Guangfa Securities released a research report "Intelligent Networking and Autonomous Driving Entering an Accelerating Period" on December 2, 2020. The
research report pointed out that since the beginning of this year, the penetration rate of new cars with ADAS (Advanced Autonomous Driving Assistance System) and smart cockpit has been increasing. In terms of
ADAS, the L1 and L2 loading rates have steadily increased, from 20.1% and 8.9% at the beginning of the year to 22.4% and 12.5% at the end of the third quarter. The trend is good and the future space is still large;
smart cockpit field, despite the central control The penetration rate of multimedia and voice is relatively high, but digital meters, streaming media rearview mirrors, HUD and other functions are still in the early stage of accelerated penetration. Similarly, there is still much room for improvement in the future.
· The intelligent, networking, and electrification trend of the automotive industry is pushing the automotive electronic and electrical architecture from a decentralized computer system (ie, control unit) to a more centralized and networked electronic architecture.
Under the brand-new architecture, the core components of smart cars include chips, various sensors, software and hardware. The factors contributing to the rapid increase in ADAS and smart cockpit penetration rates can be summarized into two aspects:
1. From the supply side, the prices of sensors such as on-board cameras and millimeter wave radars have steadily declined in recent years;
2, from the demand side, according to the China Automobile Dealers Association Data from the 2019 China Auto Consumption Trend Report shows that consumers have a high degree of demand for ADAS functional configuration, which is highly attractive in the purchase decision process.
· The rapid rise of new energy vehicles has formed a catfish effect on the traditional car market, and traditional car dealers have begun to exert their strength. It is expected that with relevant technological breakthroughs, new forces and traditional car companies catching up with each other, and various products are rapidly landing, the penetration rate of ADAS and smart cockpit products will increase rapidly.
1. The penetration rate of ADAS and smart cockpits of new energy vehicles is higher than that of traditional fuel vehicles. The "three powers" technology of new energy vehicles makes it easier to achieve autonomous driving, and new energy vehicle manufacturers are more capable and willing to improve the level of intelligence of vehicles.
2. The proportion of my country's new energy vehicle sales continues to increase. As of October 2020, the three manufacturers of Weilai, Ideal, and Xiaopeng have delivered a total of 70,399 units this year, accounting for 0.2% of China's total passenger car sales at the beginning of the year, rising to 0.46%. The stock price trend of related companies is significantly better than that of traditional auto companies.
3. Traditional car companies still have strong competitiveness after they truly manufacture electric vehicles. Volkswagen’s first all-electric model ID.3, two months after its launch, quickly achieved a monthly sales of over 10,000 in October, winning the position of European pure-electric sales champion, and Tesla’s Model 3 sales fell directly. Top ten.
·Investment advice is to choose Zhongke Chuangda, which has obvious competitive advantages and sustained high growth in the smart car business; other targets that can be focused include Desay SV, Datong Technology, and NavInfo.
1. Zhongke Chuangda
around 2013, the company entered the intelligent vehicle software and Internet of Things business, and quickly strengthened through mergers and acquisitions.
Revenue from this business in 2019 was 481 million, a year-on-year increase of 72%. The CAGR (Compound Annual Growth Rate) of revenue in the past three years was about 119%, and revenue accounted for 26%. In the first three quarters of 2020, the business revenue was approximately 480 million yuan, a year-on-year increase of approximately 62%.
Intelligent vehicle software business. Through successful mergers and acquisitions in 2017, the company has established a smart car business ecosystem: combining the company's smart terminal operating system technology + Righware Kanzi 3D development technology + the company's smart vision technology to form a complete smart cockpit ecological platform. According to the latest information on the company's official website, the company has now launched an intelligent cockpit 4.0 solution.
1. Intelligent terminal operating system technology: Based on its own original business area, namely Linux/Android bottom software development, this business mainly constitutes the cornerstone of smart cockpit products, providing a basic operating environment for upper-level applications;
2, car Machine UI design. Through the acquisition of Rightware K, the world's top automotive user interface software technology and service provideranzi (provides an efficient and flexible UI design method for automobile manufacturers, first-tier manufacturers and design studios, which can meet the needs of various digital dashboards, infotainment systems and head-up displays (HUD) and other equipment), beautifully produced UI interface, 3D rendering car model, and vehicle-related animation effects. Provide Kanzi for Android, Kanzi Connect and other solutions/functions.
3. Intelligent vision technology: Provides a surround view algorithm that integrates MM Solution and its own original vision technology, which can achieve 360-degree panoramic views without dead ends, ghosts, and chromatic aberrations, restore the real scene to the greatest extent, and support the display of 3D and 2D scenes. Numerous solutions including 360 surround view and DMS are becoming an important part of vehicle software.
