\u3000\u3 China Vanke Co.Ltd(000002) 405 Navinfo Co.Ltd(002405) )
Event: on March 30, Navinfo Co.Ltd(002405) released the performance forecast for the first quarter of 2022. In 2022q1, the company expects to realize the net profit attributable to the parent company of 103782134917 million yuan, with a year-on-year increase of 122.97% - 129.86%, and realize the deduction of non net profit of 1 Asymchem Laboratories (Tianjin) Co.Ltd(002821) 30367 million yuan, with a year-on-year increase of 122.21-128.88%.
Comments:
In the first quarter, the net profit turned from loss to profit, and the smart cloud business increased significantly. In 2022q1, the company expects to realize a net profit attributable to the parent company of 103782134917 million yuan, a loss of 4518891 million yuan in the same period of last year, and a profit in the first quarter after the epidemic. In the industry environment in which the sales volume of passenger cars is depressed due to the impact of the epidemic, benefiting from the growth of sales volume of key models of major OEM customers and the accelerated promotion of big data service cooperation projects, the company's smart cloud business revenue has increased significantly; At the same time, in terms of smart core business, facing the great changes in the global chip industry, the company continued to optimize supply chain management, accelerated the expansion of the customer scale of vehicle specification MCU product line, and its shipment volume and revenue contribution increased significantly year-on-year.
Customer recognition has been continuously improved, and multiple orders have been signed one after another. With the rapid development of the intelligent automobile industry and the continuous improvement of the company's competitiveness, the company's operation continues to maintain a good development trend. Since 2021, the company has successively obtained orders and fixed points from many well-known automobile manufacturers and system providers, including Mercedes Benz, BMW, Volkswagen, Volvo, Ford and alpai China. It has continuously improved its recognition among major automobile manufacturers and new forces, and its map, compliance, automatic driving and other businesses have entered China's top independent brands.
MCU shipments are growing rapidly, and domestic chips are expanding. In terms of automotive electronic chips, the company's vehicle specification MCU shipment and revenue contribution increased more than ten times year-on-year in 2020, and the shipment of other chip products increased steadily. In the first quarter of 2022, the first functional safety MCU - ac7840x was returned in advance and successfully started to light up. It is expected to be officially mass produced by the end of 2022, which is expected to further expand the application of domestic MCU in the field of automotive electronics.
The strategy focuses on automatic driving and automotive chip business. Facing the macroeconomic situation and changes in the industry, the company actively adjusts its organizational structure. The current strategy focuses on new businesses such as automatic driving and automotive chips. In 2021, the company completed a fixed increase of 4 billion yuan for projects such as intelligent Internet connected automobile chip, automatic driving map application development and automatic driving exclusive cloud platform, so as to continuously enhance its core competitiveness.
Investment suggestion: the company has focused on the map industry for many years and enjoys the first mover advantage of technology and policy dividend. At the same time, with the promotion of data security and domestic substitution, the business increment of automatic driving and automobile chips can be expected. We expect the company's revenue in the 21st-23rd years to be RMB 3.060 billion, RMB 3.998 billion and RMB 5.090 billion respectively, and the net profit attributable to the parent company to be RMB 122 million, RMB 325 million and RMB 582 million respectively, with growth rates of 139.3%, 167.8% and 78.9%. Maintain the "buy" rating.
Risk warning: the recovery of upstream demand is less than expected; Technology research and development is not as expected; Policy promotion is less than expected; Industry competition intensifies; Litigation risk
