NavInfo (002405): Short-term performance pressure does not change long-term momentum

NavInfo (002405): Short-term performance pressure does not change long-term momentum

Event: The company recently announced that the first three quarters of 2019 are expected to achieve a net profit of 20 million to 30 million yuan, a year-on-year decrease of 86.

31% -90.


Opinion: Short-term performance is under pressure.

The reasons for the decline in the company’s performance were: 1) The company’s sales revenue generally remained stable.

However, due to the decline in sales of passenger cars and industry competition, the revenue of map compilation and chip business with higher profit margins declined; 2) the revenue of commercial vehicle connected business increased significantly, but its profit margin declined;The expansion of Mapbar Technology (Limited), the four-dimensional intelligent linkage) has expanded investment income and also had a negative impact on profits.

With reference to the 2019 Interim Report data, Siwei Zhilian twice in the first half of the year.

3.5 billion, reducing the investment of listed companies1.


In our judgment, the quarterly expansion of the third quarter report is mainly due to the decrease in investment caused by the expansion and expansion of 4D Zhilian.

Ample orders in hand set a bottom for interim results.

1) Core map business.

According to reports from Wall Street, Tesla’s Shanghai plant is about to start production, and the annual output of the project is planned to be 500,000 electric vehicles.

The commissioning of the Shanghai plant will lead to an increase in Tesla deliveries and a significant reduction in sales prices.

Considering the cost-effective advantages of the domestic version of Tesla, we judge that it is very likely to become an explosive model in the domestic auto market.

The company will benefit from Tesla’s exclusive supplier of maps.

In addition, the company’s previous announcement of winning Honda’s long-term core map orders will also bring a small incremental market; 2) Connected vehicle business: The company’s roads have successively won BMW CNS (Automotive Interconnect System) service agreements, and TLP (Interconnected Vehicle Location)) Data platform) service agreement, Honda ‘s real-time traffic information data, and the newly-locked mid- and long-term contracts are expected to help the growth of connected car business.

3) Positional big data business: The company’s positional big data business grew by over 80% annually in the first half of the year, showing outstanding performance, with ample orders in hand, and is expected to maintain a high growth trend.

The autonomous driving business is poised to open up, opening up space for long-term growth.

1) Map production & update capabilities are further enhanced.

The company announced earlier that the new-generation map online production and release platform 淡水桑拿网 FastMap3 independently developed by itself.

0 officially launched.

On FastMap1.

0 and FastMap2.

0 based on 3.

0 platform improves the big data mining through online, integrated and intelligent production methods, automatic identification and mapping, automatic editing efficiency and accuracy, and the implementation of maps using image recognition, deep learning and automatic mapping AI technologyThe hourly update is released, which breaks the technical foundation for the company’s real-time map of driving and the Internet of Vehicles business; 2) The autonomous driving solution has reached the first echelon level in China.

According to the company’s official Weibo report, after four years of product polishing, the company recently successfully won the Beijing Autonomous Driving T3 road test license (also the first location service provider to obtain this license), marking that the overall technical solution has reached the domestic levelOne echelon level; 3) Strategic cooperation with Huawei is smooth.

In August 2019, the company signed a high-level map test data purchase agreement with Huawei, marking the official launch of a cooperation project with Huawei on autonomous driving.

Investment suggestion: The company has ample orders in hand, laying a foundation for interim results.

At the same time, autonomous driving is the company’s long-term most important growth pole. Its business is progressing rapidly and is poised to open up space for long-term growth.

We are very optimistic about the company’s strategic prospects for building a “smart car brain” and its industry competitiveness. It is expected that the company’s EPS in 2019 and 2020 will be zero.

22, 0.

32 yuan, maintain Buy-A rating, 12-month target price of 22 yuan.

Risk reminder: Innovative business development is worse than expected, and industry competition intensifies leading to lower gross profit margin