Jingwei Hengrun is a leading integrated electronic system technology service provider in China. Founded in 2003, the company focuses on providing electronic products, R & D services and overall solutions for high-level intelligent driving for customers in the fields of automobile and unmanned transportation. The company focuses on the research and development of high-level electronic products, unmanned transportation systems and solutions for customers. Among them, electronic products business is the largest business of the company, accounting for 72.80% of the revenue in 2020, and R & D services and solutions business is the second largest business of the company, accounting for 25.63% of the revenue in 2020.
Intelligent driving and intelligent networking products have become an important growth source of the company. The company’s automotive electronic products are mainly distributed in five fields: intelligent driving, intelligent networking, body and comfort, chassis control, new energy and power system. At present, the body and control domain currently account for the highest proportion, accounting for 34.28% of the revenue in 20 years. Intelligent driving and intelligent Internet connection products have been in high volume in the past three years, becoming an important source of growth for the company. Among them, the revenue proportion of intelligent driving products has rapidly increased from 4.45% in 18 years to 16.30% in 20 years, with an annual compound growth rate of 143%. The revenue proportion of intelligent Internet connected products has increased from 6.59% in 18 years to 14.24% in 20 years, with an annual compound growth rate of 87%.
The control node continues to shrink, and the penetration rate of ADAS increases rapidly. Jingwei Hengrun has made in-depth cooperation with Mobileye. At present, ADAS shipments are mainly based on the forward-looking all-in-one machine scheme of mobileyeeyeq series chips. Mobileye has a market share of more than 30% in 2020. It is mainly delivered in the mode of “chip + algorithm”, and Jingwei Hengrun is used as Tier1 to deliver the integration scheme. With the centralization of EEA architecture, the control nodes of ADAS system architecture are also shrinking, gradually moving from the architecture of distributed and multi control nodes to the architecture of domain centralization or even the ADAS architecture of central and single control node. The company has strong technical strength. It is one of the few domestic Tier1 that has achieved mass production of the front mounted ADAS system. It is estimated that by 2025, the assembly rate of vision system is expected to exceed 60%, and the penetration rate of ADAS will increase rapidly, driving the rapid and large-scale production of the company’s intelligent driving system.
The commercialization of unmanned heavy trucks has landed rapidly, and the unmanned port has come on the waves. The company entered the field of high-level intelligent driving business in 2015. The company has developed single vehicle intelligent solutions, intelligent fleet operation management solutions and vehicle cloud data center solutions. Port autopilot is a typical closed scenario + low-speed operation scenario, which is a typical scenario in which autopilot takes the lead in commercialization. On October 9, 2021, Jingwei Hengrun participated in the construction of the world’s first shore open fully automated container terminal, which was officially opened in Rizhao Port Co.Ltd(600017) of Shandong Port Group.
Risk warning: the implementation of high-level automatic driving policy is not as expected; The downstream demand of intelligent vehicles is lower than expected; Trade frictions exacerbate risks.
Investment suggestion: it is suggested to focus on the investment opportunities of incremental automotive electronic products and automotive software under the centralized trend of automotive EEA architecture. Focus on longitude and latitude Hengrun.
