Streamax(002970) 浙商证券·2024-10-15 08:03Investment Rating - Buy (首次) [7] Core Views - The company is a leader in commercial vehicle monitoring and information technology, with sustained high growth in performance [2] - The industry is in a period of penetration, driven by policy and technological advancements [3] - The company has a competitive advantage in technology, cost, and customization capabilities [4] - The company is expanding globally, with significant overseas growth [5] - ROE is gradually recovering and has room for further improvement [6] Industry Overview - The industry is driven by strong demand for safety and efficiency, with policies and regulations accelerating penetration [3] - Technological upgrades are increasing product value and market size [3] - The penetration rate of third-generation products is still low, with significant growth potential in North America and Europe [3] - The global commercial vehicle market is recovering, with a projected 5% growth from 2023 to 2025 [40] Company Competitive Advantages - The company has a first-mover advantage in technology, with a large user base that supports algorithm and software upgrades [4] - The company benefits from China's manufacturing cost advantages, offering more cost-effective products compared to Western competitors [4] - The company has strong customization capabilities, supported by a six-product family and a three-tier R&D architecture [4] Global Expansion Strategy - Overseas revenue has been increasing for seven consecutive years, accounting for 52.2% of total revenue in 2024H1 [5] - The company has adopted a localized marketing strategy and established overseas manufacturing centers [5] - The company is well-positioned to benefit from the increasing penetration rate in overseas markets, particularly in North America and Europe [5] Financial Analysis - ROE is recovering but still has room to improve, driven by higher net profit margins and asset turnover [6] - The company's revenue and net profit have shown strong growth, with 2024H1 revenue and net profit increasing by 48.83% and 104.90% respectively [2] - The company's gross margin is expected to improve as overseas business, which has higher margins, continues to grow [63] Product and Market Strategy - The company offers a comprehensive product portfolio, including intelligent cameras, displays, and central computing units, catering to various commercial vehicle segments [20] - The company is expanding into pre-installed markets, with pre-installed business revenue increasing from 0.75% in 2020 to 3.11% in 2024H1 [23] - The company is focusing on high-value markets overseas, particularly in North America and Europe, where penetration rates for third-generation products are still low [5] R&D and Innovation - The company has a strong R&D focus, with R&D expenses accounting for 14.50% of revenue in 2023 [47] - The company has developed a "1+3" R&D platform, which improves R&D efficiency and reduces costs [49] - The company's R&D efforts are supported by a large user base, which provides valuable data for algorithm and software upgrades [4] Future Outlook - The company is expected to benefit from the increasing penetration of commercial vehicle monitoring and information technology products globally [67] - Overseas business is expected to drive future growth, with the company planning to establish additional manufacturing centers abroad [55] - The company's ROE is expected to continue improving, driven by higher net profit margins and asset turnover [6]