\u3000\u3000 Shanghai Huace Navigation Technology Ltd(300627) (300627)
[matters]
The company released the performance forecast. In 2021, the company’s operating revenue increased by about 36% over the same period last year. It is expected to realize the net profit attributable to the parent company of RMB 283-296 million, a year-on-year increase of 43.70% – 50.30%, and the net profit deducted from non attributable to the parent company of RMB 217-230 million, a year-on-year increase of 44.33% – 52.98%.
[comment]
The company’s main business focuses on the development, manufacturing, integration and application industrialization of core technologies and products related to high-precision satellite navigation and positioning applications, continuously expands multi industry applications, and provides data acquisition equipment and system solutions for customers in various industries. It is one of the leading enterprises in China’s high-precision satellite navigation and positioning industry. According to the company’s performance forecast and the financial report of the first three quarters, the main reasons for the rapid growth of the company’s operating revenue and profit in 2021 are:
1) with the localization of the core components of high-precision satellite positioning and navigation, the cost of relevant equipment and system products is reduced, the downstream applications are more and more widely, the industry opportunities are increased, and the market demand is strong. In 2021, the company grasped the market opportunity in the field of geological disaster monitoring and achieved great growth; It has achieved good growth and expanded its competitive advantage in the fields of Surveying and mapping, real scene 3D and so on. In the field of unmanned application in closed and semi closed scenarios, the company closely combines unmanned technology with high-precision navigation and positioning technology, and makes good progress in the business fields of UAV, unmanned ship, agricultural machinery navigation, high-precision intelligent navigation control of construction machinery around the main line of technology integration innovation and application mode innovation.
2) the company continued to increase R & D investment, achieved good technical achievements in algorithms, chips, lidar and other related fields, improved the company’s core technical barriers and anti risk ability, developed leading industry products and solutions, and laid a solid foundation for the company’s business development.
3) in the field of automatic driving of passenger cars, the company also made important breakthroughs during the reporting period. According to the contents of the semi annual report, the company has been designated as the designated supplier of automatic driving position unit business of Nezha automobile and a car enterprise in Zhejiang. The project period is 2021-2026, which is expected to have a positive impact on the company’s future performance.
4) the company continues to optimize its governance system and give full play to its management mechanism, incentive system and other advantages. During the reporting period, the company launched the restricted stock incentive plan for 2021. According to the incentive plan, the assessment index of the company is that the net profit from 2022 to 2024 will increase by 15%, 30% and 45% respectively compared with that in 2021. The introduction of the incentive plan can continuously stimulate the enthusiasm of the team, Enhance the cohesion and stability of the team and provide a strong guarantee for the rapid development of the company.
According to the company’s performance forecast and future development prospects, we lowered the company’s revenue forecast from 2021 to 2023 and raised the gross profit margin forecast, so we lowered the company’s profit forecast. It is estimated that the operating revenue of the company from 2021 to 2023 will be RMB 1.918 billion, RMB 2.514 billion and RMB 3.431 billion, the net profit attributable to the parent company will be RMB 288 million, RMB 390 million and RMB 536 million, the EPS will be RMB 76 million, RMB 103 million and RMB 141, and the corresponding PE will be 61 times, 45 times and 33 times respectively. We are cautious about the future performance of the company and maintain the “overweight” rating.
[risk tips]
Overseas business promotion is less than expected;
The promotion of new business is less than expected;
The progress of R & D and introduction of new products is less than expected;
Market competition intensifies.
