(Report Producer/Author: Guosen Securities, Xiong Li)
Jingwei Hengrun - the rising leader of domestic automotive electronic systems
Development history: Deep ploughing industry for 20 years, gradually growing into a comprehensive electronic system technology service provider
Matrix Partners Hengrun is a comprehensive electronic system technology service provider. Founded in 2003, the company focuses on providing electronic products, R&D services and high-level intelligent driving solutions for customers in the fields of automotive and unmanned transportation. Headquartered in Beijing, and in Tianjin, Nantong to establish a modern production plant, the formation of a sound R & D, production, marketing, service system, the company's business covers electronic system research and development, manufacturing to operation services in all stages. The company's electronic products, R&D services and solutions, and high-level intelligent driving overall solution business have formed a "trinity" business layout, and are committed to becoming a world-class comprehensive electronic system technology service provider, a full-stack solution provider of intelligent networked vehicles and a leader in high-level intelligent driving MaaS solutions.
Core team: outstanding professional background, mainly self-cultivation, solid structure
The core management of the company is mainly based on independent training, has a rich professional background, and the team is very stable. The core team of the company is a master's degree, mainly graduated from Beijing University of Aeronautics and Astronautics, Tsinghua University, Harbin Institute of Technology and other well-known universities in China, with a strong professional background in the field of electronic systems. The company's core team are all internal training, has set up an efficient, professional, with international vision of the R & D team, since the early stage of entrepreneurship and the company to struggle so far, the core team is very stable. As of the first half of 2021, the company has a total of 1373 R&D personnel, accounting for 44.94% of the total number, a total of 164 computer software copyrights, and has 1477 authorized patents, including 617 invention patents.
The actual controller of the company is the founder Ji Yingcun, who holds a total of 62.24% of the voting rights of the company. The founder, Mr. Ji Yingcun, graduated from Beijing University of Aeronautics and Astronautics majoring in automatic control, with a doctoral degree, and was an engineer in the overall design department of Beijing space vehicles and the manager of the Shanghai office of Beijing Oso Technology Co., Ltd. Currently, he serves as the chairman and general manager of the company. Mr. Ji Yingcun directly holds 32.75% of the company's shares, and controls a total of 44.36% of the company's shares through 7 employee shareholding platforms. Due to the special voting rights system set up by the company, the number of voting rights held by each Class A share is 6 times the number of voting rights held by each Class B share, and Mr. Ji Yingcun currently directly controls 54.36% of the voting rights, and the total control of the company's voting rights is 62.24%.
Customer structure: The company's customer structure is of high quality, covering the head OEM and Tier1
The company's core customers cover the head vehicle OEM and well-known first-class suppliers. Through long-term business accumulation, the company has formed a customer base in the automotive field with DOMESTIC and foreign vehicle manufacturers such as FAW Group, BAIC Group, China National Heavy Duty Truck, SAIC Group, GAC Group, Navista and other domestic and foreign vehicle manufacturers and internationally renowned automobile Tier 1 suppliers such as Innafa, Antolin and BorgWarner as the core, and has also obtained customers in the field of high-end equipment such as COMAC and CRRC and customers in the unmanned transportation field such as Rizhao Port.
The company's customer structure is of high quality, and FAW Group is the company's largest customer. The company's top five customers in the first half of 2021 are FAW Group, China National Heavy Duty Truck, BAIC Group, SAIC Motor Group, and GUANGZHOUC Group, mainly head OEMs, and the total revenue of the top five customers accounts for 57.44%. Among them, FAW Group is the company's largest customer, and the revenue of 18-21H1 accounts for 10.23%, 26.30%, 27.83% and 32.23% respectively.
Business analysis: Layout of five major domains of automotive electronics, ADAS and intelligent networking are growing at a high speed
As a comprehensive electronic system technology service provider, the company focuses on electronic systems, focusing on providing electronic products, R&D services and solutions and high-level intelligent driving solutions for customers in the fields of automobiles, high-end equipment, unmanned transportation, etc., forming a three-in-one business layout, supporting each other and coordinated development in terms of core technology, application scenarios, and industry customer groups.
