经纬恒润：前瞻高强度研发，智驾放量可期

Investment Rating - The report gives a "Buy" rating for Jingwei Hengrun-W, with a target price of 61.2 RMB and a PE ratio of 410.83, 27.22, and 17.29 for 2024-2026 respectively [71][72] Core Views - Jingwei Hengrun, founded in 2003, focuses on three core businesses: electronic products, R&D services and solutions, and high-level intelligent driving solutions. In 2023, the company achieved revenue of 4.678 billion RMB, a year-on-year increase of 16.3%, but net profit attributable to the parent company was -217 million RMB, a year-on-year decrease of 192.17%, mainly due to increased R&D expenses [2] - The company is making forward-looking investments in central computing platforms and regional controllers, with intelligent driving products covering smart sensors, integrated parking and driving, and high-level autonomous driving controllers. The chassis domain controller has been deployed in multiple vehicle models [2] - The company has made breakthroughs with new customers and successfully expanded new businesses. Its automotive electronics products, including body domain controllers, intelligent driving domain controllers, and chassis domain controllers, have been mass-produced and generated revenue. The R&D services and solutions business has delivered EE development and testing projects for clients such as Changan, Zeekr, BYD, and China National Heavy Duty Truck Group, while also expanding to foreign clients like Volvo Asia Pacific, Volkswagen CARIAD, and Stellantis. The high-level intelligent driving solutions business has partnered with Yantai Port and Tangshan Port for the first time. The new AR-HUD product began mass production in the second half of last year, contributing significantly to revenue growth [2] Business Overview - Jingwei Hengrun is a comprehensive solution provider in the automotive electronics field, focusing on providing electronic products, R&D services, and high-level intelligent driving solutions for the automotive and unmanned transportation sectors. The company adheres to a strategy of "professional focus," "technological leadership," and "platform development," aiming to become a world-class integrated electronic system technology service provider, a full-stack intelligent connected vehicle solution provider, and a leader in high-level intelligent driving MaaS solutions [3] - The company has a clear division of labor among its subsidiaries, with businesses mainly concentrated in high-end equipment electronics, R&D services and solutions, automotive electronics R&D and production, and overseas business and market expansion [8] Financial Performance - From 2018 to 2023, the company's business achieved rapid growth, with a CAGR of 25%. The revenue from electronic products, R&D services and solutions, and high-level intelligent driving solutions reached 3.419 billion RMB, 1.233 billion RMB, and 12 million RMB respectively, with year-on-year growth rates of 11%, 32%, and 262%. Since 2021, the proportion of R&D services and solutions has increased, reaching 26% in 2023 [9][10] Intelligent Driving Business - The company has a product matrix covering L2, L2+, and L2++ autonomous driving levels. Its L2 products include the Forward Active Safety Camera (FAS-Cam), while L2+ products include the ADCU domain controller based on EQ6L+TDA4+TC397, which supports advanced driving assistance functions such as automatic parking and highway NOP. The L2++ product is based on Mobileye's SV52 platform, which can achieve L2.9 level autonomous driving in urban environments [19][20] - The company's L2+ high-level intelligent driving business focuses on the L2.5 product, which integrates 6 cameras, 5 millimeter-wave radars, and 12 ultrasonic radars, enabling functions such as automatic parking, highway NOP, and urban memory driving [21] - The company's L2++/L3 high-level intelligent driving business is centered on the L2.9 product, which uses Mobileye's SV52 platform with 7 8-megapixel cameras, 4 2-megapixel surround-view parking cameras, 1 front millimeter-wave radar, and 12 ultrasonic radars, enabling L2.9 autonomous driving in urban scenarios [36] Body and Comfort Domain - The company's body and comfort domain products include anti-pinch controllers, body control modules, smart cabin sensing systems, keyless entry and start systems, body domain controllers, and adaptive front lighting system controllers. These products have been mass-produced and deployed in vehicles from clients such as FAW Group, Geely, and Great Wall Motors [44][45][47] - The company has made significant progress in the development of body domain controllers, with a cumulative investment of 174 million RMB by 2023. The project integrates functions such as interior and exterior lighting, wipers, smart entry and start, seats, electric doors, windows, and OTA, and is expected to achieve MCU-side AB flashing and MPU-side intelligent diagnosis functions [49] Chassis and Intelligent Networking - The company's chassis control products include electric power steering controllers, electronic parking brake systems, and chassis domain controllers. These products have been mass-produced and deployed in vehicles from clients such as Changan, Chery, and NIO [57][59] - In the intelligent networking field, the company provides remote communication controllers (T-Box) and gateway products. The T-Box product line includes Entry, Standard, and Premium series, while the gateway products cover CAN, LIN, Flexray, and Ethernet networks, meeting the needs of different OEMs [54][56] High-Level Intelligent Driving Solutions - The company's high-level intelligent driving solutions cover multiple fields, including "vehicle-road-network-cloud-map" and operations. The core product is the Heavy Autonomous Vehicle (HAV), which integrates the company's long-accumulated technologies and mature products, including vehicle electronic and electrical architecture, intelligent networking controller components, embedded basic software, autonomous driving algorithms, chassis control algorithms, and battery management algorithms [69] Profit Forecast - The company is expected to achieve revenue of 5.434 billion RMB, 7.099 billion RMB, and 8.104 billion RMB in 2024-2026, with net profit attributable to the parent company of 17 million RMB, 260 million RMB, and 409 million RMB respectively. The EPS is expected to be 0.14 RMB, 2.17 RMB, and 3.41 RMB for the same period [71][72]