NavInfo (002405) 2019 Semi-annual Report Performance Review: Multi-point Flowering Revenue Slightly Increased, IOT Business Increased, Slowing Performance
The company released the semi-annual report for 2019, and the company achieved operating income in the first half of the year10.
84 ‰, an increase of 9 in ten years.
43%; net profit attributable to mother is 0.
86 ‰, a decrease of 47 per year.
A brief review of the company’s connected car, advanced assisted driving, autonomous driving, and location big data business has developed smoothly, revenue has achieved rapid growth, the chip business is affected by the independent brand car market, and revenue has broken through.
By business, navigation business revenue 4.
41 ppm, a ten-year increase of 7.
36%, mainly due to the company’s downstream customers Mercedes-Benz, BMW and Toyota sales growth growth, gross profit margin was 94.
98%, a decline of 1 per year.
58pct, mainly due to the increase in the cost of map data; the Internet of Vehicles business achieved revenue3.
29 ppm, an increase of 38 in ten years.
16%, commercial vehicle connected vehicle, dynamic traffic information and other businesses still maintained rapid growth, with a gross profit margin of 49.
42% ten years ago.
58pct, mainly due to the increase in the cost of connected materials for commercial vehicles; the chip business achieved revenue1.
84 trillion, down 34 a year.
44%, mainly due to the substantial increase in sales of self-owned brand cars, with a gross profit margin of 57.
02%, down by 1 every year.
94pct; advanced assisted driving and autonomous driving business achieved revenue of 4831.
440,000 yuan, an increase of 140 in ten years.
83%, mainly due to the growth of ADAS maps and related services; operating revenue from location big data services was 6,925.
99 million yuan, an increase of 80 in ten years.
34%, mainly due to the increase in revenue from new government and enterprise customers.
The company continued to increase R & D investment, and Mapbar twice in the first half of the year.
35 ppm, Zhonghuan Satellite rated 0.
200 million dragged down company performance.
In terms of three fees, the company’s selling expenses decreased by 4.
30%, down by 1 every year.
24pct is mainly due to the fact that the sales and promotion costs of passenger car-to-vehicle networking are no longer counted; the management costs have been reduced by 16.
49%, down by 1 every year.
33pct, of which the daily office and consumables costs have dropped significantly; financial costs are injected -0.
16%, an increase of 1 per year.
34pct, mainly due to the decline in the company’s interest income; R & D expenses / total revenue was 42.
68%, a decrease of 0 per year.
71pct, even if the R & D expenses of passenger car-to-vehicle networking are no longer included, the company is still increasing expenditures on new businesses such as autonomous driving, so R & D expenses / income will not be obvious.
Overall, the company’s expenses during the 2019H1 period were supplemented by 65.
27%, down by 1 every year.
95pct, mainly due to the termination of the supplementary equity method by Mapbar, Mapbar’s expenses are no longer included 上海夜网论坛 in the company’s expenses.The investment income of the company’s associates and joint ventures was repeated several times in the same period last year.
1.2 billion, mainly due to Mapbar supplementation.
Mapbar in the first half of 2019 may be 2.
350,000 yuan, estimated to increase by 1 in the same period last year.
Reference company shareholding ratio from 60.
33% canceled 46.
93%, we estimate that Mapbar’s impact on the company’s net profit in the first half of the year increased by 0 compared with the same period last year.
5.9 billion yuan.
Zhonghuan Satellite’s first half net profit may reach 2069.
920,000 yuan, an increase of 1334 is estimated in the same period last year.
750,000 yuan, with reference to the company’s shareholding ratio of 70 from the same period last year.
98% canceled 47.
88%, the impact on the company’s return to net profit increased by 5.58 million yuan over the same period last year. On the whole, the Internet of Vehicles business has about 0 impact on the company.
Signed a CNS service agreement with BMW, and high-speed growth in the field of connected cars is expected.
The company signed a CNS (Automotive Interconnection System) service agreement with BMW (China). The company will sell in China for 2021-2025 (after the agreement is terminated, it will automatically renew to 2029).The car provides internal vehicle-linked system related services including dynamic traffic information, path planning, electric vehicle path planning, and calculation of remaining mileage of electric vehicles.
The company’s senior management has cooperated with BMW in navigation maps, ADAS maps and advanced maps, and signed a CNS service agreement with BMW to further deepen the cooperation between the two parties in the field of Internet of Vehicles. It is expected that after 2021, it will bring a certain increase in revenue.
We believe that the cooperation with BMW will lead to more projects to be implemented, accelerate the mass production application of the company’s car linkage system solution, and be optimistic about the company’s connected car business development.
Autonomous driving is about to usher in a period of rapid development. The company’s high-precision maps and rapid advances in autonomous driving solutions.
The company currently supports mass production capacity of advanced maps for autonomous driving on highways of L3 and above. In terms of L4 autonomous driving maps for urban ordinary road scenes, the company is conducting actual vehicle test verification and has entered the quasi-volume production stage.
In August 2019, the company signed a high-level map test data purchase agreement with Huawei, marking the official implementation of the company’s autonomous driving cooperation project with Huawei.
We believe that high-precision maps are a necessary configuration for automatic systems above L3.
It is assumed that the minimum high-precision map product is about 800-1000 yuan / set, and the subsequent high-frequency data update service fee is about 100-200 yuan / year. In 2021, high-level autonomous vehicles above L3 level will penetrate and merge.
38%, four-dimensional high-precision map products can still maintain the proportion of traditional maps in the field of about 40% of the market share, then in 2021 the company’s high-precision maps increased revenue to achieve 1.
38 trillion, and is expected to reach 23 by 2025.
43 trillion, compound growth is expected to be about 102.
89%, the five-year incremental income may reach 4.9 billion US dollars, pushing the company’s map business into a complementary long-term.
At the same time, the company’s autonomous driving solution is progressing smoothly. It is reported that the commercialization of the company’s L2 level autonomous driving solution in the commercial vehicle field has entered the real vehicle test and verification phase. The company’s autonomous driving solution has passed Beijing’s autonomous driving road test T3License exam.
Profit forecast and investment rating: The company currently has L3 high-precision map and high-precision positioning service capabilities. In the era of autonomous driving, the company will transform into a business model from selling data to providing services and selling licenses to obtaining continuous service fees.
Through integrated autonomous driving solutions such as high-precision maps, cloud platforms, positioning services, and chips, the company has gradually increased customer stickiness and competitiveness in the era of autonomous driving.
At the same time, we also see that the company fully meets its leadership position in the Chinese market, and at the same time gradually deploys and deploys overseas map service business overseas. We are optimistic about the company’s continuous innovation ability and gradual development. It is expected that the company will return to its mother net in 2019-2021.Profits are 3 respectively.
76 ppm, with a ten-year increase of -26.
65%, each EPS is 0.
23, 0.29 yuan, corresponding to the current expected PE is 84, 66, 51 times respectively. As the core asset of autonomous driving and the core partner of Huawei autonomous driving, we continue to recommend and give a buy rating.
Risks and Tips: Advanced maps have not advanced as expected, passenger car sales growth continues to gradually increase, and the risk of goodwill impairment.