Company trends
The current situation of the company
AltSOA (Service-Oriented Architecture) developer platform officially launched 1; announced the second phase of the company's share buyback plan.
Comment
Intelligent layout plus code, launch Art SOA developer platform. Electronic and electrical architecture and other top-level design and the upgrading of key software and hardware products are the key to the realization of automotive intelligence. The company actively promotes research and development in related fields and product layout. In 2021, the VCU (vehicle controller) independently developed by the company has been successfully applied in the project. Today, the SOA developer platform is online, we think to show the company's strong product cashing ability. SOA is a software design paradigm that is more in line with the requirements of "automobile definition software". It can realize software and hardware decoupling, form stronger OTA iterative upgrade ability, and provide more personalized software services. However, it is different from the signal-oriented architecture in the traditional automotive electronic and electrical architecture, which puts forward higher requirements for software development processes, methods and tools. Art SOA developer platform is mainly for OEM developers, and can provide corresponding development tools and development modules, which will help to improve development efficiency, shorten the iteration cycle, and improve the company's automotive digital full-stack solution service matrix.
Spare parts business gradually develop, develop skateboard chassis and ODM and other innovative business, to achieve R & D + manufacturing two-wheel drive. Centering on powertrain technology, the company has successively promoted the development and mass production of parts such as V6 engine, new energy reducer, coupler, extender and DHT gearbox assembly. since July 2022, the company has supplied DHT gearbox assembly to Shangtong Wuling. Looking forward, we believe that Art has gradually established a rich new energy power system product matrix and entered the supply system relationship among mainland China, Guangzhou Automobile Honda, Dongfeng Honda and Shangtong Wuling, and the growth of spare parts business is expected. In terms of innovation business, the skateboard chassis business of gecko technology is progressing smoothly, and ODM already has orders on hand. We believe that innovation business is an important direction of the company's technology industrialization and is expected to achieve new business growth points.
R & D design business full of orders-on-hand to support short-term performance, carry out the second phase of buyback to enhance development confidence. The company's stock is full of orders on hand, considering that most of the orders can be delivered within a year, we believe that with the gradual progress of auto companies' resumption of work and production in the second quarter, the company's stock orders are expected to accelerate the landing and accelerate the pace of revenue recognition. In addition, the company announced on August 9 that it plans to carry out the second phase of share repurchase for the implementation of employee stock ownership plan or equity incentive plan, the repurchase price is not more than 25.26 yuan per share. We believe that the company's current design business is full of orders-on-hand, parts performance is developing smoothly, and there is no need to worry too much about 2Q's performance; in this context, the company issued the second phase of the buyback plan, which fully shows the management's confidence in the company's long-term development.
Profit forecast and valuation
Keep profit forecasts for 2022 and 2023 unchanged. The current share price corresponds to 22 24x/18xP/E 23 years. To maintain the outperform industry rating, taking into account the downstream off-season effect, we lowered our target price by 8% to 23 yuan, corresponding to 22max 23-year 38-pound 28-fold Pmax E, which has 60% upside compared to the current stock price.
Risk.
The growth of new orders is not as expected, the expansion of new business is not as expected, and the epidemic is repeated.