NavInfo (002405) Interim Report Comments: Short-term performance is under pressure and waits for the turning point of the industry
The short-term performance is under pressure and does not change the fine flour, maintaining the “Buy” rating of 19H1, and the company achieved operating income of 10.
84 ‰, an increase of 9 in ten years.
43%; net profit is 8560.
30,000 yuan, down 47 every year.
56%, net profit after deduction of 61.55 million yuan, an annual extension of 54.
We believe that the company’s revenue growth is faster than expected and net profit is higher than expected. We believe that its primary reason is the increase in the cost of navigation and connected car related businesses and the continuous expansion of connected car related companies (Mapbar).
We believe that the company has a broad layout in the field of intelligent driving. After the inflection point of the industry comes, it is expected to usher in the next wave of high-speed development. It is expected that the EPS for 2019-2021 will be 0.
32 yuan, maintain “Buy” rating.
Navigation business: Passenger cars have been under pressure to reduce pressure, and navigation business has grown against the trend. In the first half of the year, navigation business achieved revenue.
410,000 yuan, an increase of 7% in ten years.
We believe that the revenue growth of the electronic navigation business is better than expected.
Navigation business and passenger car sales in China were 1012.
70,000 vehicles, down 14% a year.
From January to June 2019, the monthly sales volume of passenger cars in China were 202/121/202/158/156/173 million units, sometimes with growth rates of -17.
It can be said that in the first half of 2019, the Chinese passenger car market is still not optimistic.
From the perspective of four-dimensional navigation business, 19H1 still achieved a certain growth.
We believe that it is mainly because the majority of Siwei’s navigation customers are mainly mid-to-high-end joint venture brand models.
Telematics business: new 重庆耍耍网 products have been launched, customer coverage has increased, and the telematics business achieved revenue in the first half of the year based on realisation.
29 trillion, a year-on-year growth of 38%, better than expected.
In the first half of the year, new products for the Internet of Vehicles continued to land, and a new generation of AI voice car “Dtreme 8” was released to upgrade the Internet of Vehicles cloud platform.
Commercial vehicle customer coverage increased. In the first half of the year, the company has established close cooperative relationships with eight of the top ten commercial vehicle brands, and the domestic truck incremental market coverage has reached 70%.
Companies in the field of passenger car networking have established cooperation with Audi.
The basis for profitability of the connected car business.
ADAS and driverless business: gradually gain product recognition from major international manufacturers.
In the first half of the year, ADAS and autonomous driving business achieved zero revenue.
480,000 yuan, an increase of 141% in ten years.
We believe that advanced maps and autonomous driving solutions are two important product carriers for smart driving in 4D.
From a product perspective, L3’s advanced map products have gradually taken shape and improved, waiting for the L3’s models from the front-loading plant to gradually mass-produce.
We believe that Siwei is expected to continue to take advantage of its accumulated product expertise, safety, and stability, and gradually gain product recognition from major international manufacturers.
In terms of autonomous driving solutions, the commercial vehicle scene is expected to be restored, and the passenger car field may face more market competition, which will also test the overall design ability of the integrated autonomous driving solution.
We are optimistic about the business situation brought by the unmanned landing, and maintain the “Buy” rating company to form a traditional industrial navigation map, connected car to car chip, high-precision map, and automatic driving solutions.
Maintain the profit forecast. It is expected that the company’s EPS for 2019-2021 will be 0.
32 yuan, corresponding to PE66 / 56/46 times.
We are optimistic about the development potential of the company in the era of intelligent driving and maintain a “Buy” rating.
Risk reminder: the risk of continued growth in domestic passenger car sales, the risk that the application time of fine maps is lower than expected, the risk that the volume of chip products is lower than expected, the risk of reducing holdings, and the risk of goodwill impairment