This week’s view:
I. The auto industry chain is about to resume production, and intelligent driving is the first choice
The automobile industry is an important pillar industry of the national economy. In order to deal with the sluggish automobile supply chain caused by the epidemic, the Ministry of industry and information technology officially launched the “smooth supply chain coordination platform of automobile industry chain” on April 11. The impact of the epidemic on the automobile industry chain is mainly concentrated in Jilin, Shanghai and other regions. Jilin has been completely cleared, BMW resumed production on April 14 and FAW resumed production on April 15. Shanghai may resume work and production for some pillar and livelihood enterprises. According to public information, Weilai announced the gradual resumption of work on April 14, and SAIC started the pressure test of resumption of production on April 18. With the active promotion of all parties and all parties, the industrial chain is expected to gradually resume work and production. The valuation of intelligent driving software companies fluctuated due to the expected impact, but the actual business impact is small, and the stock price is expected to take the lead in benefiting from the reversal of market expectations.
II Beijing Compass Technology Development Co.Ltd(300803) : Q1 performance exceeded expectations and the reorganization process is progressing smoothly
The company released the first quarterly report of 2022. During the reporting period, the company achieved a revenue of 623 million yuan, a year-on-year increase of 89.51%; The net profit attributable to the parent company was 267 million yuan, a year-on-year increase of 176.5%. The gross profit margin increased by 4.21pct to 94.01%. The net operating cash flow was 550 million yuan, a year-on-year increase of 141.5%. The company’s financial information service business has achieved rapid growth. On the one hand, the company’s customers are mainly individual investors and have a strong demand for financial information software; On the other hand, the company adopts experiential marketing to implement accurate sales to users, and customers’ willingness to pay and loyalty continue to improve.
The company’s reorganization process of Wangxin securities is progressing smoothly. We believe that if the company successfully acquires wechat securities, on the one hand, it will help to broaden the company’s customer acquisition channels. On the other hand, the company will transform into an Internet brokerage, and the company will obtain business qualifications such as fund consignment and asset management, which will greatly enhance the company’s professional ability to provide wealth management for customers and open a new revenue growth curve.
III. investment suggestions: focus on Beijing Compass Technology Development Co.Ltd(300803) & Navinfo Co.Ltd(002405) & Thunder Software Technology Co.Ltd(300496) & Huizhou Desay Sv Automotive Co.Ltd(002920)
1) Beijing Compass Technology Development Co.Ltd(300803) : it is expected to replicate the development path of China stock market news and usher in exponential growth. In 2022q1, the company achieved a revenue of 623 million yuan, a year-on-year increase of 89.51%; The net profit attributable to the parent company was 267 million yuan, a year-on-year increase of 176.5%, with outstanding growth. The company’s financial service business has entered the fast lane of development.
2) Navinfo Co.Ltd(002405) : high precision map + chip + data compliance multi driver. As a high-precision map “national team”, it is expected to leverage the penetration of high-precision map business with data compliance business and extend to the upper level of automatic driving based on map data.
3) Thunder Software Technology Co.Ltd(300496) : release Qualcomm 8295 intelligent cockpit solution, and intelligent driving opens the second growth curve. On the one hand, it maintains the card position advantage formed by cooperation with Qualcomm, on the other hand, it sets up a new company to show its determination to enter automatic driving.
4) Huizhou Desay Sv Automotive Co.Ltd(002920) : deeply plough NVIDIA computing platform, and have released domain controllers that support L3 or above. The company has maintained in-depth cooperation with many leading car manufacturers, and at present, the company’s latest domain controller products have supported automatic driving of L3 and above. (jointly covered with Huaxi Automobile Group).
Investment advice
Reiterate that we are firmly optimistic about the leading companies with card advantages in cloud computing SaaS, energy it, financial technology, intelligent driving, artificial intelligence and other prosperous tracks, and actively recommend the following seven investment lines: 1. Cloud computing SaaS: focus on recommending enterprise SaaS leader Yonyou Network Technology Co.Ltd(600588) , office software leader Beijing Kingsoft Office Software Inc(688111) (joint coverage with small and medium-sized markets), and super Integration Leader Sangfor Technologies Inc(300454) . 2. New energy it: focus on recommending energy SaaS leader Longshine Technology Group Co.Ltd(300682) (joint coverage of communication group), distribution network dispatching pioneer Dongfang Electronics Co.Ltd(000682) , domestic energy BIM software leader Beijing Forever Technology Co.Ltd(300365) . 3. Fintech: focus on recommending securities it Hundsun Technologies Inc(600570) . In addition, Yusys Technologies Co.Ltd(300674) , Shenzhen Sunline Tech Co.Ltd(300348) , Hithink Royalflush Information Network Co.Ltd(300033) , all welcome the upswing of the economy. 4. Intelligent driving: the vehicle OS leader Thunder Software Technology Co.Ltd(300496) , the intelligent cockpit leader Huizhou Desay Sv Automotive Co.Ltd(002920) (joint coverage of vehicle groups) and the high-precision map leader Navinfo Co.Ltd(002405) are recommended as the key benefit targets. 5. Artificial intelligence: recommend intelligent voice faucet Iflytek Co.Ltd(002230) . 6. Network security: focus on recommending emerging security double leaders Qi An Xin Technology Group Inc(688561) + Sangfor Technologies Inc(300454) , Dbappsecurity Co.Ltd(688023) as a subdivided emerging security leader, which will also benefit deeply. Other beneficiaries include: Venustech Group Inc(002439) , Xiamen Meiya Pico Information Co.Ltd(300188) , etc. 7. Xinchuang: domestic WPS leading manufacturer Beijing Kingsoft Office Software Inc(688111) (jointly covered with small and medium-sized disk groups), domestic middleware leading Beijing Tongtech Co.Ltd(300379) , domestic PDF leading Fujian Foxit Software Development Joint Stock Co.Ltd(688095) , domestic server leading Dawning Information Industry Co.Ltd(603019) .
Risk tips
Market systemic risks, the landing of scientific and technological innovation policies is less than expected, and the game between China and the United States is an emergency.
