Deep ploughing in the field of intelligent transportation for many years, car ecology, road ecology, cloud platform coordinated development. As a leading intelligent transportation platform enterprise in China, Wanji technology focuses on intelligent transportation for more than 20 years, and its products include dedicated short-range communication (ETC), laser products, intelligent network connection and dynamic weighing series. At the same time, the company is determined to forge ahead in many fields, such as car networking, big data, cloud platform, edge computing and self-driving. We have developed a series of products, such as lidar at both ends of the road, V2X vehicle-road coordination equipment, intelligent network-connected road intelligent base stations, intelligent transportation cloud platform, and so on, to provide comprehensive solutions, systems, products and services for smart high-speed and smart cities.
Lidar has a wide space, mechanical, MEMS, silicon-based solid-state multi-dimensional. Yole data show that lidar (LiDAR) will grow at a compound annual growth rate of 21% from 2020 to 2026 and reach $5.7 billion in 2026. Wanji Technology has been engaged in lidar research and development since 2011, and has many years of technical accumulation and reserve in optical structure, laser emission, receiving circuit design and so on. As of December 31, 2020, the company has obtained a total of 237 patents for lidar products, covering autopilot, intelligent transportation, robotics and other markets. On December 16, 2021, at the World Smart Automobile Congress in Guangzhou, Wanji Technology released its hybrid solid-state 128-line gauge-class lidar, marking the further improvement of the company's layout of the pre-loading gauge-class laser.
In addition, in addition to mechanical lidar, the company also has deep layout and accumulation in the field of more advanced MEMS lidar and silicon-based all-solid-state lidar. In the future, with the increasing demand for lidar for industrial robots and intelligent driving, this part of the company's business is expected to rise abruptly based on accumulated strength.
The coordinated development of "human-car-road-cloud" and the positive growth of intelligent network connection. With the steady development of 5G large-scale commercial, reliable communication network is expected to promote the construction and application development of bullet train networking. According to the data of "Intelligent Network Automotive Technology Roadmap 2.0", the new car assembly rate of C-V2X terminals is expected to reach 50% in 2025 and achieve basic popularity in 2030. In the field of intelligent Internet connection, the company has been laying out since 2016, and its products mainly include V2X communication terminals, roadside intelligent base stations and intelligent network connection cloud control platform, which is expected to benefit from the steady growth of the automobile intelligent network connection market.
The research and development strength is strong, must increase the code industrialization ability. In recent years, the company's R & D strength has been continuously strengthened. at the end of 2020, the company has 508 R & D personnel; as of June 30, 2021, the company has a total of 796 patents. In order to meet the needs of the fast-growing intelligent transportation industry, the company raised funds in 2021 to further increase its industrial investment in lidar, intelligent network connection and other fields. With the implementation of the fund-raising project, the company's products and service capabilities for intelligent network connection solutions are expected to be strengthened again.
Profit forecast and investment rating: cover for the first time and give a buy rating. As a smart transportation platform enterprise with forward-looking strategic vision, Wanji Technology has laid out its ETC business since 2007, achieved the leading position in the industry through more than ten years of hard work, and ushered in the harvest in 2019. Although the company's performance has declined for two consecutive years since the peak of ETC business pulse in 2019, its R & D investment in lidar, intelligent Internet connection and other areas continues to increase, accounting for more than 20% of R & D expenditure in the first three quarters of 2021, which shows that the company adheres to the strategic focus of long-term development. In the future, with the maturity of the lidar and intelligent Internet market, the advanced and in-depth layout of Wanji technology in this field is expected to repeat the successful path in the ETC market at that time. It is estimated that the company will achieve a net profit of 0.93,1.81 and 284 million yuan from 2021 to 2023, and the current market capitalization corresponding to PE is 79.50,40.80,25.98 times respectively. Considering that the company is a relatively scarce platform target with mechanical, MEMS, all-solid-state lidar and intelligent network connection related technology skills in the A stock market, the core track clamping advantage and growth attribute are obvious, so the company is given a buy rating.
Risk Tips:
1) the demand of ETC and dynamic weighing business is not as expected; 2) the R & D and industrialization of lidar is not as expected; 3) the R & D and industrialization of intelligent network connection is not as expected; 4) the market competition is intensified; 5) the business development is not as expected due to the repeated epidemic situation.
