The car "black box" is about to be forced to get on the car Qiming Information led the rise in EDR concept stocks

Last week, Qiming Information (SZ.002232) received 3 up and down boards in 5 trading days, and the stock price rose from 10.10 yuan / share to 24.76 yuan / share in one month. As a result, on December 7 and December 9, Qiming Information issued two announcements of abnormal stock fluctuations, indicating that there was no information that should be disclosed but was not disclosed. So, why did Qiming Information suddenly become popular?

According to the latest version of the "Technical Conditions for the Safety of Motor Vehicle Operation", from January 1, 2022, all newly produced passenger cars in China are mandatorily equipped with EDR. At that time, the "Automotive Event Data Recording System" standard will also be officially put into use as the technical national standard of EDR. Qiming Information is the leading enterprise in the field of EDR, and at the same time, a number of EDR concept stocks have also strengthened.

EDR will become standard in vehicles

The full name of EDR is Event Data Recorder, which is a car event data recording system. EDR is used to record the key operating data of the car in the three stages of the vehicle before, during and after the collision (including speed, ABS status, seat belt status, etc.). In other words, EDR is the most authentic "black box" in the automotive industry, and the information it records can reproduce the accident process for automotive accident analysis. In addition, in order to avoid infringing on user privacy, the real "black box" generally does not have the function of recording audio or video, which means that EDR is not a concept with traditional car video recorders.

China's EDR standard was determined at the end of November 2019, and the participating units of the standard cover mainstream car companies such as SAIC, Geely, Dongfeng, FAW, Changan, and Weilai. At present, many countries have written passenger cars equipped with EDR into the bill or industry standard, of which the United States as early as 2014 made it clear that all new cars need to be mandatorily equipped with EDR, South Korea has been mandatory to install EDR since December 2015, Europe requires mandatory installation of new cars in March 2022, and plans to equip stock cars in 2024.

It is worth noting that the new regulations also mention that passenger cars should also be considered compliant if they are equipped with an on-board video driving record (DVR) device that meets the requirements of the standard. Compared with EDR, the dashcam only records the vehicle position, video data, and does not record the key data of the vehicle's operation at the time of the accident. For the sake of personal privacy protection, many European countries, including Germany and Austria, are currently prohibited from using driving recorders, and even if they are installed in violation of the law, it is difficult for video data to be used as court evidence. Especially in future autonomous driving accidents, the car "black box" will become "data iron evidence" for automobile accident analysis.

Another outlet after ETC

On December 10, EDR concept stocks collectively strengthened. As of the close, Qiming Information was up and down, Hongquan Internet of Things (SH.688288) rose 2.2%, xingmin zhitong (SZ.002355) rose 1.96%. Undoubtedly, with the blessing of the wave of electrification and policies, EDR has become a new focus of the auto parts industry and even the capital market.

"The last round of ETC rushing to install the tide created a six-fold increase in Wanji Technology in 2019. And the upcoming 2022, the rush of EDR will create the next 'Wanji Technology'. Chen Pengfei, assistant fund manager, said.

Previously, models equipped with EDR equipment were mainly high-end models and models with a high level of intelligence. According to high-tech industry research data, in 2020, there were only 1.3571 million new cars equipped with EDR equipment, with a market penetration rate of 7.12%. Founder Securities Research Report said that china's passenger car sales are expected to reach 23 million units in 2022, according to the incremental EDR equipment is about 80%, China's incremental EDR market will reach 5.5 billion to 7.4 billion yuan next year (not including the value of EDR data extraction tools). At the same time, the potential market for EDR equipped with subsequent stock passenger cars will also be very impressive.

However, some insiders pointed out that this new blue ocean may not bring new entrepreneurial opportunities. First of all, the manufacturing of EDR has a certain technical threshold, involving chips, software and other industrial chain links. Secondly, since the passenger car EDR adopts the front-loading mode, the safety and reliability requirements for the vehicle specification level are high, and independent EDR manufacturers need a long verification period to enter the OEM.