Electronics business: including automotive electronics, high-end equipment electronics and automotive electronics development services. The company's 2018-2021 electronic product business revenue accounted for 59.25%, 66.00%, 72.62% and 76.57%, is the company's largest business, of which mainly based on automotive electronic products, to the data of the first half of 21 as an example, the five major automotive electronic products accounted for 83.14% of the total revenue, high-end equipment electronic products revenue accounted for 1.00%, automotive electronic products development services revenue accounted for 6.50%;
R&D services and solutions business: R&D services for automotive electronic systems and high-end equipment electronic systems, providing various technical solutions, tool development and process support services for customers' electronic system R&D processes. The business is the second largest business of the company, and the revenue of the company's business in 2018-2021 accounted for 40.08%, 33.41%, 25.57% and 21.67%, and the proportion of revenue gradually declined;
High-level intelligent driving business: Providing commercial operation of high-level intelligent driving system travel-as-a-service (MaaS) solutions, the company entered this business area in 2015 and currently launches more than 20 intelligent driving port vehicles in Tangshan Port and Rizhao Port.
The company's electronic products business mainly includes three parts: automotive electronic products, high-end equipment electronic products and automotive electronic products development services:
(1) Automotive electronic products: layout of intelligent driving, intelligent networking, body and comfort domain, chassis control domain, new energy and power system domain five major domains. Body and control domain currently account for the highest proportion, 21H1 revenue accounted for 38.57%, intelligent driving and intelligent network products in the past three years quickly increased, intelligent driving revenue accounted for from 4.45% (2018) to 25.31% (2021H1), intelligent network revenue accounted for from 6.59% (2018) to 15.92% (2021H1);
(2) Automotive electronic products development services: Relying on their own experience and technical advantages in the fields of intelligent driving, intelligent networking, new energy and power systems, body and comfort zone, chassis control and other fields of automotive electronic products, according to the customized needs of new model projects of vehicle enterprises, organize personnel to carry out customized development services for automotive electronic products after product designation;
(3) High-end equipment electronic products: Supporting the production of mechanical and electrical control products for customers in the field of high-end equipment.
Financial analysis: The rapid growth of the automotive electronics business has led to a sustained increase in the company's performance
The compound growth rate of the company's revenue in the past four years is nearly 30%, and its profitability has continued to increase. The company's operating income from 2018 to 2021 was 1.539 billion yuan, 1.845 billion yuan (+19.91%), 2.479 billion yuan (+34.45%) and 3.262 billion yuan (+31.61%), respectively, with a compound revenue growth rate of 28.45% in the past four years; the company's net profit attributable to the mother in 2018-2021 was 0.21 billion yuan, -0.60 billion yuan, 0.74 billion yuan and 0.27 billion yuan (+233.33%) and 146 million yuan (98.37%), and the company's profitability continued to increase.
Due to changes in business structure, the company's gross profit margin decreased slightly. The company's gross profit margin for 2018-2021 was 39.36%, 34.47%, 32.79% and 30.88%, respectively. In terms of business, (1) electronic products business: the company's electronic products business Gross profit margin in 2018-2021 was 32.36%, 26.91%, 26.62% and 27.55%, respectively, of which the significant decline in gross profit margin in 19 years was mainly caused by the company's active price reduction in order to develop the market; (2) R & D services and solutions business: The gross profit margin of the company's R&D services and solutions business in 2018-2021 was 49.34%, 48.80%, 49.81% and respectively 42.01%, the overall stability; (3) high-end intelligent driving business: the company's high-end intelligent driving business in 18 years and 19 years mainly based on algorithm development services, the gross profit margin is higher, and in 20 years, the business is mainly based on the overall solution revenue including software and hardware integration, so the gross profit margin has declined.
ADAS and intelligent networking products have become the driving force behind the company's growth. From the perspective of product structure, the company's intelligent driving and intelligent network products have grown rapidly in the past three years and have become the main driving force for the company's growth; while the company's body and comfort zone products still account for a relatively high proportion of revenue, which is the largest source of revenue for the company's automotive electronics business. In terms of products, the main reason for the decline in the gross profit margin of body and comfort zone electronic products in 2019 is that customers of commercial vehicle bodies and door control systems have reduced the price of the whole vehicle in order to seize the market, resulting in a large annual decline in the company's products; intelligent network electronic products, etc. In order to seize the market, the company has taken the initiative to appropriately reduce the price, making its gross profit margin drop more.
