On April 8, the Ministry of transport and the Ministry of science and technology publicly released the “14th five year plan” for scientific and technological innovation in the transportation field, proposing that by 2025, technologies such as automatic driving will be demonstrated and applied in some scenes, and the investment in intelligent driving industry is still a smooth road.
At present, Beijing Jingwei Hengrun Technology Co., Ltd. (hereinafter referred to as “Jingwei Hengrun”) is one of the few enterprises in China that can realize the coverage of intelligent driving electronic products, R & D services and solutions and high-level intelligent driving overall solutions. Some core products and services break the foreign monopoly, and the technical level and market position are in a leading position among Chinese suppliers.
On April 6, the company announced the issuance announcement, priced at 121.00 yuan / share, corresponding to 244.87 times of PE issued, and announced the issuance results on April 12.
2021 performance increased by 87.83%, 97.60 times after deducting share based payment PE
Since March, the Shanghai Composite Index and Shenzhen composite index have fallen sharply, and the bottom has been ground. Kechuang 50 has continued to decline and has not stabilized. With the interference of the Fed’s interest rate increase and contraction, the panic that GDP does not meet expectations and the fear of economic recovery under the repeated epidemic, the current market is dominated by sentiment, and this sentiment is also transmitted to the primary market.
According to the announcement of issuance results released by Jingwei Hengrun, the number of shares subscribed by online investors is 6.466 million, accounting for 66.30% of the number of online issuance, the subscription amount is 775 million yuan, the number of abandoned subscriptions is 3.2609 million shares, and the amount of abandoned subscriptions is 395 million yuan. When the overall market environment continues to be depressed, the amount of abandoned subscriptions by investors is relatively high.
However, the more emotional disturbance, independent thinking is particularly important.
The IPO price of the company is 121 yuan / share, and the issue price earnings ratio is 244.87 times. However, the price earnings ratio of the issue corresponds to the net profit deducted from non parent company in 2020.
According to the latest prospectus released by the company on April 12, the company’s revenue reached 3.262 billion yuan in 2021, with a year-on-year increase of 31.61%, and the net profit deducted from non parent company reached 111 million yuan, with a year-on-year increase of 87.83%. Therefore, based on the net profit deducted from non parent company in 2021, the corresponding P / E ratio of the company was 130.37 times.
In addition, since Jingwei Hengrun set up an employee stock ownership platform before the issuance and listing, there was a large amount of share based payment expenses during the reporting period. According to the answers to some questions on initial business issued by the CSRC, “for share based payment in the set service period, the share based payment expenses should be apportioned in the service period by appropriate methods and included in the recurring profits and losses”.
The appendix to the prospectus shows that the share based payment fee of the company in 2020 is 321819 million yuan and that in 2021 is 373899 million yuan.
Therefore, if the impact of share based payment fees is excluded when calculating the P / E ratio of the issuance, the P / E ratio of the issuance corresponding to the issuance price is 158.73 times (2020) and 97.60 times (2021).
The inquiry process is to better reflect the internal value of the enterprise, but the higher issue price does not necessarily lead to the break, which is also proved by the case of “the most expensive new shares in history”.
On December 9, 2021, Kemai shares (688032. SH), an enterprise on the science and innovation board, released the inquiry results. The issue price was 557.80 yuan / share. After the issue, the PE reached 225.94 times. Online investors gave up the subscription of 651400 shares, accounting for 6.51%, and the amount reached 363 million yuan.
However, on the first day of listing, the company once rose to 824 yuan / share, an increase of 47.72%, and the final closing price was 725.01 yuan / share, an increase of 29.98%. If the company subscribes and sells at the high point of 824 yuan / share, investors can make a profit of 133100 yuan per sign.
In the current sluggish market environment, the share price of Hemai shares has also been adjusted recently, but the latest closing price still reached 616.99 yuan / share, far exceeding the IPO pricing.
break the foreign monopoly and take the second place in the market share of ADAS products
Despite the above conditions, the core of investing in an enterprise is still the internal value and growth driving force of the enterprise, not the valuation, because with the continuous growth of the enterprise and the enhancement of profitability, the enterprise valuation will further match, and Jingwei Hengrun has good business performance in the past and has great growth.
From the operating data, from 2018 to 2021, the company’s operating revenue increased steadily to 3.262 billion yuan, with a three-year compound growth rate of 28.46%; The company turned from loss to profit. In 2021, the net profit attributable to the parent company reached 146 million yuan, with a three-year compound growth rate of 91.56%.
