Jingwei Hengrun (688326)
Core recommendation logic
After nearly 20 years of development, the company has grown into one of the few enterprises in China that can cover intelligent driving electronic products, R & D services and solutions, and high-level intelligent driving overall solutions. In the context of the transformation of automotive intelligent electric, we continue to benefit from the “Trinity” business layout, deep platform software strength, high-quality talent reserve and extensive customer resources:
Electronic products business: intelligent driving is growing rapidly, and multi SKU is actually the embodiment of platform strength. The company is the first basic software provider to join AUTOSAR in China. Based on the in-depth understanding of the platform ability of automobile controller, the company’s products have been involved in intelligent driving, intelligent networking, body comfort, chassis control and other fields: 1) intelligent driving products: domestic alternative pioneers, the market share of commercial / passenger vehicles is in the forefront of autonomy, and a complete product sequence with low to high computing power is formed based on chips such as Mobileye / Ti, Meet the diversified selection and self research needs of vehicle enterprises; 2) Body comfort and intelligent networking: automotive electronic standard configuration, scale effect gradually appears; 3) Other electronic products: controller platform capacity extension, chassis control new products, we expect to mass produce and contribute revenue in 2022;
R & D services and solutions business: the comprehensive embodiment of software capabilities, effectively supporting the development of electronic products business. Since its establishment, the company has adhered to the technology leading strategy driven by R & D, and the core technology sources are independent R & D. based on the in-depth understanding of software, the company provides various technical solutions, tool development and process support services for the R & D process of electronic systems of customers in different industries, enjoys high gross profit and effectively supports the business development of electronic products;
Intelligent driving overall solution business: the company’s important emerging business direction and potential profit growth point in the future. At present, the company has formed a complete set of port Maas solutions and achieved commercialization. More than 20 intelligent driving port vehicles have been put into operation in Tangshan Port Group Co.Ltd(601000) , Rizhao Port Co.Ltd(600017) two ports, enabling mass production of intelligent driving.
Profit forecast: 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. Relying on the Trinity business layout and deep platform software strength, the company is expected to simultaneously realize the dual expansion of products and customers, and continue to benefit from the process of automobile intelligent electrification. It is estimated that the revenue from 2022 to 2024 will be RMB 4.39/6.09/8.1 billion respectively, the net profit attributable to the parent company will be RMB 221/3.53/513 million respectively, and the EPS will be RMB 1.84/2.94/4.28 respectively.
Risk tip: the sales volume of global and Chinese passenger car industry is lower than expected; The increase of intelligent penetration rate is less than expected; The company’s customer expansion is less than expected.