During the company's period, the expense ratio decreased steadily, and the management efficiency continued to improve. The company's sales expense ratio in 2018-2021 was 10.23%, 10.01%, 7.22%, 5.97%, the company's management expense ratio in 2018-2021 was 10.58%, 10.64%, 7.29%, 6.57%, and the company's R&D expense ratio in 2018-2021 was 17.24%, 17.60%, 14.21%, 13.98%, and the expense ratio continued to decline as the company's revenue scale continued to grow.
The company's R & D investment continues to maintain a high level, strong R & D strength. The company's R&D expense ratio in 2021 is 13.98%, and compared with its peers, the company's R&D expense ratio as a whole maintains a high level. As of the first half of 2021, the company has obtained a total of 1477 authorized patents, including 617 invention patents and 164 computer software copyrights. The company's R & D personnel totaled 1373 people, accounting for 44.94% of the total number, 54.89% of employees with master's degree or above, and 86.74% of employees with bachelor's degree or above, significantly higher than comparable peers, strong R & D strength. (Source: Future Think Tank)
The control nodes are shrinking and the ADAS penetration rate is increasing rapidly
Deep cooperation with Mobileye to achieve ADAS system core product coverage
The company began research and development of ADAS-related products in 2010 and began shipping in 2016, and currently has three series of products, including ADAS, ADCU and HPC. Since 2010, the company began to develop intelligent driving (ADAS)-related products, and in 2016, it successfully broke the overseas monopoly and began mass production of SAIC Roewe RX5 models. In 2020, the 77GHz forward millimeter wave radar independently developed by the company achieved a breakthrough, and achieved the fixed point of Jiangling Motors, Jianghuai Automobile, SAIC Hongyan and other enterprises. The company's current ADAS series products have completed four generations of iterations, realizing basic driving assistance functions, fully considering the driving behavior of Chinese drivers and China's road conditions, and more suitable for the driving habits of Chinese.
ADAS series: ADAS series products built on Mobiley chips for auxiliary driving needs below L2 level, which have been equipped with FAW Roewe RX5, FAW Hongqi H5/H7/H9/HS5/HS7/E-HS3/E-HS9, Geely Boyue Pro/New Binyue/Emgrand, FAW Jiefang J6/J7, Sinotruk Howo T7 and other models. Company 2018-2021H1 Sales of this product were 6.75, 10.18, 30.67 and 272,300 units;
ADCU series: High-performance computing units for L2 and L3 based on Infineon+Mobileye chip solutions. It can realize high-precision, high computing power, low energy consumption intelligent driving system solution, provide sufficient application layer software operation resources, and realize safe, accurate and stable automatic driving in highway or urban expressway scenarios and traffic congestion scenarios, and in 2020, the product will be mass-produced with FAW Hongqi E-HS9 models;
HPC Series: The company's new generation of HPC selects Texas Instruments' TDA4 and Infineon's TC397 chips, equipped with Linux and RTOS operating systems, integrated AutoSAR and self-developed application framework (AF) two types of middleware, to meet the needs of complex computing, high real-time and other different applications. It can be equipped with self-developed or customer-customized artificial intelligence perception algorithms, path planning and control schemes to achieve safe, accurate and stable automatic driving in scenarios such as highways, urban roads, and parking lots. The product has been targeted by customers such as Yingche Technology and Baoneng Automobile.
The company has a comprehensive layout in the field of intelligent driving, providing automotive electronic products such as domain controllers for L1-L3, millimeter-wave radar, cameras, and high-precision positioning. The company's intelligent driving electronics include Advanced Driver Assistance Systems (ADAS), Intelligent Driving Domain Controllers (ADCU), In-Vehicle High Performance Computing Platforms (HPC), Millimeter Wave Radar (RADAR), In-Vehicle Cameras (CAM), High Precision Positioning Modules (LMUs), Driver Monitoring Systems (DMS) and Automatic Park Assist System Controllers (APA).
