\u3000\u3 China Vanke Co.Ltd(000002) 906 Foryou Corporation(002906) )
Focus on intelligence and actively layout automotive electronics. The company began to transform into an automotive electronics company in 2012. The company's investment in intelligence has remained high. Since 2018, the R & D investment has been significantly ahead of other expenses. In 2020, the company's revenue and net profit attributable to the parent company entered a new growth stage. Since 2021, the company's automotive electronics business has not only connected with independent brand customers, but also obtained joint venture brands and new power points, and cut into the supply chain of multiple mainstream models.
The overall layout of automotive electronics, multi product lines have great prospects. The car cabin is advancing to the "third living space" of mobile travel. High computing power chip supports domain controller, large screen / multi screen display, large-size ar-hud, multi area voice interaction, operating system supporting multiple entertainment, etc Foryou Corporation(002906) the layout of intelligent cockpit product line is perfect. It can provide domain controller and independently develop cockpit terminal hardware such as on-board entertainment system, display screen and on-board communication, so as to provide a complete set of intelligent cockpit solutions and realize deeper binding with vehicle enterprises, which is expected to take the lead in cockpit reform. The company also launched Yu eye camera, 360 look around system, APA and other intelligent driving products to achieve coordinated development.
The star single product HUD has prominent competitive advantages and broad development prospects. HUD has obvious advantages and is expected to become the mainstream interactive mode of cockpit. W-hud and ar-hud are the mainstream solutions at present. We expect that the carrying rate of passenger car HUD is expected to expand to 48% in 2025, the market scale will reach 14.7 billion yuan, and the five-year average compound growth rate will be as high as 85% Foryou Corporation(002906) took the lead in breaking the foreign monopoly. In 2021, China's front loading market share reached 16.28%, ranking second. At present, the company can provide mature w-hud series products and solutions. Ar-hud leads technological innovation, and China's market share is expected to continue to expand.
Investment suggestion: the company is expected to realize a net profit attributable to the parent company of RMB 294 / 442 / 631 million from 2021 to 23, corresponding to 53 / 35 / 25 times of PE from 2021 to 2023. Considering that the average EPS growth rate of the company from 2022 to 2023 is much higher than the industry average, and the advantages of cabin supporting capacity are obvious, the company is given 44 times PE in 2022, corresponding to the target price of RMB 41.0 in 2022, and the "buy" rating is given for the first time.
Risk tip: the car sales volume is lower than expected; Intensified market competition; Risk of rising raw material costs; Risk of core failure; New business expansion is less than expected; Inventory falling price risk.
