\u3000\u3 China Vanke Co.Ltd(000002) 405 Navinfo Co.Ltd(002405) )
Event: on the evening of March 30, 2022, the company released the 2021 annual performance express and 2022q1 performance forecast. In 2021, the company achieved a turnaround, with a total operating revenue of 3.06 billion yuan, a year-on-year increase of 42.48%, and a net profit attributable to the parent company of 122 million yuan, a year-on-year increase of 139.26%. 2022q1 will continue to turn losses into profits, and the net profit attributable to the parent company is expected to be 103782 million yuan ~ 134917 million yuan, an increase of 122.97% ~ 129.86% over the same period of last year.
In 2021, the four in one strategic transformation of “smart cloud + smart driving + smart cabin + smart core” of the company achieved results, and the main business income increased rapidly. During the reporting period, the company’s main revenue increased significantly: Zhiyun business benefited from the growth of sales of key models of major OEM customers and the accelerated implementation of location big data government enterprise cooperation projects, resulting in a significant increase in revenue; For the intelligent driving business, the company already has the product matrix and service capability of Tier-1, an integrated software and hardware solution for all scenarios, and the commercial mass production cooperation is increasing; Intelligent cabin business, intelligent cockpit series products and solutions integrating front loading software and hardware have been continuously recognized by the customers of the depot; For smart core business, the shipment and revenue contribution of vehicle specification MCU increased by more than 10 times year-on-year in 2020, and the shipment of other chip products increased steadily. Superimposed on the impact of the increase in the income of fixed and raised funds, the company will turn losses into profits in 2021.
2022q1 continued to turn losses into profits, and the business of Zhiyun and Zhixin bucked the trend and achieved substantial growth. During the reporting period, the sales volume of key models of the company’s main OEM customers increased and the big data service cooperation project accelerated. Therefore, even under the background of the sluggish performance of passenger car sales affected by the epidemic, the company’s Zhiyun business revenue still increased significantly; At the same time, facing the chip supply pressure, the company continued to optimize the 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.
The new business growth brought by the industrial trend of “new three modernizations” of automobile has been obvious, and the competitiveness of the company has been improved, which has been recognized by the orders of major automobile manufacturers. Business cooperation such as high-precision maps, automatic driving solutions and intelligent Internet connection for high-level automatic driving has increased significantly year-on-year, ADAS, automatic driving and Internet of vehicles have increased significantly compared with the same period, the traditional vehicle compliance navigation business has maintained growth, and the network security / data compliance restrictions brought by advanced automatic driving have spawned new market demand. According to several recent announcements of the company, after winning orders for high-precision maps, automatic driving data management, Internet of vehicles, LBS data compliance platform and other mass-produced vehicles such as Ford, Volvo and dailem, the company has opened cooperation with FAW Volkswagen in the fields of navigation, map data and online services.
Maintain the “buy” rating. The trend of intelligent automobile is clear, the market space is huge, and the high-precision map naturally has high barriers. As the leader of map navigation in China, the company has strong first mover advantages and technical advantages, and the marginal improvement of fundamentals is obvious. We predict that the company will realize a revenue of 3.06/39.35/5.022 billion yuan and a net profit of 121/4.42/661 million yuan from 2021 to 2023, maintaining the “buy” rating.
Risk warning: the risk that the technology iteration and R & D investment are less than expected; The risk of tight supply chain of automotive semiconductors; There is a risk of errors in key assumptions.
