\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 27 Shanghai Huace Navigation Technology Ltd(300627) )
Event: on the evening of April 26, Shanghai Huace Navigation Technology Ltd(300627) released the annual report of 2021 and the first quarterly report of 2022. The company achieved an operating revenue of 1.903 billion yuan in 2021, an increase of 35.0% year-on-year compared with 1.41 billion yuan in 2020; The net profit attributable to the parent company was 294 million yuan, a year-on-year increase of 49.5% compared with 197 million yuan in 2020; The operating revenue in 2022q1 was 422 million yuan, an increase of 22.0% over 346 million yuan in 2021q1, and the net profit attributable to the parent company was 67 million yuan, an increase of 34.9% over 49 million yuan in 2021q1.
The results of the whole year and the first quarter were in line with expectations, and the profitability was significantly improved. 1) Revenue side: the company’s revenue grew rapidly in 2021, mainly due to the continuous expansion of the company’s downstream application fields and the orderly promotion of new product release. In 2022q1, the revenue level remained steady growth under the disturbance of the epidemic; 2) Cost side: the company’s gross profit margin was 54.64% in 2021 and 51.78% in 2021q4, mainly due to the price fluctuation of upstream raw materials, and the gross profit margin was 60.38% in 2022q1, mainly due to the significant improvement of profitability caused by the marginal improvement of raw material supply and demand; 3) Profit side: the net profit attributable to the parent company in 2022q1 reached 67 million yuan, a year-on-year increase of + 34.9%, maintaining high-speed and high-quality growth.
In the future, the global GNSS market will maintain steady growth and the company’s business field will continue to expand. According to euspa data: in 2031, the number of global GNSS equipment will exceed 10 billion; From 2021 to 2031, the annual shipment of global GNSS equipment will increase from 1.8 billion to 2.5 billion; In 2031, the downstream market revenue of GNSS is expected to reach 492 billion euros, with a compound growth rate of 9.2%. The downstream market demand of the business areas arranged by the company is strong, and the demand of traditional application fields such as construction and infrastructure, geospatial information, resources and public utilities is increasing. At the same time, the company actively relies on the core technical advantages of integrated navigation algorithm to expand the application of unmanned driving field, and has been able to provide high-precision navigation membrane sets, boards and cards for autonomous passenger vehicles, unmanned transport vehicles such as ports / mining areas, logistics Siasun Robot&Automation Co.Ltd(300024) and so on Positioning and direction finding receiver and other products are expected to contribute to the company’s important performance increment in the future.
In 2025, the high-precision positioning passenger car front loading market is expected to exceed 10 billion, and the company’s products have entered the core main engine factory. We believe that high-precision positioning is an important supplement to the sensing end of on-board automatic driving, and is expected to become the standard configuration of most high-level intelligent networked vehicles in the future. We estimate that the space of high-precision positioning terminal in the field of mass production of supporting passenger car front loading in the Chinese market is expected to reach 10.85 billion yuan, and the CAGR will reach 77.6% from 2021 to 2025. The company has been deeply engaged in high-precision positioning for more than 20 years, covering the Beidou industrial chain in multiple dimensions and accumulating profound technology. At present, it has been designated as the designated supplier of automatic driving position unit business of core main engine plants such as Nezha, Geely lutes, Byd Company Limited(002594) , Great Wall and so on. In the future, it is expected to continue to expand high-quality main engine plant customers by virtue of product quality.
Investment suggestion: we believe that while the company’s traditional business is advancing steadily, the follow-up of vehicle business will bring new performance increment to the company. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 397 / 525 / 691 million yuan respectively, and the corresponding PE multiple will be 25X / 19x / 15x. Guangzhou Hi-Target Navigation Tech Co.Ltd(300177) and Guangzhou Haige Communications Group Incorporated Company(002465) in the same field are selected as comparable companies. The average PE value in 2022 / 2023 is 24x / 19x. We believe that the company already has relatively mature terminal products in the field of vehicle products, and the subsequent large-scale combined terminals with automatic driving will bring higher growth to the company. Maintain a “recommended” rating.
Risk warning: the recovery of the epidemic situation is not as expected; The progress of intelligent networking was less than expected.