The front-view system has a rapid increase in assembly rate, and L0-2 ADAS is the best price/performance ratio
The company's current ADAS shipments are mainly based on the Mobileye EyeQ series of chips for the front-view all-in-one solution. Jingwei Hengrun's ADAS product Forward Active Safety Camera (FAS-Cam) is a typical all-in-one smart sensor (Smart Sensor). The company sold 308,000 and 290,000 sets of smart driving products in 2020 and 2021H1, respectively, of which the sales of ADAS system products (i.e., front-vision all-in-one models) were 30.67 and 272,300 units.
Mobileye's EyeQ1 has shipped 100 million of EyeQ chips since it was mass-produced in BMW, GM and Volvo in 2007. EyeQ series chip sales from 2018-2021 were 12.4 million, 17.5 million, 19.3 million and 28.1 million, a year-on-year growth rate of 43%/41%/10%/46%, Mobileye revenue also increased from $696 million in 2018 to $1.386 billion in 2021, corresponding to the average unit price of the EyeQ series of chips is about $50, at the current exchange rate, about 320 yuan / piece. According to the company's prospectus, the company's purchase amount from Mobileye in 2018-2021H1 was 0.37, 0.55, 1.50 and 133 million yuan, which basically matched the company's sales volume of ADAS series products in the same period.
Mobileye has a market share of more than 30% and is delivered in a "chip + algorithm" model. There are generally two modes for the supply of the core algorithm of the forward-looking system: one is the self-research mode, from the core algorithm to the system integration, such as Bosch, Continental, etc.; the other is the division of labor mode, the core algorithm is supplied by Mobileye, and the system integration is responsible for Tier1. In addition to Matrix Partners, Mobileye's partners also include Aptiv, ZF, Kosta, Wistron Capital, Ehang Yuanzhi, Zhixing Technology, etc. According to data from Gaogong Automobile, Mobileye still ranks first with a market share of 36.29%, more than 13 percentage points ahead of second-place Bosch. According to Mobileye's official data, in 2021, Mobileye received 41 new orders from more than 30 car companies.
Matrix Partners' passenger car ADAS is based on the VO technology route, and commercial vehicles are mainly based on the 1V1R technology route. The company primarily offers VO (Vision Only, ADAS products contain only 1 camera), 1V1R (One Vision and One Radar, ADAS products include 1 camera and 1 millimeter wave radar), and 1VxR (One Vision and x Radar, ADAS products contain 1 camera and multiple millimeter wave radars). According to the company's announcement data, as of September 2021, the company's ADAS products have obtained 84 model mass production, 14 fixed points, divided by vehicle type, of which 70 passenger cars, a total of 61 models using VO technology routes (54 mass production, 7 fixed points), 28 commercial vehicles, a total of 27 models using 1V1R technology routes (25 mass production, 2 fixed points).
Vo's pure vision scheme has cost advantages, but its recognition capabilities are relatively weak at night. VO pure vision program has significant cost advantages in cost, according to the company's prospectus disclosure, the company's 2021H1 intelligent driving products average selling price of 1196 yuan / set, and 1V1R due to the addition of a millimeter wave radar, an MRR medium-range millimeter wave radar average selling price of about 300 yuan, 1V1R is expected to be about 250 US dollars / set, equivalent to more than 1700 yuan. The core disadvantages of the pure vision scheme are due to the simple recognition of 2D images, the lack of spatial stereoscopic modeling capabilities, and the low recognition ability of vo schemes under poor lighting conditions.
The company has strong technical strength and is one of the few domestic Tier1s that has achieved mass production of front-loading ADAS systems. According to the data of Zosz Auto Research Institute in 2020, the suppliers of new front-view systems for passenger cars in China are mainly Denso, Bosch, Aptiv, Kosta, Panasonic, Weininger, Continental, Jingwei Hengrun, CR10 has a market share of more than 90%, in addition, the company is also the only domestic manufacturer among the top ten suppliers of front-view systems for new passenger cars in China, with a market share of 3.6%. In the self-owned brand passenger car market, the company's front view system market share accounted for 16.7% in 2020, ranking second in the market after Bosch.
