Event: on the evening of August 21, 2023, the company announced that 2023H1 realized revenue, return net profit and deducted non-net profit of 1.501 billion yuan (yoy+9.71%),-295 million yuan and-296 million yuan respectively. In the company's main business, Zhiyun, intelligent module, chip and smart car account for 58.49%, 16.16%, 14.85% and 9.59% of the revenue, respectively.
At a time of transformation, short-term income is under pressure, and smart driving has become the main force of income growth. At present, the company is transforming from Gaojing Map Company to Tier1. The company focuses on the automobile intelligent main track, further clarifies the business main line of the intelligent driving as the leading solution provider, and develops the four major business sectors: Zhiyun, Zhiqiu, intelligent module and smart core. Revenue from the smart driving business increased by 41999.87% in the first half of the year compared with the same period last year. Due to the self-driving assistance system software and hardware integrated products and solutions continue to sign mass production orders and shipments one after another, resulting in a substantial increase in the revenue of the intelligent driving business. During the reporting period, the company has reached strategic cooperation with Niomo Zhihang, Horizon, Renesas and Chu Hang Technology in the field of automotive intelligent technology and products.
Smart core business develops in SOC products, while Zhiyun business grows steadily. The company's chip shipments continue to increase, and its products cover mainstream vehicle factories and first-class suppliers at home and abroad. On the SoC side, the cumulative shipments of Jefa Technology SoC chips exceeded 75 million; the new generation intelligent cockpit chip AC8025 is officially lit, and plans to achieve mass production and application in a number of new models MCU by the end of the year, the company's second fully localized supply chain MCU has been lit up and entered the stage of mass production, and a higher performance domain-controlled multi-core MCU chip is also under development. In terms of Zhiyun's business, the company plans to release lightweight map solutions with high freshness and high coverage to meet the needs of the NOA market. The OneMap platform continues to improve to meet the diversified needs of customers for different levels of autopilot development. While ensuring the delivery of important customer projects, support the navigation, man-machine co-driving, parking, self-driving and other multi-domain function development needs of strategic customers such as BMW and Toyota.
The birth of a new type of Tier1 actively participates in the construction of national standards and promotes the development of the industry. The company actively participates in industry and industry co-construction, together with the Ministry of Industry and Information Technology, the Ministry of Natural Resources and other government departments to discuss and promote the research and development of key common technologies such as high-precision map data collection, return, audit, encryption, dynamic update and related laws and regulations. Participate in the construction of regional intelligent network automobile test and application base and major industrial projects, and jointly build a "national" key dynamic high-precision basic map platform. The company has established strategic cooperative relations with leading domestic and foreign enterprises, such as Changan Automobile, Xiaoma Zhixing, Honeywell International Inc, Sinochem, Maomo Zhihang, Huawei Cloud, Horizon and so on, so as to lay a foundation for the company to continue to consolidate its position in the industry and expand the ecology of industrial cooperation.
Investment suggestion: the company is in the critical stage of changing from high-precision map business to intelligent driving business, and has reached strategic cooperation with companies such as Mimo Zhixing and Horizon in the field of automotive intelligent technology and products, and the strategic transformation has achieved important success. Smart driving business has become a source of long-term growth, and short-term fluctuations in income do not change long-term expectations.
We estimate that the company's homing net profit from 2023 to 2025 will be 371 million yuan, respectively, and the corresponding PE will be 580X, 200X and 65X respectively, maintaining the "recommended" rating.
Risk hint: there is uncertainty in the change of prosperity in the industry; the competition between autopilot and high-precision map industry intensifies.