\u3000\u3000 Huizhou Desay Sv Automotive Co.Ltd(002920) (002920)
Investment summary:
Huizhou Desay Sv Automotive Co.Ltd(002920) is one of the world's leading automotive electronics enterprises, focusing on three fields: intelligent cockpit, intelligent driving and Internet service. It has formed stable cooperative relations with many mainstream automobile enterprises, the core management team of the company is stable, continues to practice the strategy of "Local Internationalization", and the equity incentive is sufficient. With the improvement of the penetration rate of new energy vehicles, the popularization of intelligent cockpit and the promotion of high-level automatic driving, the company's main profit indicators have come out of the trough, improved in an all-round way, and its leading position in the industry is stable.
Intelligent cockpit: the products fully cover the on-board information and entertainment system, on-board display system, air conditioning controller, etc., and it is the first Tier1 in China that has the ability to mass produce cockpit domain controller. Multi screen intelligent cockpit products are produced in large quantities in ideal, Chang'an, Chery and other main engine plants.
Intelligent driving: it is at the forefront of China's industry in the fields of automatic driving domain controller, millimeter wave radar, parking system, 360 degree look around system and so on. The autonomous driving domain controller ipu03 based on NVIDIA Xavier chip is mass produced on Xiaopeng P7. The autonomous driving domain controller ipu04 based on NVIDIA Orin chip cooperates with the ideal car. It has obvious first mover advantage and is the most beneficial target for the increase of China's NVIDIA chip share. Ipu02 based on Ti tda4 of Texas Instruments realizes L2 + intelligent driving and parking functions. At present, 77GHz millimeter wave radar has been mass produced, and the shipment of 360 degree look around system ranks second in the industry, leading the camp of domestic suppliers.
Internet service: c-v2x / T-box, vehicle level OTA, network security and blue whale OS4 have been launched 0 terminal software and other Internet service products. The first 5g T-box technology was mass produced on the 2021 Buick GL8 Avenir. Blue whale 4.0 was applied to hechuang z03 model for the first time. Vehicle level OTA helps FAW Volkswagen Jetta brand upgrade for the first time.
In the context of cross domain integration, we are optimistic that Huizhou Desay Sv Automotive Co.Ltd(002920) will become a provider of the overall solution of "intelligent cockpit + intelligent driving + Internet of vehicles".
Investment suggestions:
We predict that the operating revenue of the company from 2021 to 2023 will be 9.437 billion yuan, 15.541 billion yuan and 22.219 billion yuan, and the net profit attributable to the parent company from 2021 to 2023 will be 832 million yuan, 1.208 billion yuan and 1.686 billion yuan. The corresponding PE was 97.56, 67.22 and 48.15 times respectively.
Based on the valuation of comparable companies, considering that the company has a solid leading position in the field of automotive intelligence in China and has obvious first mover advantage, the company is given a valuation of 80 times PE in 2022, with a corresponding share price of 173.98 yuan and a market value of 96.607 billion yuan. Covering the company for the first time and giving a "buy" rating.
Risk tips:
The penetration rate of automobile intelligence is lower than expected, the sales volume of the company's customers is lower than expected, the landing of high-level automatic driving is lower than expected, the competition pattern of the industry is changing, there is a shortage of chips, and the epidemic control is lower than expected.
