Key points of investment
According to the company's announcement on September 2, 2022, Xuanyuan Smart Driving, a wholly-owned subsidiary of the company, recently received the “Component Development and Trial Production Notice” from GAC Aian. The technical plan for the infrared (night vision) camera submitted by Xuanyuan Intelligent Driving can meet the requirements of GAC Aian, and can carry out preliminary work on development and trial production first. Xuanyuan Smart Driving undertakes the manufacturing and supply of infrared (night vision) cameras in the notice. The matter will not have a significant impact on the company's 2022 operating results.
According to the company's announcement, this cooperation follows the successful application of the company's infrared-assisted driving system in Dongfeng “Warrior Technology”
After the luxury electric off-road vehicle front-loading project, another target was completed in the domestic passenger car infrared front-loading project. In the future, mass production will be carried out according to the requirements of the car manufacturer's node according to the model. This in-depth cooperation between Xuanyuan Smart Driving and Dongfeng and GAC, two major domestic car manufacturers, is expected to accelerate the company's subsequent cooperation process with other car companies in the passenger car and commercial vehicle fields.
The infrared thermal imaging system can clearly image in scenes such as insufficient light, strong light and glare, high-speed fog, wind, sand, and dust, etc., and can enhance the driver's visual perception ability around the clock. With the maturity of infrared detector wafer packaging technology, the cost of next-generation infrared thermal imaging obstacle avoidance systems has dropped significantly compared to before. According to the Electronic Engineering World Network, in the field of passenger cars, as early as 2000, infrared night vision technology was already applied to the Cadillac DeVille. Since then, some models such as BMW, Audi, Mercedes-Benz, and Rolls Royce have also applied infrared night vision technology.
GAC Aian (formerly known as GAC New Energy) is a new energy vehicle brand owned by Guangzhou Automobile Group Co., Ltd.
According to a report by China Economic News Network on September 2, in August 2022, GAC Aian sold 2,7021 units, ranking first in the sales volume of new energy passenger vehicles in China; in January-August, it sold a total of 15,305 units, an increase of 134% over the previous year.
We adjusted our profit forecast. It is estimated that the company's net profit for 2022-2024 will be 1,206/15.51/1,905 billion yuan, and EPS will be 0.37/0.47/0.58 yuan/share respectively. The PE corresponding to the closing price of September 2 will be 41.6/32.3/26.3 times, maintaining the “prudent increase in holdings” rating.
Risk warning: Product delivery progress falls short of expectations, new product development falls short of expectations, and industry competition is intensifying.