Leading intelligent transportation product provider, vehicle and road collaborative accelerated convergence, covering for the first time given "buy" rating company is China's leading intelligent transportation and Internet of things core equipment and solution provider, with ETC, RFID, V2X and other areas of core technology, around cars, roads, cities, farms, to provide end-to-end solutions for the government, operating units, end users, etc. Business covers 30 provinces and cities and more than 30 countries around the world.
ETC's RSU and OBU will usher in a new round of replacement demand; urban scenes such as urban parking lots and gas stations will bring new demand for ETC equipment; with the coordinated integration of vehicles and roads and the gradual release of V2X equipment, the company will begin its layout in 2013, and it is expected to continue to seize market leading share by virtue of ETC's leading edge, and its performance is expected to grow at a higher speed. We predict that the company's 2020Universe 2021Universe will achieve a home net profit of RMB 747,045,1453 million in 2022, with an increase of-14.6%, 39.8%, 39.1%, and 4.14, respectively, corresponding to PE of 5.78, 8.05, and the current share price is 9.4, 6.8, 4.9 times, respectively, with a certain valuation advantage. It is covered for the first time and given a "Buy" rating.
The ETC layout extends from the highway to the city scene, the industry market is vast, and the high performance growth can be expected. Relying on its own brand, technology and marketing service advantages, the company has a high market share in the ETC segment and has business all over the country. With the large-scale popularization of ETC, ETC will play a greater role in the field of intelligent transportation in the future, and the development of ETC will enter the stage of ETC+. The huge user base of 200 million ETC vehicles in the country has laid a solid foundation for ETC to expand to the urban scene outside the highway. ETC will extend from highway non-stop toll collection to a wider range of urban application scenarios, including urban smart parking, urban traffic management, gas station scene, car consumer market and so on. The demand for ETC-related equipment will continue to grow.
V2X market is waiting to blossom, the company takes the lead in the layout of vehicle-road coordination, and the performance is expected to further increase. As the future development direction of intelligent transportation and intelligent network-connected vehicles, V2X has become the general consensus of the country, social capital and transportation industry. At present, the V2X vehicle equipment market is in the initial stage of large-scale application, waiting for volume. The company began to layout vehicle-road coordination in 2013, and has taken the lead in successfully developing car communication modules and a number of V2X core products, which have been successfully applied in many projects. With the continued prosperity of V2X, the company is expected to further seize market share and consolidate its leading position in the industry by virtue of ETC market advantage.
Risk hints: the risk of large inventory size; the risk of market competition; the risk of bad debts in accounts receivable.
