Jingu Wealth News | Caitong Securities issued a research report stating that Imotionautotech (01274) continues to maintain high R&D investment. The company's R&D investment from 2021 to 2023 was 0.055/0.104/0.217 billion yuan, with year-on-year growth rates of 24.48%/89.36%/108.20% respectively. As of 1H2023, the company's R&D personnel accounted for 74.2%. The company has developed two major types of autonomous driving algorithms and independently developed software middleware to improve product adaptability and iterative efficiency. The company cooperates with top third-party map makers to form a cloud platform data closed loop, enabling continuous iteration of algorithms. In October 2023, the company established a subsidiary in Germany to continuously explore overseas business opportunities.
The bank stated that according to Frost & Sullivan's forecast, by 2024, China's passenger vehicle with autonomous driving sales volume will reach 13.4 million units, and is expected to reach 20.9 million units by 2027. With the continuous increase in sales volume, the penetration rate is expected to continue to rise. According to Frost & Sullivan's forecast, the penetration rate of autonomous driving in China is expected to reach 55.20% by 2024, and 81.70% by 2027. The outlook for the autonomous driving domain controller market is broad. According to Frost & Sullivan's forecast, the size of China's autonomous driving domain controller market is expected to reach RMB 91.5 billion in 2027, with a CAGR of 56.33% from 2022 to 2027.
The bank further pointed out that the company is a leading enterprise in the field of autonomous driving domain controllers in China. In the future, with the mass production of self-developed products and the increase in market penetration rate, the performance is expected to reach a turning point. The bank expects the company to achieve revenue of 1.759/2.395/2.642 billion yuan and a net income attributable to the parent company of -0.103/-0.006/0.059 billion yuan from 2024 to 2026. The corresponding PS valuations for 2024-2026 are 2.82/2.07/1.88 times, and the corresponding PE for 2026 is 85.31 times. It is first covered with a "shareholding" rating.
