Core viewpoints

1. In 2022, the company achieved revenue of 3.25 billion to 3.45 billion yuan, an increase of 6.21% to 12.74% over the same period last year. Revenue growth was in line with expectations. Structurally, new businesses such as intelligent driving increased significantly. The company's net profit loss in 2022 was 365 million yuan to 281 million yuan, down 399.13% to 330.10% from the same period last year, mainly affected by the epidemic situation, commercial vehicle market environment and other negative factors.

two。 The company has increased the layout of the intelligent driving field, and the software and hardware products and solutions of the autopilot assistant system have been continuously signed mass production orders and shipped one after another, and the intelligent driving business has grown significantly.

3. In terms of smart core, the car gauge-level MCU chip has been mass produced in a number of automobile brands through Global and local Tier1 manufacturers, and will continue to be sold in the future.

Event

The company released its performance forecast for 2022 on January 18, 2023. It is expected to achieve revenue of 3.25 billion to 3.45 billion yuan in 2022, up 6.21% to 12.74% over the same period last year. The net profit lost by the parent company was 365 million yuan to 281 million yuan, down 399.13% to 330.10% from the same period last year. Deducting the loss of non-net profit from 365 million yuan to 281 million yuan, it decreased by 706.19% to 566.30% compared with the same period last year.

Brief comment

1. The company's revenue has increased steadily, and the decline in commercial vehicle sales in 2022 has a significant impact.

In 2022, the company achieved revenue of 3.25 billion to 3.45 billion yuan, an increase of 6.21% to 12.74% over the same period last year. The slowdown was mainly due to the decline in commercial vehicle cockpit business and government and enterprise business affected by the epidemic. The median net profit was-323 million yuan, compared with 122 million yuan in the same period last year. From profit to loss. According to the median estimate, Q4 revenue in a single quarter was 1.272 billion yuan, an increase of 6.27% over the same period last year and 79.15% month-on-month growth, which was basically in line with expectations.

According to the China Automobile Association, from January to November 2022, the production and sales of commercial vehicles were 2.927 million and 3.01 million, down 31.9% and 32.1% from the same period last year. It is estimated that the total sales of commercial vehicles in 2022 will be 3.3 million, down 35.3% from the same period last year. Affected by the market environment, the company's brain module business revenue fell sharply. At the same time, affected by the epidemic and macro-economy, the progress of government-enterprise business cooperation and project acceptance has been delayed, which has a significant impact on income. And the amortization expense of the company's equity incentive also has a negative impact on the company's performance.

two。 With the deepening of the automobile intelligent strategy, the business of smart driving and smart core has increased significantly.

In 2022, the company further deepened the landing of the automobile intelligent strategy, the R & D investment continued to grow, and the smart car and smart core business continued to expand. In terms of intelligent driving, self-driving assistance system software and hardware integrated products and solutions continue to sign mass production orders and ship one after another, achieving significant growth in revenue; in terms of smart core, car specification-grade MCU chips have been mass-produced in a number of automobile brands through Global and local Tier1 manufacturers. Taking into account the current high gross profit margin of MCU chips and the supply shortage will continue, we expect the related business to have a better revenue and profit performance. The company's new generation of smart cockpit chips continue to ship and have been assigned new mass production models from a number of passenger and commercial vehicle customers. most of the projects will begin mass production in 2023. Smart core business is expected to become one of the company's main growth points in the future.

3. Profit forecast and investment advice: as a leading company in domestic high-precision digital maps, the company has accumulated profound knowledge in the fields of maps and intelligent cars. With the steady recovery of the company's Zhiyun and intelligent module business, and the rapid growth of the smart car and smart core business, we expect the company's 22-24 net profit to be-3.26 / 1.53 / 209 million yuan, maintaining a "buy" rating.

4. Risk Tips:

1. The development of the smart car industry is not as expected, resulting in the risk that the company's automobile intelligence related business is not as good as expected.

two。 The impact of the epidemic and macro-economy leads to the delay in the acceptance of related projects and the risk that the related business of the company does not meet expectations.

3. The recovery of consumption after the epidemic is not as expected, and the sales of commercial vehicles and passenger vehicles are not as expected.

4. The risk of a decline in prices and gross profit margins as a result of increased market competition

5. The risk that the profit forecast hypothesis is not valid: the profit forecast makes assumptions to predict the sales volume of the company's products based on the demand in the downstream application areas of the company. Take MCU and SOC chips as an example, if shipments drop by 10%, there is a risk that the company's revenue will decline to a certain extent.