Summary of events: the company released its three-quarter report on October 28, 2022, with revenue of 2.078 billion yuan in the first three quarters, an increase of about 12% over the same period last year, and net profit of-59 million yuan, down 41% from the same period last year.
Intelligent field continues to get important orders, intelligent driving leader shows its own strength.
1) in August 2022, the company won a cooperation order issued by a domestic new energy vehicle company B. The company will work with the internal team of the depot to develop the software and hardware solution of the L2 autopilot assist system. Mass production will be achieved on several models from the end of 2022 to the end of 2024.
2) according to the company's semi-annual report, in June 2022, the company received a fixed-point notice, it will provide an integrated software and hardware solution of the L2 automatic driving assistant system, including adaptive cruising, lane departure warning, automatic emergency braking and other functions, for some models of a domestic head car factory that are put on the market from September 2022 to September 2027.
The landing of important orders reflects the company's own strength and is expected to lay an important foundation for follow-up long-term development.
At the same time, focusing on technological innovation, the company continues to increase investment in research and development, and has successively launched a full-scene cross-domain fusion scheme of integrated transportation and berthing, and cut into different application scenarios through cooperation.
The chip business continues to develop, and the first buyback reflects the company's confidence. 1) in terms of cockpit chips, Jefa's SoC chips will develop, plan and arrange new products in both low-end (covering many fields) and high-end (mainly high-end computing). The new generation of intelligent cockpit chips AC8015 and AC8257 continue to ship, have mass production in both domestic and overseas models, and have been assigned new mass production models by a number of passenger and commercial vehicle customers, and most projects will start mass production in 2023.
2) MCU chips, through Global Tier1 such as Honeywell International Inc, as well as local Tier1 manufacturers, have achieved mass production in a number of automobile brands.
3) TPMS tire pressure monitoring chip, the production capacity continues to climb, the product performance indicators have been widely recognized by customers.
At the same time, on September 16, 2022, the company issued an announcement on the first repurchase of the company's shares, with an estimated repurchase amount of 300 million to 500 million; as of September 30, the company has completed 124 million repurchases. Active buyback reflects the company's confidence and lays the foundation for long-term development.
Investment suggestion: 2022 is a key year for the development of the company's cloud business such as "map data + compliance security". At the same time, considering the company's advantages in chips and other areas, the company is optimistic about the company's long-term development prospects. It is estimated that the company's homing net profit from 2022 to 2024 will be RMB 6.01 billion, corresponding to PE of 46X, 27X and 18X respectively, maintaining the "recommended" rating.
Risk tips: the impact of fluctuations in the global car market; the process of business integration is not as expected; the process of research and development of new technologies is not as expected; the impact of epidemic fluctuations; the impact of chip shortage; the demand for smart cars is not as expected.