The Zhitong Finance App learned that at the end of 2023, Northeast Securities released a research report saying that at the end of 2023, China had 20.41 million new energy vehicles, and annual production and sales reached 9.587 million units and 9.495 million units, with year-on-year growth rates as high as 35.8% and 37.9% respectively. The incremental penetration rate of new energy vehicles jumped to 31.6%, +6pct year on year. The “new four modernizations” of automobiles (electrification, connectivity, intelligence, sharing) have become mainstream in recent years, and the automotive aftermarket has ushered in new opportunities for development.

Related targets: Changjiu Logistics (603569.SH), Xianhui Technology (688155.SH), Langxin Group (300682.SZ), Daotong Technology (688208.SH), Teruide (300001.SZ), Jieshun Technology (002609.SZ), Cube Holdings (833030.BJ), Sanyangma (001317.SZ), Desai Xiwei (002920.SZ), Zhongke Jincai (002657.SZ), Neusoft Group (600718) .SH), Wanma Technology (300698.SZ).

The main views of Tohoku Securities are as follows:

The increase in the penetration rate of new energy vehicles will bring development opportunities to charging pile operators and unmanned charging stations

From 2020 to 2023, the number of charging pile infrastructure in China increased from 1.681 million units to 5.21 million units, with a CAGR of 45.8%, focusing on opportunities related to charging operators and unmanned charging. Polymeric charging builds a digital hub that matches the supply and demand of vehicles/piles. In 2030, the market space for converged charging is nearly 6 billion. Furthermore, with the increase in driverless cars, charging stations will need to be upgraded once again to advance to unmanned services. It is estimated that 33 million unmanned charging stations will be needed in 2030.

China's smart cockpit market grew from 44.1 billion yuan in 2019 to 73.9 billion yuan in 2022, with a compound annual growth rate of 18.8%. Due to factors such as rapid model changes and the addition of new domestic forces, the smart cockpit assembly rate of the 100,000-750,000 mid-to-high-end models in the Chinese market is high, all over 50%, bringing development opportunities to related segments such as smart cockpit domain controllers and HUDs.

Increased penetration rate of new energy vehicles promotes the development of the smart parking industry

The smart parking market will reach 21.6% CAGR in 2016-2022, and the smart parking market will reach 22.98 billion yuan in 2023. Demand for charging facilities has increased along with the increase in the penetration rate of new energy sources. Smart parking systems need to integrate the layout and use of charging piles, which has promoted the development of smart parking systems towards integrated charging solutions. Furthermore, through intelligent communication with the vehicle, the smart parking system can achieve more intelligent parking management, such as automatically guiding to idle charging piles, reserving charging, etc.

In the era of new energy vehicles, applications related to using vehicle data to calculate premiums ushered in development space

The overall scale of NEV insurance premiums in China is rapidly expanding. The average premiums for new energy models are much higher than fuel vehicles; high NEV premiums are mainly due to excessive insurance rates and high maintenance costs for new energy vehicles. Due to the huge differences in the probability of problems occurring in different usage scenarios, different usage frequencies, and different brands of vehicles, the profit margins of applications related to using vehicle data to calculate premiums have been expanded.

The development of the second-hand NEV market brings development opportunities to applications related to battery valuation

From January to December 2023, a total of 763,000 new energy used vehicles were traded nationwide, +42% over the same period last year. The degree of battery attenuation is a key factor in the evaluation of new energy used vehicles. Merchants only rely on external performance such as battery life to reverse battery power. Therefore, the current three-electric evaluation of new energy used cars is inaccurate. Many merchants are very conservative in their valuations. Manufacturers with battery data that can construct battery valuation models will fully benefit from the rapid development of used new energy vehicles.

Risk warning: NEVs and NEV aftermarket development falls short of expectations.