Desay SV's net profit increased by 60%, and the new intelligent driving product release will be the focus of attention| see the wisdom research

On the evening of April 14, Desay SV announced its 2021 financial report, the company achieved sales of 9.569 billion yuan, an increase of 40.75% year-on-year, and achieved a net profit attributable to shareholders of listed companies of 833 million yuan, an increase of 60.75% year-on-year. Basically in line with the previous market expectations.

The company has three major business revenue sources, including intelligent cockpit, intelligent driving and intelligent networking business, the product matrix is very rich, the fastest growth in business is intelligent driving, revenue growth basically doubled year-on-year, in June this year, IPU04 intelligent driving domain controller will become the star product of this year's mass production, will be assembled in the ideal X01 model. In addition, the company continues to increase investment in the research and development of multi-category products, and vigorously develops high-performance millimeter-wave radar in the field of intelligent driving perception.

Smart cockpits contribute the most to revenue, and the industry still has room to double the market

The smart cockpit business continues to be the company's largest source of revenue, with products in the cockpit domain including entertainment information systems, LCD instruments and display modules. The total revenue for the whole year was about 7.9 billion yuan, accounting for 82.48% of the total revenue, an increase of 33.52% year-on-year. On closer inspection, although the revenue of this business has increased, the proportion has declined slightly, down about 4.5 percentage points. However, it does not affect the future development prospects of the industry.

According to the forecast data of the prospective industry, the penetration of China's smart cockpit will reach 75.90% in 2025, which is expected to lead the global level, while this value will only be 53.30% in 2021, which is enough to see that the industry is in the boom cycle stage of rapid development in the next few years. With the upgrading trend of smart cars and the continuous improvement of sales of new car-making forces, the demand for smart cockpits has become inevitable.

According to ICVTank's forecast, by 2025, the global smart cockpit market size can exceed 100 billion yuan, the mainland will occupy 10% of the market share, reaching 103 billion yuan, the current Chinese market size of more than 50 billion yuan, there is a doubling market space.

Therefore, in the cycle of industry boom development, Desay SV will continue to enjoy industry dividends in the future. It is worth mentioning that the concentration of the domestic smart cockpit market is low, and the company ranks in the leading position in the industry. At present, the smart cockpit domain controller is not particularly demanding on computing power.

The growth of the intelligent driving business has doubled, and the volume of IPU04 is expected in the second half of the year

In 21 years, the revenue of intelligent driving business and the proportion of the company's total revenue have increased significantly. Specifically, the total revenue of this business was about 1.4 billion yuan, an increase of 94.78% year-on-year, becoming the fastest growing business among the company's three major businesses in 21 years, and increasing the proportion of intelligent driving business in the total revenue by about 4 percentage points, reaching 14.50%.

The company's intelligent driving domain controller products are mainly IPU01-04 four models; these four are gradually upgraded from low-end to high-end: from IPU01 to integrate surround view and parking functions; IPU02 increase lane changes; IPU03 is a large-scale intelligent driving domain controller produced in the market, which has been installed on Xiaopeng's P7; IPU04 is a span product from L3-L4, with a computing power of 254-1064ToPs, which is expected to be mass-produced in June this year. According to previous market news, in addition to the ideal X01 model, at least two models will be equipped with IPU04.

It is worth noting that the intelligent driving business is a very critical point is the high demand on computing power, it can be said that the computing power of the chip has become the most core factor that determines the intelligent driving level, according to the industry's standard division, L3 level is the watershed of automatic driving computing power, the computing power demand of AI chips is required to reach 20ToPs, and L4 and L5 levels are more than 10 times the growth, to reach the 400Tops and 4000ToPs computing power level respectively. The company itself does not carry out chip research and development, mainly using the outsourcing model, has cooperated with the highest level of chip manufacturers in the market Nvidia, IPU04 will be equipped with Orin chips.

Long-term layout to create a car networking ecology

Netlink service is the company's least revenue business, the annual revenue of about 289 million yuan, growth rate of 65.10%, the speed of development is still relatively fast, the business is mainly driven by software, the goal is to create a new ecology of the vehicle network, has now realized the integration of vehicle OTA, network security, Blue Whale OS terminal operating system, and has obtained FAW-Volkswagen, Changan Ford, GAC Toyota, SAIC-GM-Wuling and other customer orders. The rapid acquisition of orders in this business is inseparable from the global automotive OEM resources accumulated by the company in the past 40 years. The company's former customer base includes many benchmark customers such as European and American, Japanese and domestic independent brands, which is crucial for promoting the ecology of the Internet of Vehicles business

R&D investment is as high as 1 billion yuan

Research and development continued to increase significantly, with an investment of nearly 1 billion yuan in 21 years, an increase of 39.41% year-on-year. In the new field of automotive intelligence, the investment in research and development and the introduction of highly educated talents are very important, and the investment in research and development has accounted for 10% of the operating income, and the age of research and development personnel is mainly concentrated in the age of 40 years old, more than 2,000 people.

The projects currently under development include: domain controllers, high-performance millimeter-wave radar, and lightweight intelligent cockpit projects;

Projects that have made phased progress include: the third generation of intelligent cockpit (mainly optimized system efficiency), the Internet of Vehicles ecosystem (integrated basic platform and terminal APP), intelligent body domain controller (integration of air conditioning, PEPS and door and window control);

Completed projects include: 5G & V2X in-vehicle antenna terminals capable of fulfilling high-performance communication requirements, including over-the-horizon perception, on a low-cost basis. It also includes on-board displays and vehicle-specific design solutions.

other

From the company's cash flow, it can also be seen that the company's sales capacity has improved, and the net cash flow of operating activities is about 843 million yuan, an increase of nearly double that of the same period last year, an increase of about 91.86%.

In addition, the Company referred to the impairment of goodwill resulting from the restructuring of its subsidiary, Desay SV Automotive Europe GmbH, which was established in 2012, and ANTEBB Holding GmbH and its subsidiary, Antenenentechnik Bad Blankenburg GmbH, which was acquired in 2019. The impact of the impairment of the goodwill of Desay SV Europe is very small and the company operates independently of the parent company, with a total goodwill book value of approximately $140 million and a loss of $22.52 million. The company, which is primarily a European market business, expects operating income growth to be between 23.58% and 87.21% over five years, and net profit margin is expected to grow from -28.74% to 4.92%.

Summary: The company's largest business source cockpit domain is still growing rapidly, intelligent driving has grown rapidly in the middle of last year, and the mass production of IPU04 this year has attracted much attention, or it will become an important source of revenue growth in the autonomous driving domain this year, which is worth paying attention to.