\u3000\u3 China Vanke Co.Ltd(000002) 920 Huizhou Desay Sv Automotive Co.Ltd(002920) )
Event overview
The company released the first quarterly report of 2022: in 2022q1, the company achieved a revenue of 3.14 billion yuan, a year-on-year increase of + 53.9%, a month on month increase of – 3.8%, a net profit attributable to the parent of 320 million yuan, a year-on-year increase of + 39.2%, a month on month increase of – 7.0%, and a deduction of 310 million yuan not attributable to the parent, a year-on-year increase of + 38.0% and a month on month increase of – 9.7%.
Analysis and judgment:
Q1 performance is beautiful, and the intelligent driving intelligent cabin continues to rise
Revenue side: benefiting from the growth of new customers of intelligent cockpit, the volume of new products and the shipment of intelligent driving business ipu02 and ipu03, the revenue of 2022q1 company reached 3.14 billion yuan, with a year-on-year increase of + 53.9% and a month on month increase of – 3.8%. The single quarter revenue is second only to 2021q4, outperforming the industry market by 40 + PCT, reflecting the high growth of intelligent business.
Profit side: in 2022q1, the company’s gross profit margin was 24.0%, with a year-on-year decrease of – 1.1pct and a month on month decrease of – 0.8pct. It is expected that the main reason is the lack of core and the rise of raw material prices. However, driven by the rapid growth of revenue, the net profit attributable to the parent company in 2022q1 reached 320 million yuan, with a year-on-year increase of + 39.2% and a month on month decrease of – 7.0%.
Expense side: the rates of sales, management, R & D and finance in 2022q1 are 1.8%, 2.3%, 8.8% and – 0.2% respectively, with a year-on-year increase of – 1.1, + 0.1, + 0.8 and – 0.5pct respectively, and a month on month increase of + 0.2, – 0.6, – 1.9 and + 0.1pct respectively. The year-on-year increase of management and finance rates is mainly affected by the increase of personnel and salary expenses.
The intelligent transformation of the main business of the cockpit has sufficient orders to accelerate the release of performance
Cockpit products are the traditional main business of the company, covering on-board information entertainment, driving information display, display terminal, body information and control, etc. in 2021, new annual sales of about 8 billion yuan and new project orders:
(1) in 2021, the core product on-board infotainment system received new project orders from customers such as FAW Volkswagen, SAIC Volkswagen, Great Wall Motor Company Limited(601633) , Geely Automobile, GAC passenger car and Chery Automobile, in which the business scale of large screen products increased rapidly;
(2) emerging business: the display module and system and liquid crystal instrument are developing rapidly. The display module and system will maintain a growth rate of more than 100% in 2021 and break through the white point customers such as Dongfeng Nissan and Xiaopeng automobile; Liquid crystal instrument has been designated by Byd Company Limited(002594) , Geely Automobile, Great Wall Motor Company Limited(601633) , GAC passenger car and other customers;
(3) external cooperation: the company signed a cooperation agreement with Huawei on the whole scene intelligent travel ecological solution, and joined hands with Qualcomm to build a new generation of intelligent cockpit system based on the 4th generation Xiaolong cockpit platform to comply with the general trend of cockpit intellectualization.
Adas accelerates large-scale cooperation with NVIDIA to dig Jin Zhijia
The strategic layout of intelligent driving covers L2, L3 and above levels. Now it has entered the accelerated harvest period. In 2021, new project orders with annual sales of more than 4 billion yuan were obtained:
(1) advanced assisted driving ADAS: 360 look around, full-automatic parking and driver monitoring to achieve large-scale mass production, and successfully break through the white point customers such as SAIC GM, great wall, SAIC Cheng and Weilai; In November 2021, it jointly released a new intelligent driving solution ipu02 with Texas Instruments, which is the world’s first tda4 chip ADAS mass production project, and is expected to continue to benefit from ADAS penetration;
(2) L3 and above high-level autopilot: 1) at the hardware level, the L3 level autopilot domain controller ipu03 is now equipped with Xiaopeng P7 / P5; Ipu04 based on NVIDIA’s latest generation of Orin chip was successfully offline in September 2021. It has been designated for many projects, including traditional independent brand customers and new car making forces. We expect ASP per bike to reach 1 Shenzhen Zhongheng Huafa Co.Ltd(000020) 000 yuan. As the only partner of NVIDIA China at this stage, the company deeply benefits from the introduction of high-level automatic driving; 2) At the software level, we reached a strategic cooperation with maxieye to build the development and service operation capability of L1-L4 full stack automatic driving scheme, and explore the operation service mode of smart heavy truck.
Investment advice
Intelligent cockpit products benefit from the trend of large screen and multi screen cockpit, and the performance is accelerated; Intelligent driving products cover L2, L3 and above, and have entered the harvest period: 1) ADAS products are accelerated in large quantities; 2) L3 and above join hands with NVIDIA to deeply benefit from the introduction of high-level automatic driving. Optimistic about the long-term growth of the company’s intelligent transformation opportunities and raised the profit forecast. It is expected that the company’s revenue in 20222024 will be adjusted from RMB 11.80/14.97/18 billion to RMB 12.68/166.3/20.92 billion, the net profit attributable to the parent company will be adjusted from RMB 1.21/16.1/2.01 billion to RMB 1.29/17.6/22.9 billion, and the EPS will be adjusted from RMB 2.18/2.89/3.62 to RMB 2.32/3.17/4.12, corresponding to the closing price of RMB 107.28/share on April 15, 2022, and the PE will be 46 / 34 / 26 times respectively, maintaining the “overweight” rating.
Risk tips
Industry competition intensifies; Product development and customer project acquisition are not as expected; Chip shortage; The cost of raw materials has risen.
