Glonghui, May 5, 丨 Dongwu Securities released a research report on May 3. It is estimated that Yingheng Technology's net profit for 2023-2025 will be 540 million yuan, 680 million yuan, and 800 million yuan respectively, +31%, +25%, and +19% respectively. The corresponding PE corresponding to the current price (April 3) is 9 times, 7 times, and 6 times respectively. Considering the company's rich customer resources and full orders in hand, it is expected to enter Hong Kong Stock Connect to improve liquidity in the future, covering the “buy” rating for the first time. According to the Dongwu Securities Research Report, Yingheng Technology is a leading automotive electronics solution provider in China, and its performance in driving new energy continues to soar. In 2022, the company achieved revenue of 4.83 billion yuan, +52% year on year; Guimu's net profit was 415 million yuan, +107% year on year. Intelligent core card slots, product expansion volume and price have risen sharply. The intelligent business is the company's fastest growth engine. In 2022, the company's smart driving networking business achieved revenue of 250 million yuan, +151% year on year. The company collaborated deeply with Horizon to strengthen development and application capabilities in autonomous driving and AI technology to provide L2+ level autonomous driving solutions. The company has established a vehicle-level autonomous driving test laboratory and an autonomous driving simulation test and verification platform. Asset-light operations are compounded by high investment in R&D, and business models are relatively scarce. The company has a unique business model. By purchasing semiconductor devices and combining its own program design to provide solutions for automotive OEMs or Tier 1 or automotive electronic PCB-A, gross margin reached 21.5% in 2022. The company is an asset-light model. Manufacturing is outsourced. It has its own large-scale R&D center in Shanghai, covering electrification (three electronic controls, auxiliary control, thermal management), intelligence (intelligent driving range, millimeter wave radar, cockpit controller), hydrogen fuel vehicle products, etc. Judging from the direct business model benchmarking, the company does not have a completely consistent comparable company. Its advantages are control of upstream chips, its own R&D strength and asset-light operation, and extensive layout and experience accumulation of automobile product lines. The company's customers include Chinese automakers and 981 active tier 1,22H1 customers. Under the downturn in the automobile industry and the overall price war, the company was relatively unaffected. Currently, there are plenty of orders in hand, and it is expected that it will maintain a high growth rate.