Investment Rating - The report assigns an "Outperform" rating to the company, with a target price range of 67.83 to 75.37 CNY for 2025 [5][3][298]. Core Insights - The company focuses on automotive intelligent driving, with a strong emphasis on sensor and domain controller products, which are expected to drive revenue growth [2][3][268]. - In 2023, the company achieved a revenue of 1.202 billion CNY, representing a year-on-year growth of 11.4%, and a net profit of 114 million CNY, up 8.5% year-on-year [2][3][36]. - The intelligent driving industry is characterized by a long growth trajectory and significant market potential, with the global market for intelligent driving sensors projected to grow from 287.2 billion CNY in 2023 to 509 billion CNY by 2025, at a CAGR of 33% [3][85]. Company Overview - The company, a subsidiary of HORN Group, specializes in automotive intelligent driving perception systems and has established partnerships with numerous well-known domestic and international automotive manufacturers [37][38]. - The main products include in-vehicle camera systems, video driving recorders, ultrasonic radar systems, and domain controllers, providing a comprehensive solution for automotive intelligent driving systems [2][3][37]. Financial Analysis - The company has shown consistent revenue growth, with a CAGR of 12.20% from 2018 to 2023, and is expected to continue this trend with projected revenues of 1.313 billion CNY in 2024, 1.581 billion CNY in 2025, and 1.928 billion CNY in 2026 [4][268]. - The gross margin for the automotive intelligent driving perception system was 22.99% in 2023, with expectations for gradual improvement in the coming years [58][268]. Industry Insights - The intelligent driving sector is witnessing a shift towards domestic suppliers, with local companies like HORN Electric gaining market share due to competitive pricing and rapid response capabilities [3][85]. - The demand for intelligent driving sensors is increasing, with the market for ultrasonic radar systems expected to grow from 8.2 billion CNY in 2023 to 10.8 billion CNY by 2025, at a CAGR of 14% [127][128]. - The market for millimeter-wave radar is also expanding, projected to increase from 48.4 billion CNY in 2023 to 65.7 billion CNY by 2025, at a CAGR of 16% [139][140]. Product Development - The company is actively developing high-performance, high-reliability domain controllers and is expected to launch a cost-effective integrated domain controller in 2024 [215][222]. - The product lineup includes advanced features such as automatic parking systems and high-resolution cameras, which are essential for the next generation of intelligent driving solutions [168][215]. Customer Base - The company has diversified its customer base, transitioning from traditional fuel vehicle manufacturers to include new energy vehicle manufacturers and global clients [228][235]. - Major clients include well-known automotive brands such as BYD, Ideal, and Volkswagen, with a growing share of revenue coming from new energy vehicle projects [228][235]. Research and Development - The company invests heavily in R&D, with a research expense ratio exceeding 10% and a focus on software and algorithm development [73][250]. - As of 2023, the company employed 324 R&D personnel, accounting for 30.65% of its workforce, reflecting its commitment to innovation in the automotive electronics sector [251][250].
豪恩汽电：聚焦汽车智能驾驶的核心企业