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Desai Xiwei (002920) in-depth tracking report

Desai Xiwei (002920) in-depth tracking report

Considering the company’s leading position in the cockpit field, new products in the field of ADAS / Internet of Vehicles are beginning to bring significant performance contributions. As a leading supplier of intelligent connected cars in China, companies are expected to enjoy a certain premium and be awarded according to comparable companies.Target price of 40.

6 yuan, corresponding to 2020/21 60 / 43x PE, upgrade to “Buy” rating.

Based on cockpit products, China’s leading supplier of intelligent connected cars.

The company has been engaged in automotive cockpits and other fields for more than 30 years. Its previous installation business has mainly included customers such as Volkswagen, FAW, GAC, Changan Mazda and more than 60 world-renowned automobile manufacturers.

The basic products are based on cockpit electronics such as in-vehicle infotainment systems, air-conditioning controllers, and driving information display systems. They are gradually innovating and upgrading in the direction of intelligent cockpits. At the same time, they are developing new product lines such as intelligent driving and car networking to lead the era of intelligent networkingSuppliers move forward.

The cockpit intelligent trend is determined, and the basic business supports the company’s growth.

The new human-computer interaction experience has given birth to the smart cockpit market and the company’s cockpit business expansion position. Among them, the main revenue contributed by in-vehicle infotainment systems has 佛山桑拿网 been stable at more than 80%.

The company provided four large-screen products of “3 + 1” for the car and Jiayue ONE aircraft. The smart cockpit products are gradually mass-produced. The smart cockpit business will still be the company’s core revenue source in the future.

Actively deploy ADAS, and gradually mass-produce products such as automatic parking bring new space for the company.

The company started to deploy ADAS in 2016, mainly including automatic parking, T-BOX, 360 surround view, driver monitoring, etc.

Among them, automatic parking has been mass-produced in Geely’s Xingyue and Chery’s Jietu models, making it the first domestically-produced product of this type.

At the same time, Desai Xiwei and Internet companies such as Tencent and Baidu have reached strategic cooperation agreements to continue to build smart driving highlights. It is expected that ADAS is expected to become the company’s new growth highlight.

To grab the high ground of connected cars, it is worth paying attention to the future value-added services.

5G catalyzes the development of connected cars, enabling cars to become a new generation of intelligent terminals.

In 2018, the size of our connected car market was 486 ppm, with a year-on-year growth rate of 16.

57%.

In 2018, the company established the Automotive Networking Division, which cooperates with manufacturers such as NavInfo to help business landing in the form of a combination of software and hardware. The exploration of value-added services for vehicle networking is worthy of attention.

Risk factors: Decrease in car sales; promotion of new products such as ADAS exceeds expectations; competition in traditional products intensifies.

Investment suggestion: Considering that the downstream industry demand has stabilized and rebounded and the company’s existing product penetration continues to overlap with new product contributions, we expect the company’s net profit in 2019-2021 to be 2.

60/3.

71/5.

24 ppm, corresponding to EPS of 0.

47/0.

68/0.

95 yuan.

With the development of automotive intelligence and network connectivity, the company’s performance is expected to reach a large number of points. Considering that the company has a leading position in the cockpit field, new products in the field of ADAS / connected cars are beginning to bring significant performance contributions.As a leading supplier of intelligent connected cars in China, the company expects a certain premium on ownership, with a target price of 40 based on comparable companies.

6 yuan, corresponding to 60 / 43x PE in 2020/21, upgrade to “Buy” rating