\u3000\u3 China Vanke Co.Ltd(000002) 920 Huizhou Desay Sv Automotive Co.Ltd(002920) )
Event:
Huizhou Desay Sv Automotive Co.Ltd(002920) released the annual report of 2021 and the first quarterly report of 2022. The performance reached a new high and the leading position in the industry was stable. In 2021, the company achieved an operating revenue of 9.569 billion yuan, a year-on-year increase of 40.75%, and a net profit attributable to shareholders of listed companies of 833 million yuan, a year-on-year increase of 60.75%. In the first quarter of 2022, the company achieved an operating revenue of 3.142 billion yuan, a year-on-year increase of 53.86%, and a net profit attributable to shareholders of listed companies of 318 million yuan, a year-on-year increase of 39.22%.
Investment summary:
Huizhou Desay Sv Automotive Co.Ltd(002920) focuses on three areas: intelligent cockpit, intelligent driving and Internet service. The company's customer structure has been optimized year by year, and the mainstream customers have made breakthroughs one after another. The core customer groups include mainstream foreign capital, independent brands and new forces of head car making. The sales volume of intelligent cockpit and cockpit products increased by more than RMB 12 billion year-on-year, and the sales volume of intelligent cockpit and cockpit products exceeded the historical high of RMB 12 billion in 2021. In 2021, the company invested nearly 1 billion yuan in R & D, the R & D rate remained above 10%, and the number of R & D personnel increased by nearly 30% year-on-year. The gross profit margin was 24.6%, with a year-on-year increase of 1.21 PCT, and the scale effect became more and more obvious. In the first quarter of 2022, due to the rise of raw materials and the adverse impact of the epidemic, the revenue fell by only 3.8% month on month, and the gross profit margin remained at a high level of 23.96%, exceeding market expectations. Benefiting from excellent operating and management rate control, the net interest rate in the first quarter increased to 10.03% from 8.69% in 2021.
Smart cockpit: the cockpit business increased by 33.52% year-on-year, with a gross profit margin of 24.45%, an increase of 0.43pct compared with 2020. The business volume of the company's multi screen integrated cockpit products and cockpit domain controllers has increased rapidly. The second-generation cockpit domain controllers have been mass produced on a large scale, and the third-generation cockpit products have been designated by many mainstream independent brand customers. Cooperate with Qualcomm to develop Xiaolong based on the 4th generation ® Cockpit platform to jointly build Huizhou Desay Sv Automotive Co.Ltd(002920) fourth generation intelligent cockpit system. The business scale of large screen products of the company's information and entertainment system has increased rapidly, the business revenue scale of display modules and systems has maintained a growth rate of more than 100%, and the scale of new orders has reached a new high.
Intelligent driving: the company is committed to providing overall solutions for intelligent driving. In 2021, the sales of intelligent driving business increased by 94.78% year-on-year, accounting for 14.5% of the overall revenue, and the proportion increased by 4.02pct year-on-year. The gross profit margin increased significantly to 949.78 PCT year-on-year. Intelligent driving products have received new project orders with annual sales of more than 4 billion yuan. More than 10 million cameras have been shipped in 2021. 77GHz millimeter wave radar has been mass produced on a number of mainstream models in China. 5g and v2x products have achieved mass production and supply for the first time in China in the joint venture brand customer project. The sales volume of T-box and smart antenna products increases rapidly with the popularity of 5g network. Look around and parking system products have been supplied to many mainstream car enterprises in China in batches, with an annual sales volume of more than one million sets. The new generation of lightweight intelligent driving platform has realized mass production and supply of memory parking products. The first mover advantage of the company's high computing power automatic driving domain controller is obvious, which is the most beneficial target for the increase of China's NVIDIA chip share. Ipu03 has taken the lead in large-scale mass production and supply of P7 and P5 models of Xiaopeng automobile. The sales volume of relevant models in 2021 is as high as 68000. Ipu04 is built based on NVIDIA Orin series chips, and has been designated by many traditional independent brand customers and new forces in car manufacturing. Mass production will be realized in 2022, It has become another pillar of the rapid growth of the company's intelligent driving business.
Internet service: the company firmly explores a new business model driven by software, and has realized the commercialization of Internet service products such as vehicle level OTA, network security, blue whale OS terminal software, intelligent access, cockpit security housekeeper and information security.
Investment suggestions:
We predict that the operating revenue of the company from 2022 to 2024 will be 14.146 billion yuan, 19.443 billion yuan and 26.295 billion yuan, and the net profit attributable to the parent company from 2022 to 2024 will be 1.174 billion yuan, 1.656 billion yuan and 2.297 billion yuan. The corresponding PE was 50.73, 35.96 and 25.94 times respectively. Considering the firm leading position of the company in the field of automotive intelligence in China and obvious first mover advantage, the company was given a valuation of 80 times PE in 2022, corresponding to the share price of 169.17 yuan, maintaining the "buy" rating.
Risk tips:
The penetration rate of automobile intelligence is lower than expected, the sales volume of the company's customers is lower than expected, the landing of high-level automatic driving is lower than expected, the competition pattern of the industry is changing, there is a shortage of chips, and the epidemic control is lower than expected.
