NavInfo (002405): Signed Mitsubishi Electric’s 2021-2026 map purchase contract to highlight the true nature of the map’s leader
Recent situation of the company On the evening of September 2, the company issued an announcement and signed a purchase contract for Mitsubishi Electric in the areas of electronic navigation maps, real-time traffic information, and license plate restrictions.
The Mitsubishi Electric’s in-vehicle terminal products will be used in the TSU3 equipped for mass production and marketing in 2021-2026 sold in China.
Models such as GAC Honda and Dongfeng Honda on platform 0.
After the contract expires, NavInfo will continue to provide map maintenance services for Mitsubishi Electric for 5 years.
Comment on the market share again, highlighting the true nature of charter leaders.
Mitsubishi Electric is a newly signed customer of the company. This time, it successfully won a five-year purchase contract. We believe this signifies that the company’s product classification has been recognized by more customers, and its market share has further expanded.
According to Analysy Data’s February 2018 quarterly data, NavInfo’s new market share (by load) reached 38.
55%, if calculated in terms of amount, we expect this proportion to be even higher.
We expect to continue to strengthen the company’s product advantages (Siwei Tuxin invests nearly 30% of its R & D investment every year in the field of traditional navigation maps, and it has reached 11 in 2018.
70,000 yuan, an increase of 18 in the first half of 2019.
59%), the living space of small and medium graphic quotients will be further squeezed.
Conservative calculations will increase revenue by at least 100 million in the medium term.
According to Marklines data, in 2018 Honda and Acura sold 147 ideas in China.
We conservatively estimate the loading capacity of 1 million vehicles per year. This purchase order is expected to contribute 200 million yuan to the company in the medium term (2021-2026)?
300 million incremental income.
In addition, we believe that Mitsubishi Electric is expected to become the company’s mid-to-long-term strategic customer, and the possibility of further and further cooperation is not ruled out in the later stage.
For example, 淡水桑拿网 in 2017, Mitsubishi Electric started cooperation with ADAS in the field to explore autonomous driving together. If Mitsubishi Electric seeks cooperation in the Chinese market in the future, we believe that NavInfo will have a first-mover advantage.
The top graphic dealers are fully deploying autonomous driving and connected cars.
Starting from a leading domestic map manufacturer, NavInfo has gradually expanded its business to the conversion of various industrial chains and completed the comprehensive layout of the autonomous driving and connected car industries. We believe that the company is expected to fully share the industry growth dividend.
The company also joined hands with Huawei to create a “Huawei + Four-Dimensional” smart car technology overall solution.
Huawei has deep accumulation in the 5G field and 天津夜网 aims to become a tier 1 supplier in the era of smart cars. By leveraging partners, it can help NavInfo to seize the opportunity.
The estimation proposal considers that the contract will perform in the medium term (2021), and we temporarily maintain the company’s profit forecast and estimates unchanged.
Maintain target price of 17 yuan and outperform industry rating. Based on 2019 segment total valuation method, corresponding to 68 times 2019 price-earnings ratio.
The company is currently trading at 65.
1x 2019/20 price-earnings ratio, our target price corresponds to 5% upside.
Risky new product investment exceeded expectations; auto market sales were sluggish.