Wanma Tech(300698) 光大证券·2024-05-30 08:02Investment Rating - The report initiates coverage on Wanma Technology with a "Buy" rating, citing its potential in the autonomous driving and vehicle networking sectors [1][13] Core Views - Wanma Technology has successfully transitioned into a vehicle networking and ecosystem operator, with its vehicle networking business becoming a key growth driver, contributing 34% to total revenue in 2023 with a high gross margin of 66.51% [1][23] - The company's vehicle networking business is expected to benefit from the rapid growth of the autonomous driving market, with new products like the autonomous driving data closed-loop platform toolchain expected to drive future growth [1][13] - Wanma Technology's subsidiary, Youka Technology, is a leading third-party provider of vehicle networking products and operational services, having served over 8.1 million vehicles by September 2023 [1][61] Industry Overview - The vehicle networking market in China is expanding rapidly, with a penetration rate of 78.31% in 2023, and is expected to reach a market size of 543 billion yuan by 2024 [1][56] - The autonomous driving sector is driving a surge in computing power demand, with major players like Xiaopeng, Huawei, and NIO planning to implement city navigation-assisted driving functions [1][61] Company Strengths - Wanma Technology has established a strong foothold in the vehicle networking market with its CMP platform, which includes key technologies such as distributed fusion billing engines, automated rule engines, and eUICC technology [1][90] - The company has a diverse customer base, including major automakers like Geely, SAIC Volkswagen, and NIO, and has expanded its market reach by establishing a subsidiary in Hong Kong to explore overseas opportunities [1][92][94] Financial Projections - The report forecasts Wanma Technology's net profit to grow from 81 million yuan in 2024 to 162 million yuan in 2026, with EPS increasing from 0.60 yuan to 1.21 yuan over the same period [1][13] - The vehicle networking business is expected to maintain a high growth rate, with revenue projected to grow at a CAGR of 35% from 2024 to 2026, driven by new product launches and market expansion [1][126] Valuation - The report values Wanma Technology at a 2024 PE of 58x, higher than the industry average of 49x, reflecting the company's growth potential in the vehicle networking and autonomous driving sectors [1][131] - Absolute valuation suggests a fair value range of 34.15-47.33 yuan per share, based on a WACC of 8.45% and a long-term growth rate of 2% [1][137]