Report name: Desai Siwei (002920) — Grasp cockpit electronics and look to an intelligent future
Researchers: Wang Liusheng, Cun Simin, Shi Yang
Report Type: Company Research*In-depth Report
Date of report: 20200102
Industry/Sub-Industry: Auto Parts
Company Name and Code: Desai Seaway (002920)
Investment advice: prudent recommendation - A
[Summary of contents]
We have been deeply involved in automotive electronics for more than 30 years and have grasped the trend of cockpit electronics upgrades. The predecessor of the company was the NetherlandsPhilipsThe Hong Kong Jinshan and Huizhou Industrial Development Corporation was established as a joint venture, and then switched from foreign investment to domestic investment, retaining the excellent management level of foreign investment and a high-quality customer base, and being deeply involved in the automotive electronics field for more than 30 years, and becoming a leading domestic cockpit electronics enterprise. The company has entered the supporting systems of most high-quality automakers, has excellent R&D capabilities and rapid response capabilities, and grasps the gradual upgrading trend from single cockpit electronics to intelligent cockpit electronics in the field of cockpit electronics. Currently, the downstream car market is gradually showing a trend of structural recovery. Considering future new orders combined with changes in customer structure, the company's cockpit electronics business is expected to improve marginally, and the overall profit pressure will be relieved.
The ADAS business is expected to expand, and more intelligent driving businesses are expected to be mass-produced. Currently, the company has a research and development team of more than 2,000 people, of which 40% are software developers, with a deep layout in the field of intelligent driving. Among them, high-definition surround view systems, automatic parking systems, etc. have been supplied in batches. As ADAS functions continue to penetrate the trend of medium and low cost models, the company's related business is expected to enter a period of rapid growth in the future. In the field of higher-level intelligent driving, the company has a number of technical reserves and will continue to invest in research and development. The 24GHz millimeter wave radar has mass production capacity, and the 77 GHz millimeter wave radar and the autonomous driving domain controller IPU03 are expected to be mass-produced.
The Internet of Vehicles was laid out, and commercialization was gradually realized. The company began to lay out the Internet of Vehicles business in 2017. In 2018, the company set up an Internet of Vehicles business unit and established a professional R&D team. It has now independently mastered core technologies such as cloud-based online upgrade technology, network security technology, big data analysis and application technology. Currently, it has obtained Internet of Vehicles platform, OTA, and contextual intelligence projects from customers such as FAW-Volkswagen, Chery Jaguar Land Rover, and Changan Mazda. In addition, the company's T-BOX products have been mass-produced on a number of international and independent brand models, and V2X products (vehicle road collaboration) have received project targets from international brand car manufacturers, and mass production is expected later.
Risk warning: The recovery of the car market falls short of expectations; the implementation of intelligent driving business falls short of expectations
[End of summary]