Desai Xiwei (002920) Annual Report Review: Intelligent Driving Products Expected to Become New Profit Growth Points
Core view performance was lower than expected.
Operating income in 2018 was 54.
09 million yuan, 10-year average of 10.
0%, net profit attributable to mother 4.
16 ppm, an average of 32 in ten years.
5%, net of non-attributed net profit3.
580,000 yuan, an average of 41 for ten years.
8%, EPS is 0.
The company intends to distribute cash dividends for every 10 shares to all shareholders2.
0 yuan (including tax).
The increase in gross profit margin and the increase in R & D expenses have led to an increase in net profit margin.
Gross profit margin in 2018 was 24.
0%, down by 1 every year.
8 levels, of which the gross margin of the in-vehicle information system is 33.
27%, a decline of 2 per year.
The gross profit margin of 17 single-vehicle entertainment systems is 23.
72%, a decline of 0 per year.
Company R & D expenses 5.
24 ppm, an increase of 25 in ten years.
2%, resulting in a management expense ratio (including R & D expenses) of 12.
2%, an annual increase of 3.
The net interest rate in 2018 was 7.
7% twice a year 2.
6 fines, gross margin budget and management expense rate increase are preliminary.
Net cash flow from operating activities was 7.
36 ppm, an increase of 13 in ten years.
9%, ending inventory is 6.
82 ppm, a reduction of 25 per year.
The smart cockpit business continued to develop.
The company actively expands new business, obtains annual project orders of more than 7 billion U.S. dollars, and the output of new products and orders are rapidly increasing.
In 2018, it won orders for smart cockpit projects 佛山桑拿网 for cars and homes, Changan Automobile and Skyline Automobile, and mass production is expected to begin in 2019.
Display modules and systems with leading optical performance, products such as configurable dashboards and central control display systems have also been recognized by many customers. It is expected that more orders will be obtained for the smart cockpit business in the future.
Intelligent driving assistance products have been mass-produced in stages.
The company’s 360-degree high-definition surround view system, fully automatic parking system, driver behavior monitoring and identification system, T-box and other products have achieved mass production; 24G millimeter-wave radar has been ordered to replace mass production in 2019; 77G millimeter-wave radarMass production is expected in 2019.
The company has jointly developed the L3 intelligent driving system with NVIDIA and Xiaopeng Automobile, and plans to mass-produce it in 2020.
The company acquires German advanced antenna company ATBB to accelerate the landing of intelligent driving products.
Smart driving business is expected to become a new profit growth point.
Financial Forecast and Investment Suggestions: As the revenue and gross profit margin exceed expectations, EPS is expected to be 0 in 2019-2021.
36 yuan (originally 1.
27 yuan). Comparable companies are automotive electronics and parts related companies. Comparable companies have an average PE evaluation of 42 times in 19 years, giving an estimate of 42 times in 19 years, with a target price of 36.
96 yuan, maintain BUY rating.
Risk reminder: Vehicle entertainment system supporting volume is lower than expected, vehicle information system and driving information system supporting volume is lower than expected, passenger car industry demand is lower than expected