Today, the automobile industry is accelerating towards “intelligence”. According to the prediction of China Society of automotive engineering, by 2030, the online ratio of new vehicles sold in China will reach 100%, and the sales scale of online vehicles will reach 38 million.
For smart cars, networking is only the first step, and systems such as automatic driving and intelligent cockpit are the core of the car’s move towards “intelligence”. Vehicle mounted cameras, lidar and other automotive electronic products are key parts of automatic driving, and their market scale is also growing. According to the prediction of the prospective industry research institute, the scale of the global automotive electronics market will reach 355 billion US dollars in 2023, and the compound annual growth rate from 2018 to 2023 will be as high as 8.4%.
In the face of this expanding “cake”, many Chinese manufacturers have chosen to take the initiative. As early as 2015, Ofilm Group Co.Ltd(002456) ( Ofilm Group Co.Ltd(002456) , SZ) entered the field of intelligent vehicles. At present, it has formed a rich product matrix including on-board camera, millimeter wave radar, lidar, head up display (HUD) and other products.
In 2021, Ofilm Group Co.Ltd(002456) intelligent automobile products achieved a revenue of 1.025 billion yuan, a year-on-year increase of 32.02%. It can be seen that the wave of “intelligent automobile” is opening up space for long-term growth for Ofilm Group Co.Ltd(002456) development.
under the wave of intelligence, the demand for automotive electronics has increased
Automotive electronics is the general name of electronic components and electronic equipment installed in automobiles.
Driven by the upgrading of automobile “intelligence”, the proportion of automobile electronics in the cost of the whole vehicle continues to increase. According to the data of CCID think tank, in the 1970s, the electronic cost of passenger cars accounted for only 3% of the total vehicle cost, but this proportion has increased to about 40% in 2015 and is expected to reach 60% in 2025.
The increase of cost proportion means the expansion of market scale. According to the prediction of China Automobile Association, by 2022, the scale of the global automotive electronics market will reach 2139.9 billion yuan and the scale of China’s automotive electronics market will reach 978.3 billion yuan.
Specifically, automatic driving has become an important direction for cars to move towards “intelligence”. It is understood that automatic driving is divided into five levels: L1-L5. The higher the level, the higher the automation level. L1 is auxiliary driving, L2 is semi-automatic driving, L3 is highly automatic driving, L4 is ultra-high automatic driving, and L5 is fully automatic driving.
Zheshang Securities Co.Ltd(601878) a research report indicates that it is estimated that the proportion of L2 / L3 new cars will reach 50% and 70% respectively in 2025 and 2030, and the proportion of L4 will reach 20% in 2030.
ICV tank also predicted that the sales volume of L2 and L3 passenger cars will reach 57.11 million and 1.72 million in 2026, and the five-year compound annual growth rate will reach 26% and 115% respectively.
For a car, if it wants to achieve a higher level of automatic driving, it needs more sensors to help it realize the real-time perception of the surrounding environment and obtain the contour and distance of the surrounding objects, so as to realize the functions of automatic obstacle avoidance, automatic navigation and so on.
Therefore, the increasing penetration and level of automatic driving will give birth to a strong demand for cameras, lidar and other sensors. According to Huaan Securities Co.Ltd(600909) calculation, L1 level requires 1 ~ 4 cameras, 1 millimeter wave radar and 4 ultrasonic radars, L2 level requires 3 ~ 8 cameras, 5 millimeter wave radars and 12 ultrasonic radars, and L3 level requires not only 8 ~ 12 cameras, 5 ~ 8 millimeter wave radars and 12 ultrasonic radars, but also 1 ~ 3 lidars.
Ofilm Group Co.Ltd(002456) relying on its technical advantages in the field of Optics and optoelectronics, it has deeply arranged intelligent driving, body electronics and intelligent cockpit, and gradually extended to millimeter wave radar, lidar, head up display (HUD) and other products based on optical lens and camera. Building a diversified product matrix will enable Ofilm Group Co.Ltd(002456) to benefit from the dividends of industry development.
Automobile Electronics “relay run”, layout and construction of “moat”
It is understood that at present, consumer electronics has entered a period of steady development. IDC data show that in 2021, global smartphone shipments reached 1.354.8 billion, a year-on-year increase of 5.7%.
However, the intelligent automobile industry still has broad growth space. As the main carrier of automobile intellectualization, the sales of new energy vehicles are still growing rapidly. According to the data of the Ministry of industry and information technology, the sales volume of new energy vehicles in 2021 was 3.521 million, with a year-on-year increase of 1.6 times. The new passenger vehicle market equipped with combined auxiliary driving system accounted for 20%.
In this context, Ofilm Group Co.Ltd(002456) the layout of automotive electronics is actually a “relay race”, which gives the company a broader space for development.
Since 2015, Ofilm Group Co.Ltd(002456) has entered the field of intelligent vehicles. Through the acquisition of East China automobile and power and Nanjing Tianqing, it has become the “Tier1” (first-class supplier of vehicle factory, i.e. the supplier of parts whose products are directly supplied to the vehicle factory) of Chinese vehicle manufacturers.
In 2018, Ofilm Group Co.Ltd(002456) acquired Fuji Tianjin lens factory, strengthening the layout of vehicle lens. At present, Ofilm Group Co.Ltd(002456) has obtained the supplier qualification of more than 20 Chinese automobile manufacturers, and is conducting the supplier qualification certification of foreign manufacturers.
With the timely layout, Ofilm Group Co.Ltd(002456) formed a certain “moat”. For example, the company’s short-range millimeter wave radar products can realize near-field and low-speed detection, and all indicators are at the leading level in the industry. They also surpass ultrasonic sensors in detection range, speed and angle, allowing cars to accurately judge the surrounding environment and reduce friction. Ofilm Group Co.Ltd(002456) also has business advantages of higher cost performance or leading technology in the fields of body electronics, intelligent cockpit and so on.
In addition to the automotive field, Ofilm Group Co.Ltd(002456) also relies on its advantageous optical technology and manufacturing automation ability to layout the optical lens, image module, optical mechanical module and whole unit assembly in the fields of smart home, VR / AR, sweeping Siasun Robot&Automation Co.Ltd(300024) , motion camera, industrial and medical related products.
This diversified business layout may create more possibilities for the long-term growth of Ofilm Group Co.Ltd(002456) .
