Events:
The company released its semi-annual report 2021 after the close on August 20, 2021.
Comments:
In the first half of the year, facing external challenges, the company's steady operation, revenue and profits achieved steady growth in the second quarter of 2021, the company was under certain pressure on both the purchasing side and the sales side: 1) starting from late April, the growth rate of heavy truck sales began to decline gradually, and the pre-loading business was affected to a certain extent; 2) the shortage and price increase of upstream chips and other electronic materials had a certain impact on the company's gross profit margin. Facing the challenge, the company operates steadily. In the first half of the year, the company achieved operating income of 251 million yuan, an increase of 26.54% over the same period last year, and a net profit of 41.3801 million yuan, up 12.15% over the same period last year. The company continued to increase investment in R & D. in the first half of the year, R & D expenditure reached 48.015 million yuan, an increase of 32.46% over the same period last year, and the R & D expenditure rate reached 19.14%. The number of R & D personnel increased to 337, accounting for 58.41% of the total staff.
The intelligent business is growing rapidly before and after the installation, and the Internet connection and Smart City business continue to steadily promote the intelligent business: 1) Advanced Auxiliary driving: the income in the first half of the year is 51.1694 million yuan, an increase of 103.54% over the same period last year. The increase in preloading is mainly due to the increased requirements of customers of the main engine factory for the intelligence of commercial vehicles, the increase in the coverage of advanced auxiliary driving systems, and the increase in the number of product categories. The customers and models installed have been greatly expanded. The increase in afterloading is mainly due to the fact that the slag truck business gradually got rid of the impact of the epidemic and entered a number of cities and began to supply goods in the first half of the year. 2) Automotive controllers: Beijing Weibo has signed development agreements with some commercial vehicle head mainframe factories, and some products have reached the stage of mass production.
Net-connected business: 1) pre-installation: in the first half of the year, the revenue of the intelligent enhanced driving system was 157 million yuan, an increase of 17.95% over the same period last year. The increase in sales of heavy trucks and the increase in the permeability of the sixth national model led to a gradual increase in the penetration of the driving recorder and T-BOX; the revenue from the central control screen of the intelligent vehicle was 16.932 million yuan, down 18.60% from the same period last year, mainly due to the iterative upgrading of major customer models and the adjustment of the original product structure. 2) afterloading: in the first half of the year, the new increment of vehicle networking terminals decreased compared with the same period last year, resulting in a 29.23% year-on-year drop in revenue.
Smart city business: in the first half of the year, the revenue of smart city business reached 14.4771 million yuan, an increase of 53.74% over the same period last year, mainly due to the accelerated pace of company expansion and the continuous increase in the product types of government management platform.
In the second half of the year, the company will continue to actively promote the differentiation strategy and cost-leading strategy in the second half of the year, the company will continue to invest in research and development, continue to optimize the old product line, and develop new products (car controllers, etc.). The company will focus on promoting after-loading active safety, dregs and environmental protection OBD market: 1) active safety business: at present, it has obtained the qualification of active safety supply in Jiangsu, Henan and other places, and will begin to supply in bulk in the second half of the year. In the second half of the year, more provinces will launch projects, and the company is expected to gain market share with low-cost and high-quality products. 2) residue truck and environmental protection OBD business: the company will continue to follow the government bidding projects.
Investment advice and profit Forecast
The company focuses on the intelligent network connection automobile industry, the first-mover advantage is more obvious, and there is a broad space for growth in the future. It is predicted that the operating income of the company from 2021 to 2023 is 6.23,8.26 and 1.08 billion yuan, the net profit is 1.21,1.61 and 211 million yuan, the EPS is 1.21,1.61,2.11 yuan per share, and the corresponding PE is 33.29,25.00,19.09 times. Since listing, the company's PE has mainly run between 40 and 80 times. At present, the PE TTM of the computer (Shenwan) index is 52.8 times, maintaining the company's target PE of 45 times in 2021, corresponding to a target price of 54.45 yuan. Maintain a "buy" rating.
Risk hint
The promotion of the "sixth National" policy is not as expected; the competition in the industry has intensified, and the average sales unit price of products has declined; the promotion of advanced auxiliary driving business is not as expected; and the promotion of smart city business is not as expected.