, the new standard GB / t19056-2021 of automobile traveling data recorder will replace GB / t19056-2012 and will be officially implemented from July 1, 2022.
In July 2019 and February 2021, the Ministry of Public Security issued the draft for comments on the standard of vehicle traveling data recorder. Compared with the old version, the new standard adds audio and video recording, WiFi communication, wireless public network communication, automatic timing, driver identification and other functions, and the positioning requirements are further enhanced. Although the National Standardization Administration Committee only released the specific implementation time of the new standard and did not release the detailed content of the standard, according to past experience, we expect that the requirements of the official document of the new standard for vehicle traveling data recorder on the product of traveling data recorder will be basically consistent with the content of the draft for comments. In the investor Research Report in April 2021, the company said that if the new standards in the exposure draft were followed, the unit price of new products would be increased by about three times. According to the company’s relevant business income and sales volume in 2020, the current unit price of driving recorder is about 500 yuan, and the product unit price under the new standard is expected to reach 1500 yuan. From the perspective of the space for price increase, after the implementation of the new standard of automobile traveling data recorder, the space of the segment market is expected to be greatly improved, and the company will benefit significantly. It is estimated that the operating revenue of the company from 2021 to 2023 will be 459 million yuan, 791 million yuan and 1092 million yuan, the net profit attributable to the parent company will be 49 million yuan, 122 million yuan and 191 million yuan, the EPS will be 49 million yuan, 121 million yuan and 191 million yuan, and the corresponding PE will be 82 times, 33 times and 21 times respectively. We are optimistic about the future performance of the company and maintain the “buy” rating.
[risk tips]
The sales volume of commercial vehicles is lower than expected;
The price increase of new products under the new standard is less than expected;
Intensified market competition;
The company’s new customer development progress is less than expected.
