\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 27 Shanghai Huace Navigation Technology Ltd(300627) )
Event:
Recently, the company released the performance express of 2021. In 2021, the company achieved an operating revenue of 1.92 billion yuan, a year-on-year increase of 36%; The net profit attributable to the parent company was 292 million yuan, a year-on-year increase of 48%; The net profit attributable to the parent company after non deduction was 227 million yuan, a year-on-year increase of 50%.
Key investment points:
The company achieved high growth in Q4 performance: according to the calculation of the performance express, the company achieved a revenue of 650 million yuan in Q4 single quarter in 2021, with a year-on-year increase of 14.56% and a month on month increase of 56.85%; The net profit attributable to the parent company was 114 million yuan, with a year-on-year increase of 31% and a month on month increase of 68.84%. In 2021, the company realized a net profit attributable to the parent company of 292 million yuan, slightly higher than the median value of the previous performance forecast. Focusing on the core technology of high-precision navigation and positioning, the company continues to build a high-precision positioning chip technology platform and a global satellite earth integrated enhanced network service platform. The application directions include navigation and positioning timing, surveying and mapping and geographic information, and unmanned driving in closed and semi closed scenes. In 2021, the company's main businesses, such as surveying and mapping, displacement monitoring, UAV, unmanned ship and automatic driving of agricultural machinery, have achieved steady growth.
Sustained high proportion of R & D investment and consolidated the technical moat: in 2021, the company focused on the layout of the upstream industrial chain, including core basic components such as GNSS chip ("Xuanji"), OEM board and antenna, further improved the core technical advantages such as high-precision GNSS algorithm, integrated navigation, SWAs wide area enhancement and precise orbit determination, strengthened technical strength and consolidated technical barriers. In 2021, H1 company has applied for more than 800 intellectual property rights, including more than 500 patents, more than 300 invention patents and more than 500 authorized independent intellectual property rights, including more than 200 patents and nearly 100 invention patents, which is at the forefront of the industry, laying a solid technical foundation for the long-term development of the company. In the first three quarters of 2021, R & D expenses accounted for 18.45% of revenue, belonging to a high level in the same industry.
Auto driving high-precision positioning is expected to become a new highlight of the company in the future: high-precision positioning is the key to realize L3 and higher-order automatic driving. Many car companies have taken the lead in carrying it and appeared in major auto exhibitions in 2021. Auto driving will accelerate the penetration from L2 to L3 in the next three years. In 2021, the company successively won the fixed-point of high-precision positioning units of many auto enterprises, including Byd Company Limited(002594) , great wall, Nezha and gillelutes. It is expected to bring performance increment to the company in 2022. As the subject of Beidou navigation application + automatic driving of passenger cars, the company is expected to obtain the value revaluation of the capital market in the future.
With the development of core technology autonomy, overseas markets have ushered in greater development space: China's high-precision satellite navigation and positioning industry chain has initially taken shape, Chinese manufacturers have risen in the development of core technology autonomy, and the cost performance advantage of products is becoming more and more obvious. With the development of one belt, one road has been successfully applied in ASEAN, South Asia, Eastern Europe, Western Asia and Africa based on the compass of land rights, precision agriculture, intelligent construction and intelligent port. The company adheres to the marketing strategy of "distributing the whole country and expanding overseas", and has established a strong dealer network overseas. It is expected that the company will usher in greater development space overseas, and its share in the global GNSS market will continue to increase in the future.
For the first time, the company was given an "overweight" investment rating: the application of China's high-precision satellite navigation industry has benefited from policy, technology and cost driven, and has developed rapidly in recent years. As an old high-precision positioning leading enterprise, the company has the ability to integrate the upstream and downstream of the industrial chain, maintain market leadership in multiple application fields, and the auto driving business has great growth potential. It is estimated that the net profit of the company from 2021 to 2023 will be RMB 292 / 390 / 535 million respectively, and the EPS will be RMB 0.77/1.03/1.41 respectively, corresponding to the current PE valuation of 45.3/33.8/24.7 times respectively. It will be covered for the first time, and the company will be given the "overweight" investment rating.
Risk tip: there is a risk that the development of automatic driving business is not as expected, the new track technology is updated, and the strength of Beidou related subsidy policies is declining.
