Guojin Securities: The vehicle lens space is vast DMS lens penetration rate is expected to increase rapidly

Zhitong Finance APP learned that Guojin Securities released an industry research report that on December 27, Zosco R&D cloth sales of DMS systems for New Passenger Cars in China from January to September 2021 reached 250,000 sets, an increase of 244%, and the penetration rate was 1.7%. In 2020, the sales volume of DMS systems for new passenger cars in China reached 130,000 sets, with a penetration rate of 0.7%, and the penetration rate of the industry increased rapidly. Under the wave of intelligent driving, the bank is optimistic about investment opportunities in the automotive lens industry with high growth, high barriers and good pattern. It is recommended to pay attention to Sunny Optical Technology (02382) (car lens faucet, active layout of car module, lidar, HUD, intelligent headlight business), Yu Pupil Optics (300790.SZ) (security lens faucet active layout of car lens field, there are currently post-installation product shipments), Lianchuang Electronics (002036.SZ) (car lens first-mover advantage, Tesla, Nio car lens supplier), Lante Optics (688127.SH) (aspherical glass lens supplier).

The main views of Guojin Securities are as follows:

The penetration rate of DMS cameras is much lower than that of ADAS cameras, and there is a lot of room for improvement in the future.

According to different uses, cameras can be divided into imaging cameras and perception cameras (ADAS cameras). Imaging cameras are used for passive safety and store or send captured images to the user. ADAS cameras are used for active safety and need to capture images accurately.

Depending on the location, the vehicle camera can be divided into front view camera, side view camera, surround view camera, rear view camera and cabin camera. DMS camera belongs to the imaging camera is mainly used in the cabin, its main functions include driver fatigue detection, face recognition and other functions, 2020 DMS industry penetration rate (0.7%) is much lower than the ADAS camera penetration rate (15%), it is expected that the future with the main engine factory actively equipped, function upgrades, it is expected that the future DMS lens penetration rate is expected to increase rapidly.

It is expected that the automotive lens market will reach 25 billion yuan in 2025, with a five-year CAGR of 31%.

1) Automatic driving can be divided into L0 ~ L5 six levels, the current main mobile driving level between L2 ~ L3 stage, the main functions cover reversing monitoring, panoramic parking assistance, blind spot detection, adaptive cruise, forward collision warning, intelligent speed control, lane departure alarm, pedestrian detection system, traffic signals and sign identification, the general L2 level intelligent auxiliary driving equipped with 5 to 8 cameras, L3 level intelligent auxiliary driving equipped with 8 to 16 cameras. L4 and L5 level autonomous driving ADAS systems are still in the research and development stage, and generally need to be equipped with more than 13 cameras.

2) According to TSR, global shipments of on-board cameras reached 165 million in 2020, CAGR reached 30% in the past decade, and the number of cameras on bicycles reached 2.1. The number of cameras on bicycles in 2025 will be 5.5, assuming that global car sales are 0.9 billion units, corresponding to 500 million global car camera sales in 2025. Assuming that the average price of on-board camera lenses in 2020 is 40 yuan, considering specification upgrades, the price will increase by 5% per year in the future, corresponding to the global car camera lens market of 25 billion yuan in 2025, and the five-year CAGR will reach 31%.

Shunyu Optics is the absolute leader, and the second-tier enterprises are promising.

The market pattern of in-vehicle lenses presents a situation of "one super and many strong", with sunny optical shipments exceeding 56 million in 2020, with a market share of 34%, and the second to eighth places are foreign-funded enterprises with a market share of 38%. Among the ADAS lenses with higher specifications and barriers, Sunny Optics has a market share of more than 50%. Domestic Lianchuang Electronics, Yu hitomi optics are actively layout the field of vehicle lenses, although the current market share is low, the bank believes that the future with the rise of new domestic car-making forces, domestic second-line car lens companies have great potential.

The automotive lens industry has high barriers, and companies with molded glass lenses have more advantages.

Optical lenses are high-barrier industries, mold design and manufacturing, lens design and manufacturing is extremely difficult, design requires rigorous formulas and more imagination, manufacturing needs to master a lot of know-how to ensure yield. Vehicle lens barriers are higher, mostly full glass lenses or glass-plastic hybrid lenses, aspherical glass lenses have outstanding advantages, and companies with molded lens production capacity have more advantages.

Risk warning: intelligence is not as expected, industry competition is intensifying, and technology iteration is risky.

This article is from the Automotive Electronics Industry Research Report of Guojin Securities, analysts: Fan Zhiyuan, Liu Yanxue, Deng Xiaolu, Zhitong Finance Editor: Yang Wanlin