Desai Xiwei (002920) Annual Report 2018 Review: Deep Cultivation of Electronic Intelligent Driving Assistance Products for Automotive Cockpits

Desai Xiwei (002920) Annual Report 2018 Review: Deep Cultivation of Electronic Intelligent Driving Assistance Products for Automotive Cockpits

Company dynamics Recently, the company released its 2018 annual report, achieving a total operating income of 54.

09 billion, down 10 every year.

01%, achieving net profit attributable to mother 4.

1.6 billion, down 32 each year.


  Matter comments Performance expectations are under pressure, and the increase in research and development has dragged down the expense ratio during the period. The company ‘s performance has declined due to changes in sales of some supporting models. The only vehicle entertainment system in all types of products has achieved a small increase, resulting in revenue of 34.

33 ppm, an increase of 3.

88%, vehicle information systems, air-conditioning controllers, driving information display systems, EMS and other revenues declined to varying degrees.

In 18 years, the company’s gross profit margin was under pressure, and the gross profit margins of in-vehicle information systems and in-vehicle entertainment systems decreased by 17 as compared with the previous year.

17pct and 0.

61pct, with an overall gross profit margin of 23.

99%, a decrease of 1 from 17 years.

79 points.

In terms of period expenses, the company’s R & D investment increased rapidly, and the R & D expense ratio tripled.

72pct, leading to an increase in the expense ratio by 2 over the long term.

46 points.

  The market has developed smoothly, and new products such as smart cockpits have successively harvested orders. In 18 years, the company has obtained new project orders with an annualized value of more than 7 billion U.S. dollars. The output of new products and the acquisition of orders have increased rapidly.

In terms of smart cockpits, the company has won new orders for smart cockpits for cars, homes, Changan Automobile, and Skyline Motors. It is expected to be mass-produced in 19 years. In terms of display modules and systems, the company has received FAW-Volkswagen, SAIC Volkswagen, Geely and other customers.New project orders; in terms of configurable meters and central control display systems, the company has obtained new project orders from customers such as BYD, Geely, Great Wall, Chery, GAC passenger cars and other customers.

The company successfully explored new customers such as Changan and GAC Toyota, and actively explored international business. It has obtained new project orders for Volkswagen Group’s global models.

  Intelligent driving assistance products are gradually mass-produced, and active deployment of connected car business companies are in-depth deployment of cutting-edge technologies such as intelligent driving assistance and connected cars. Among the intelligent driving assistance products are 360-degree high-definition surround view systems, 武汉夜生活网 automatic parking systems, driver behavior monitoring and identity recognition systems., T-box products have been mass-produced, 24G millimeter-wave radar has received project orders and exchanged for mass production in 2019, 77G millimeter-wave radar is expected to reach mass production in 2019; jointly developed with NVIDIA and Xiaopeng AutomobileThe L3 intelligent driving system is planned for mass production in 2020. In 18, the company released a solution based on Qualcomm 9150 C-V2X chipset, and acquired German antenna technology company ATBB.

In terms of connected cars, the company established the Connected Car Division in 2018 to cooperate with long-term companies such as Baidu and Tencent, and received new project orders from FAW-Volkswagen.

  The investment proposal estimates that the company’s net profit attributable to shareholders of the parent company from 2019 to 2021 will be 4 respectively.

4.8 billion yuan, 4.

7.8 billion, 5.

0.6 billion, the corresponding EPS is 0.

81 yuan, 0.

87 yuan, 0.

92 yuan, the corresponding PE is 37 times, 35 times, 33 times, the first rating, given a “cautious increase” rating.

  Risks indicate that lower-than-expected car sales of downstream customers are expected; new business advances are not as expected.