NavInfo (002405): Four large orders in a month progress rapidly

Event: The company announced on the evening of September 22 that it signed a TLP (Telematics LocationPlatform) framework agreement with BMW Motors. The company will integrate, analyze and process the TLP (Telematics Location Platform) platform from its sales in China in 2019.Location-related data obtained by the BMW Group’s brand cars, which will be mass-produced and listed in 2024.

Opinion: The cooperation with BMW continues to deepen and create an industry benchmark case.

The company has previously cooperated with BMW in navigation maps, ADAS maps, high-precision maps, and CNS (Automotive Interconnection System) service agreements. This time, the service agreement with BMW has continued to deepen the cooperation in the field of intelligent networking.

As the world’s first premium car manufacturer for 15 consecutive years, BMW’s industry leadership is unquestionable.

The company cooperates with BMW to create benchmark cases, and gradually overcome the influence of strong potential customers to drive more projects to land, which is conducive to the continuous improvement of profitability and operating performance.

Business upgrade across the board.

At the Antique NavInfo 2019 New User Conference on September 17, the company showed the Group’s latest progress in navigation maps, autonomous driving, and connected car lines, and its business was upgraded across the board.

1) Connected passenger cars: Athena OS 2 is officially released.

0, will establish a safe, intelligent and open new-generation vehicle-mounted ecosystem, through continuous self-learning and evolution, to provide users with a more intelligent and safe driving space; 2) Commercial vehicle networking: officially released the company’s strategic goals:Create a “smart brain” and release and display multiple products.

The heavyweight products include mass-produced commercial vehicle intelligent driving control system PCC (predictive cruise) with fuel-saving characteristics. The data of slope, curvature, heading and other data are extracted from the ADAS map data, combined with continuously optimized fuel-saving algorithms, Car driving decisions can achieve an average fuel economy of 6-10%; 3) High-precision positioning: sign a cooperation agreement with Hexagon to jointly build a ground-based + satellite-based integrated positioning solution, accompanied by Beidou satellite navigationThe system will complete global networking in 2020 to jointly develop global business; 4) Autonomous driving solution: recently won the Beijing Autonomous Driving T3 Road Test License (also the first location service provider to obtain this license), markingThe overall technical solution has reached the first echelon level in China; 5) Advanced map: FastMap3.

0 On the launch of the map production platform, AI significantly improved big data mining, automatic identification and mapping, and automatic editing efficiency and accuracy, allowing the platform to release map 南京夜网论坛 updates on an hourly basis.

At the same time, high-precision maps have covered 300,000 kilometers of highway areas and 3,000 kilometers in the country.

The company’s bicycle value growth space is broad.

Faced with the wave of industrialization of automobiles and networked industries, the company’s layout has extended from “maps” to “cloud computing”, “autonomous driving decision algorithms”, “smart chips”, “location services” and other fields.

In addition to the increase in the value of bicycles brought by upgrading from traditional navigation maps to high-precision maps, the company’s value-added space for bicycles in the areas of connected cars and autonomous driving solutions is also worthy of recognition.

Investment suggestion: The company has successively won multiple heavyweight orders in the past month, which fully reflects the cascade and strength of 四川耍耍网 industry leaders.

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: The development of innovative business is worse than expected, and the intensified competition in the industry leads to a reduction in gross profit margin.