Desay SV(002920) 华创证券·2024-09-19 22:37Investment Rating - Strong Buy (Maintained) with a target price of 109.5 RMB [1] Core Views - The company is a leader in automotive electronics, strategically focusing on smart cockpit, smart driving, and connected services, benefiting from the rapid growth of intelligent vehicle products driven by the increasing penetration of new energy vehicles [1] - The smart cockpit market is evolving into a "third living space," with significant growth potential in the cockpit domain controller market, expected to reach 13.5 billion RMB by 2026 [1][8] - The smart driving market is advancing towards higher levels of autonomy, with L3 autonomous driving expected to be officially implemented after pilot programs, driving the demand for high-performance domain controllers [1][8] - The company's international expansion and high-performance products, developed in collaboration with NVIDIA, have led to significant growth in smart driving business, with new project orders exceeding 8 billion RMB in 2023 [1] Financial Projections - Revenue for 2024-2026 is projected to be 28.913 billion RMB, 36.615 billion RMB, and 45.116 billion RMB, with year-on-year growth rates of 32.0%, 26.6%, and 23.2% respectively [1][2] - Net profit attributable to the parent company for 2024-2026 is expected to be 2.026 billion RMB, 2.621 billion RMB, and 3.309 billion RMB, with year-on-year growth rates of 31.0%, 29.4%, and 26.3% respectively [1][2] Industry Analysis Smart Cockpit - The smart cockpit market is transitioning towards a "third living space," with the cockpit domain controller being the core of development, expected to reach a market size of 13.5 billion RMB by 2026 [1][8] - The penetration rate of cockpit domain controllers in the 10-200k RMB vehicle segment is around 20%, indicating significant growth potential [1][8] - The company is a leading domestic supplier of cockpit domain controllers, with a market share of 17.3% in 2023 [1][52] Smart Driving - The smart driving market is advancing towards higher levels of autonomy, with L3 autonomous driving expected to be officially implemented after pilot programs, driving the demand for high-performance domain controllers [1][8] - The penetration rate of NOA (Navigate on Autopilot) in the Chinese market was 5.21% in Q1 2024, with further growth expected as L2+ advanced driver assistance systems continue to be deployed [1][8] - The smart driving domain controller market is expected to reach 91.5 billion RMB by 2027, driven by the increasing demand for computing power to support more complex driving scenarios [1][8] Company Strategy - The company is focusing on smart cockpit and smart driving businesses, with smart driving business accounting for 20.47% of revenue in 2023, a year-on-year increase of 74.43% [1] - The company has developed high-performance products IPU03 and IPU04 in collaboration with NVIDIA, securing new project orders from over ten automakers [1] - The company is expanding its international presence, with breakthroughs in key markets such as Europe, North America, Japan, and Southeast Asia, securing new project orders from clients like Audi, Tata Motors, Volkswagen, and Suzuki [1] Valuation - The company is valued at 30x PE for 2024, with a target price of 109.5 RMB, based on its leading position in the industry, capacity adjustments, and deepening internationalization [1][10]