Behind the high growth is the enterprise competition barrier constructed by enterprises’ continuous investment in R & D.
Since its establishment in 2003, Jingwei Hengrun has been facing the rapid technological innovation in the field of automotive electronics, closely tracking the industrial change trend and the core needs of downstream customers, pre researching new technologies, exploring new breakthroughs, and always adhering to independent R & D and continuous R & D investment. From 2018 to June 30, 2021, Jingwei Hengrun invested a total of 1.129 billion yuan in R & D, and the average R & D expense rate of each period in the reporting period was 15.65%.
During the reporting period, the proportion of personnel with master’s degree or above has always been more than 50%, of which 55.48% in 2020, much higher than that of comparable companies.
The long-term R & D investment has achieved remarkable results. As of June 30, 2021, Jingwei Hengrun and its subsidiaries have obtained 1477 authorized patents, including 617 invention patents, accounting for 41.77% of all patents.
Supported by the strong R & D strength of the company, the technical level of the company has been continuously improved, the business field has been continuously expanded, and the market share has been rapidly occupied.
At present, the company is one of the few enterprises in China that can realize the coverage of intelligent driving electronic products, R & D services and solutions and high-level intelligent driving overall solutions. Some core products and services such as enterprise ADAS break the foreign monopoly and realize import substitution. The technical level and market position are in the leading position in the industry.
According to the statistics of zoth automotive research, in 2020, the company ranked eighth among the suppliers of front view system for new passenger cars in China, and was the only local enterprise among the top ten suppliers; [1] According to the statistics of Intelligent Vehicle Research Institute of Gaogong, the market share of ADAS early warning products of heavy tractor ranks first in the market. [2] Under the wave of electrification, intellectualization and domestic substitution, the company’s capability boundary has been continuously expanded. It has broken through the boundary of traditional automotive electronics suppliers and realized the delivery of port L4 unmanned fleet scheme, with huge growth space in the future.
In addition, the company has high-quality resources to further ensure the continuous growth of downstream customers.
Since 2014, the company has successively obtained CNAs laboratory accreditation qualification, SGM gp-10 certification, Geely supplier laboratory certification, Great Wall supplier laboratory certification, etc. The business is oriented to FAW Group, Sinotruk Jinan Truck Co.Ltd(000951) , Saic Motor Corporation Limited(600104) , Guangzhou Automobile Group Co.Ltd(601238) , Geely Automobile, Navistar and other complete vehicle manufacturers at home and abroad, as well as international well-known automobile first-class suppliers such as inefa, antonglin and borgwana. At the same time, it has won customers in the field of high-end equipment such as COMAC, Crrc Corporation Limited(601766) and customers in the field of unmanned transportation such as Rizhao Port Co.Ltd(600017) .
intelligent driving long slope heavy snow: Jingwei Hengrun is expected to gain a higher market share
With the vigorous development of China’s automobile industry, the competent department of the industry has issued a series of relevant policies related to intelligent manufacturing and industrial upgrading in the field of traditional automobile to support the development of automobile intelligent and electric related industries, providing a good policy environment and strong policy support for the development of automobile electronics related industries.
Jingwei Hengrun, as one of the few enterprises in China that can realize the coverage of intelligent driving electronic products, R & D services and solutions, and high-level intelligent driving overall solutions, is undoubtedly one of the most powerful competitors.
On the latest March 14, Tianfeng Securities Co.Ltd(601162) released a special research report on the intelligent vehicle industry, which also expressed its optimism for the intelligent driving industry and Jingwei Hengrun.
In the report, it is estimated that the total sales volume of Chinese cars will reach 30 million in 2025, and the CArG will reach 3.5% in five years; McKinsey predicts that under the trend of electrification and intelligence, the global automotive electronics market is expected to reach US $362 billion in 2025, and the CAGR will reach 8.7% in five years. With the continuous progress of automatic driving technology, the commercialization of high-level intelligent driving has accelerated.
With the gradual maturity of the technology of China’s independent automotive electronic suppliers and the continuous improvement of the intelligent technology demand and iteration speed of vehicle manufacturers, China’s independent suppliers have begun to make breakthroughs in the field of automotive electronics and even high-level intelligent driving. Independent suppliers represented by Jingwei Hengrun, Huizhou Desay Sv Automotive Co.Ltd(002920) and other companies began to gain a higher share in ADAS products such as front view and look around.
