Event Overview: according to Huawei Cloud official account, Huawei Cloud and Siwei Tuxin signed a strategic cooperation agreement on November 16, 2022. The two sides will carry out in-depth cooperation in cloud computing technology, as well as self-driving, Internet of things, smart city, smart park, smart community, smart transportation, smart supply chain and other industries.
The foundation of historical cooperation is solid, and the prospect of cooperation in the future is promising. 1) Cooperation history: since 2019, Siwei Tuxin has launched preliminary cooperation with Huawei Cloud in high-precision maps, cloud and other fields. with the rise of the new energy industry, the self-driving industry based on map data and digital twins is developing rapidly. the cooperation between the two sides has also been gradually deepened. The company has signed an agreement with Huawei to provide comprehensive data and technical support to Huawei's petal Petal map and its derived application services and its map development platform. 2) the significance of this strategic cooperation: Siwei Tuxin is a provider of automotive intelligent solutions, while Huawei Cloud can provide strong cloud computing capabilities and work together to enable changes in the automotive industry. Specifically, 4D Tuxin has a lot of map data and self-driving data, while Huawei Cloud can provide cloud computing capabilities and has the potential for cooperation in scenarios such as car company data compliance closed loops and smart cities.
3) more long-term cooperation in the future: the two sides will strengthen research and cooperation in transportation, automobile, geographic information and other fields, and achieve industrial integration and co-construction in the fields of Internet of things, smart city, intelligent travel, smart car and so on. Achieve win-win results.
Self-driving and other fields cooperate closely to achieve win-win results. 1) in terms of Zhiyun business, the company provides car-level SD maps, ADAS maps, HD maps, AVP maps, high-precision positioning and cloud integration services based on it, as well as big data platform and integrated solution for MineData location. The connotation of the company's Maas business continues to expand, signing service orders and cooperation agreements with BMW, Daimler, Volkswagen, Volkswagen, Ford and other core OEM, as well as car-building new forces and technology giants, to carry out POC verification of compliance programs and the implementation of mass production orders. The construction of the relevant compliance platform needs strong cloud computing capabilities to support it. 2) in terms of intelligent driving business, the company has been able to provide L2 self-driving assistant system software and hardware solutions, including adaptive cruising, lane departure warning, automatic emergency braking and other functions, and continue to expand into other sub-areas. The demand for data storage and data computing will continue to increase. Therefore, on the whole, the strategic cooperation between the company and Huawei Cloud will promote the development of the company's intelligent driving business.
At the same time, in areas such as the Internet of things and smart cities, the company can form a strong ecological cooperation ability with Huawei Cloud in project acquisition and implementation, thus forming a win-win situation of cooperation between the two sides.
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. With reference to the company's performance in the first three quarters and downstream prosperity, and taking into account comprehensively, the company's profit forecast for 2022-2024 is expected to be 2.83 million yuan, respectively, corresponding to PE of 105X, 66X and 40X, 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.