\u3000\u3000 Navinfo Co.Ltd(002405) (002405)
Event: on January 16, 2022, Navinfo Co.Ltd(002405) announced the performance forecast for 2021. In the whole year, the company is expected to realize an operating revenue of 290 million yuan to 310 million yuan, with a year-on-year increase of 35.03% – 44.34%; The net profit attributable to the parent company was 101.0628 million yuan – 131.3816 million yuan, with a year-on-year increase of 132.65% – 142.45%.
Comments:
The company’s operating revenue increased rapidly. In 2021, the company’s operating revenue is expected to be 2.9-3.1 billion yuan, an increase of 35.03% – 44.34% over the same period of last year. Among them, the company’s high-precision map, automatic driving data compliance platform, automatic driving solutions and commercial mass production cooperation of intelligent Internet connection business have increased significantly, and the operating revenue of advanced auxiliary driving, automatic driving business and Internet of vehicles business has increased significantly year-on-year in 2020. The shipment volume and revenue contribution of MCU and other chip products increased compared with the previous year, but the tight supply of automotive electronic chips and the increase of raw material prices still had a great impact on the company. In 2021, affected by the growth of main business income and the increase of income from fixed and raised funds, the company turned losses into profits. The net profit attributable to the parent company is expected to be 101-131 million yuan, with a loss of 309 million yuan in the same period of last year. The company estimates that the amount of non recurring profits and losses is 58 million yuan – 67 million yuan, mainly because the investment cost of the company’s acquisition of subsidiaries is less than the investment income generated by the fair value of the identifiable net assets of the subsidiaries when the investment is obtained, as well as the investment income obtained from the disposal of trading financial assets.
The three core advantages of technology precipitation, shareholder integration and stable and high-quality customers build high barriers. Compared with other graphic companies, we believe that the company has three core advantages: technology, cross-border integration of shareholders and customer resources. 1) In terms of technology, the investment in R & D continued to be high, and the proportion of technical R & D personnel was nearly 70%. We worked with the Ministry of industry and information technology and other government departments and industrial alliances to formulate a number of industrial technical standards. 2) The cross-border shareholders of state-owned assets and Internet enterprises are integrated. The top two shareholders, China Siwei (subordinate to aerospace group) and Tencent, hold 8.61% and 4.59% respectively. The state-owned assets background is conducive to the company’s obtaining qualification licenses and participating in the formulation of industry standards; Tencent’s Internet gene provides flow and capital assistance for the company. 3) The company’s partners and customers cover passenger cars, commercial vehicles, system providers, Internet / government enterprises, universities and other fields, and has established a perfect partner ecology.
Under the strict requirements of automobile data supervision, the demand for data compliance business has increased. Compliance requirements such as information security and data security give birth to the needs of automobile enterprises for automobile data compliance management. In November 2021, the company signed contracts with Volvo and Daimler. The company has signed a framework agreement on Internet of vehicles procurement with Volvo cars, and will undertake the compliance services of Volvo car Internet of vehicles cloud service platform in the next three years. For the order of automatic driving data management service platform for mass-produced vehicles, the company will build and integrate Daimler’s automatic driving platform in China, be responsible for the data management service of the platform in the next three years, and provide data processing and other services for Daimler group’s mass-produced passenger vehicles sold in China in the next three years. In addition, with the support of the Ministry of industry and information technology, the company took the lead in completing the Internet of vehicles data security monitoring traceability platform. Facing the needs of comprehensive data security management, classification of data assets and industrial data security governance of the Internet of vehicles, the platform combs out 14 typical business scenarios of the Internet of vehicles, identifies 22 types of data security risks, covers the Internet of vehicles data of multi-dimensional scenarios, the cloud management end comprehensive management service capability of full life cycle security supervision and traceability. Under the background of the continuous improvement of the data security system of the Internet of vehicles, the demand for compliance services such as data processing and data management involved in the process of automobile design, production, sales, use, operation and maintenance is expected to give birth to a new increment of the automobile market.
Investment suggestion: we estimate that the company’s revenue in 21-23 years will be RMB 3.028 billion, RMB 3.755 billion and RMB 4.694 billion respectively, and the net profit attributable to the parent company will be RMB 118 million, RMB 225 million and RMB 412 million respectively, with a year-on-year growth rate of 138.1%, 90.3% and 83.4%. It will be covered for the first time and given a “buy” rating.
Risk tip: the development of intelligent driving industry is not as expected; Affected by the epidemic, economic growth declined; Industry competition intensifies.
