The Zhitong Finance App learned that Fangzheng Securities released a research report saying that advanced intelligent driving is ready, and high-precision maps have ushered in new opportunities for development. On the one hand, as a safety guard for advanced intelligent driving, high-precision maps are safety redundancy for multiple integrated sensing during the assisted driving stage. For car companies that pay special attention to safety and compliance, high-precision maps still have unique and undeniable value. On the other hand, high-precision maps are basic applications for data construction. They can not only provide accurate geographical information, but also provide real-time environmental perception and route planning for vehicles, greatly improving driving safety and comfort.

Fangzheng Securities's views are as follows:

High-grade intelligent driving is ready, and high-precision maps usher in new opportunities for development:

Along with the trend of intelligent automobiles, the penetration rate of intelligent driving is growing rapidly, and the price of intelligent connected vehicles that can provide L2+ and above experiences has dropped to the 200,000 to 300,000 yuan range. High-precision maps, on the other hand, have fully benefited from the drop in the price of smart driving models. On the one hand, as a safety guard for advanced intelligent driving, high-precision maps are safety redundancy for multiple integrated sensing during the assisted driving stage. For car companies that pay special attention to safety and compliance, high-precision maps still have unique and undeniable value. On the other hand, high-precision maps are basic applications for data construction. They can not only provide accurate geographical information, but also provide real-time environmental perception and route planning for vehicles, greatly improving driving safety and comfort.

Lightweight high-precision maps are gradually becoming mainstream, and traditional pain points have been overcome:

Traditional high-precision maps have pain points such as extremely high surveying and mapping costs, difficult coverage, and insufficient update frequency, so map manufacturers have launched lightweight high-precision maps. By slightly reducing the accuracy requirements of maps and upgrading the algorithm, the abundance of elements has been moderately cropped, and at the same time, a crowdsourced model for automatic updating of high-precision maps by a large number of social vehicles has been adopted, thereby reducing the production, storage and use costs of high-precision maps. In the future stage of fully autonomous driving, “multi-dimensional collaboration” including human-vehicle collaboration, vehicle-road collaboration, and space-space (ground/underground) collaboration will be the main implementation method. In the future, maps need to have the ability to collaborate with more information sources such as 5G/6G communication, Beidou high-precision positioning, low-orbit satellites, drones, etc., and the importance of high-precision maps is becoming more and more prominent.

High-precision map market concentration is high, and strict entry qualifications form a high industry barrier:

The drawing of high-precision maps requires a Class A surveying and mapping qualification for the production of navigation electronic maps, and the threshold for obtaining and maintaining them is high. Previously, only 19 of the 31 companies that obtained Class A qualifications passed the review, showing a trend of tightening qualification approval. High entry barriers restrict companies from entering the industry, so the market concentration is high. Baidu Map, Sidimensional Tuxin, and Gaode Map occupy most of the market share due to their first-mover advantage and technical support, forming a three-legged pattern where Internet giant BAT dominates. However, other startups seek living space through differentiated competition. Among them, Yitutong has risen to prominence and has been in the top five in recent years. Strict license qualifications create a moat for the industry, and the threat to potential entrants in the short term is still low.

Investment advice:

It is recommended to focus on Zhongke Xingtu (688568.SH): a leading domestic enterprise in the development and industrialization of digital earth products. Strategic cooperation with Changguang Satellite to accelerate the development of remote sensing satellite applications. At the same time, the layout is dark blue to create a new curve of business growth.

Four-dimensional Tuxin (002405.SZ): A scarce target for high-precision A-share maps, has been deeply involved in the high-precision map industry for many years; launched smart driving products with scene map functions, and received orders from many customers; using integrated smart driving solutions as the main line of business, becoming a supplier of intelligent automotive solutions.

Aerospace Hongtu (688066.SH): Has a grade A qualification for map surveying and mapping, has the ability to provide safe and compliant processing of map results data, and is a potential cross-border high-precision map supplier; the self-developed PIE-Engine remote sensing cloud service platform targets the Google Earth platform and gradually realizes the business layout of the entire industry chain;

Risk warning: the risk of automobile intelligence falling short of expectations, the risk of technological path changes, the risk of autonomous driving policies falling short of expectations, and the risk of imperfect industry laws and regulations.