Smart cockpit business layout
In addition to smart cockpit solutions, the company is scheduled to increase by 1.7 billion this year, and part of the funds will be invested in autonomous driving projects.
According to the company's announcement, the company plans to develop specific products in the autonomous driving domain with the blue-marked module in the figure below. It can be seen that, actually in the autonomous driving domain, the company continued its previous layout in the cockpit domain, that is, platform-based development, rather than focusing on a certain autonomous driving assistance function. The product value of
in the autonomous driving domain is expected to increase with the richness of the autonomous driving assistance functions running on it.
Autonomous Driving Domain Product Layout (customized projects to be put into operation this year)
As of the first half of 2020, the company has more than 100 world-renowned customers, including more than 40 automakers, including traditional auto giants such as Volkswagen, Mercedes-Benz, Toyota, etc., also include new car-building forces that have emerged in recent years, including Ideal, Weilai, Xiaopeng, and Weimar.
2. Desay SV
has focused on automotive electronics for more than 30 years and has become a leading domestic manufacturer. At present, the company has formed three major business groups:
intelligent cockpit (including in-vehicle infotainment system, driving information display system, display terminal, body information and control system, etc.); intelligent driving (such as 360-degree HD surround view system and T- Box products); network-linked services (such as vehicle networking platforms of various manufacturers, vehicle OTA, etc.)
Since 2020, although the domestic passenger car market is still weak, the company's performance has continued to pick up, especially on the profit side. In the first three quarters of 2020, the company achieved revenue of 4.3 billion, a year-on-year increase of 21.2%, and net profit attributable to parent company was 320 million, a year-on-year increase of 123%.
Smart Cockpit:
disclosed that in the first half of 2020, the company’s new smart cockpit products (such as multi-screen interactive cockpits, high-definition large-screen infotainment systems, full LCD instruments, display modules and system products) will be used by many core customers. Supporting the supply of many models has driven the recovery of the first batch of new product development benefits.
Intelligent driving and networked services:
In the first half of 2020, the company's many intelligent driving products, such as fully automatic parking systems, 360-degree surround view systems, are also supplied in many models of core customers. Z1z
's L3-level autonomous driving domain controller product-IPU03 is officially mass-produced, supporting the supply of Xiaopeng Motors P7 models, and actively promoting it to more customers; the network service division also assists the FAW-Volkswagen Jetta brand's first Internet of Vehicles OTA upgrade.
Since the second half of the year, the company has made another breakthrough in the field of intelligent driving. For example, it has signed a strategic cooperation agreement with Ideal and Nvidia. The company provides an autonomous driving domain controller for Ideal Car based on Nvidia's Orin chip.
Currently, the company's customers are mainly domestic automakers with independent brands, European and American automakers, and Japanese automakers. Domestic self-owned brand automakers mainly include GAC Passenger Cars, Geely Automobile, Great Wall Motors, SAIC, Chery Automobile, Changan Automobile, BYD, etc.; European and American automakers mainly include FAW-Volkswagen, SAIC Volkswagen, etc.; Japanese customers mainly include Japan's Mazda and Changan Mazda, FAW Mazda, GAC Toyota, FAW Toyota, Lexus, etc. The continuous penetration of new customers and increased cooperation with old customers are expected to promote the continued growth of the company's performance.
3. NavInfo
started with electronic navigation maps, and gradually expanded its business to advanced assisted driving and autonomous driving, chip business, car networking business and location big databusiness.
In 2017, the company clearly put forward the strategic vision of "smart car brain", centered on high-precision maps, high-precision positioning, and car-level chips used in ADAS and autonomous driving. It is based on data, algorithms and computing power. The comprehensive solution of "data + cloud + AI + chip + software and hardware integration" for the era of autonomous driving will build the company's future competitive advantage and industry leading position in the field of autonomous driving.
Since 2020, despite the poor auto market, various businesses have made positive progress. The company's first-generation smart cockpit chip won an order from Desay SV, and was recognized by other Tire1 and system design companies. Many projects have entered the design in stage; the second-generation car networking chip, the first-generation MCU body control chip, The TPMS tire pressure monitoring chip began mass production and shipment; the engineering samples of the second-generation MCU were successfully verified, and the second-generation AMP and TPMS chips were taped out.
On November 30, 2020, the company’s application for non-public issuance of shares was approved by the China Securities Regulatory Commission. It plans to raise 4 billion yuan to invest in intelligent networked car chip research and development projects, autonomous driving map updates and application development projects, and autonomous driving exclusive cloud platform projects .
continues to increase its smart car-related business, which not only reflects the company's positive expectations for the future development of the industry, but also reflects the management's firm confidence in the company's future development in the smart car industry.
