NavInfo (002405): Short-term performance under pressure and front-loading capacity is again recognized by mainstream car manufacturers
Event: The company released three quarterly reports: the first three quarters of 2019 achieved operating income15.
350,000 yuan, an increase of +0 in ten years.
76%, net profit attributable to mother is 2418.
480,000 yuan, a decrease of 88 per year.
97%, the net profit attributable to the mother is within the company’s performance forecast range.
The company signed a service agreement with Daimler to provide connected car services including online maps, POI search, charging stations, gas stations, weather and air index for Mercedes-Benz’s connected car in China.
Investment Summary: The automotive business is under pressure and R & D continues to be heavily invested.
In the first three quarters of 2019, the company’s revenue is flat every year, and its net profit is extended at least, and the overall business of the company is under pressure due to the auto market replacement.
The company’s in-vehicle business mainly comes from navigation electronic maps and automotive chip business. Among them, the downstream customers of the automotive chip business are mainly independent brands and aftermarkets. Domestic passenger car sales fell from January to September by 11.
7%, the sales volume of passenger cars of independent brands decreased by 18 every year.
The increase in net profit was mainly due to the expansion of the joint-stock company Mapbar, which reduced investment income.
The company is still in the expenditure period of high-precision map research and development, and the expense ratio continues to be high, of which the research and development expense ratio is 46.
29%, the management expense ratio is 18.
08%, sales expense ratio 4.
We are optimistic about the potential of new business, and the business layout will boost core business.
The company is the most well-established company in the field of high-precision maps in China. We believe that the company’s layout in the areas of map production, standard formulation, and advanced positioning will continue to be transformed into the company’s technical barriers, helping the company’s technology capabilities continue to lead.
The company launched the new three-generation platform FastMap, which integrates the application of new technologies of big data and artificial intelligence to realize the integration of the entire map production process from detecting changes, processing changes to publishing changes, and real-time return of sensor data based on daily scale to realize automatic editingAnd hourly updates.
The company’s AR navigation has achieved mass production. It is equipped with on-board AR navigation for all FAW Pentium T99 models. The AR real-world navigation set integrates calculation and multi-parameter AI recognition to enhance the visual effect of navigation information and give users more intuitive and accurate instruction information.
The company’s subsidiary Liufen Technology locates the advanced positioning business, and the R & D and commercialization of advanced products are continuously strengthened. It will form high-precision positioning and maps to fly together, and jointly promote autonomous driving-related businesses, and business capabilities are released.
With technology upgrades and 南宁桑拿 5G and policies to promote the development of connected cars, OEMs generally set the time decoding for L3 autonomous driving around 2020, and intelligent driving will develop from low-level assisted driving to higher-level intelligent driving.
Precision maps, as a collection of environmental data required for driving decisions, are far more valuable than traditional car navigation maps. We believe that the industry’s research and development direction is accurate to the precision map surveying and turning to the automated production of maps, real-time updates and higher maps.Of cross-border applications, the value of data is self-evident.
Profit forecast and investment advice: We believe that the company has been deeply navigating the navigation map industry for many years, and has established deep technical barriers in the field of high-end maps for autonomous driving. The fixed-point cooperation of mainstream OEMs has verified the company’s R & D strength and can drive autonomously in multiple dimensions.With rapid progress, the company is expected to become a high-precision data company with a high-precision map.
We expect the company to achieve operating income in 2019-2021.
5.6 billion, net profit attributable to mother 3.
4.5 billion, covering for the first time, giving a “buy” rating.
Risk warning: Advanced map development is worse than expected; passenger car sales continue to decline