The company's commercial vehicle heavy-duty truck ADAS market share of 20%, ranking second only to Neusoft Ruichi. From September 2020, according to policy requirements, trucks and tractors should be equipped with dual early warning systems, namely lane departure warning system (LDW) and vehicle forward collision warning system (FCW). The landing of the front-loading regulations has also spawned the active safety track of heavy trucks in commercial vehicles. According to data from Gaogong Automobile, in 2021, the insurance volume of new vehicles with standard double warning (LDW + FCW) in front of domestic commercial vehicle operating trucks (tractors + trucks) was 659,500 units, accounting for 47.39% of the new vehicles in medium and heavy-duty operating trucks. Neusoft Ruichi, Jingwei Hengrun, Qingzhi Technology, Furitec, MINIEYE are in the first echelon, the total market share of the five is nearly 90%, and the market share of Jingwei Hengrun is 20%, second only to Neusoft Ruichi.
It is estimated that by 2025, the assembly rate of the vision system is expected to exceed 60%. According to the data of Zosco Automobile Research Institute, the assembly volume of china's new passenger car front vision system in 2020 was 4.986 million units, an increase of 62.1% year-on-year, of which the independent brand was 1.063 million units, an increase of 43.9% year-on-year, accounting for 21.4%; the joint venture was 3.905 million units, an increase of 68.0% year-on-year, accounting for 78.6%; from the assembly rate, the overall assembly rate of China's front-vision system in 2020 was 26.4%, an increase of 10.9 percentage points year-on-year. Among them, the autonomy was 16.1%, an increase of 6.5 percentage points year-on-year; the joint venture was 32.0%, an increase of 13.7 percentage points year-on-year. With the improvement of the computing power of the forward-looking system and the continuous increase of its functions, it is expected that by 2025, the assembly volume of the front-view system for passenger cars in Mainland China will reach 16.305 million units, and the assembly rate will reach 65.0%.
The control nodes continue to shrink, driving the continuous iteration of the ADAS system architecture
As the EEA architecture moves toward centralization, so does the ADAS system architecture control node. L0-L2 level distributed system scheme is mainly composed of four control nodes: forward ADAS system, side and rear ADAS system, automatic parking system, and panoramic surround view system. With the intelligent front-view camera to integrate the lens module and the computing platform motherboard, the ECU motherboard contains 2 chips, using the safety core (Safety Core) and the performance core (PerformanceCore) chip combination architecture case: the safety check has high safety level requirements, the calculation requirements are not strong, and the MCU is generally selected, such as Infineon TC297/397, etc., and the performance core allows the function safety level to be low under the cost consideration, but to bear a lot of computing, To meet the performance requirements of the controller, high-performance SoCs are generally selected, such as Mobileye's EyeQ4, EyeQ5 and NVIDIA Xaiver. For the L2+ level domain centralized solution, the control node begins to shrink, the forward ADAS system and the side rear ADAS system are realized by the traffic controller, the automatic parking system and the panoramic surround view system are realized by the parking ECU, which is still in the stage of separation of driving and parking, and for high-level solutions, the driving and parking are combined into one, and the domain controller that appears as a unified control node to achieve all ADAS functions.
(1) The first stage: L0-L2 level distributed system solution
The L0-L2 level distributed system scheme is mainly composed of: (1) driving ADAS system ( Driving ADAS System) consists of a forward ADAS system and a side-back ADAS system; (2) a parking ADAS system (Parking ADASystem) automatic parking system and panoramic surround view system.
Forward ADAS system: consisting of a single FCR (Front Central Radar, front radar module), or a single FCM (Front Camera Module, front camera assembly), the current mainstream configuration is AFR +FCM composed of 1R1V solution, can support TJA/ICA L2 ADAS (single lane driving assistance);
Side-rear ADAS system: It is composed of two SRRs (Side-Rear Radars) in the rear of the side, which realizes most of the lateral rear ADAS functions;
Automatic parking system: that is, the APA (automatic parking assistance) system composed of parking controller + 12 ultrasonic sensors (USS); the implementation function is mainly APA and FAPA;
Panoramic surround view system: composed of a panoramic surround view controller (at present, the controller has been rare, has been absorbed and merged into other controller nodes, mainly replaced by the car machine, parking controller or domain controller) + four fisheye cameras (Fisheye Camera).
(2) The second stage: L2+ level domain centralized solution
L2+ domain centralized system scheme can be divided into 1V5R scheme, 5V5R scheme and other typical radar-centric ADAS Solution, the control node gradually shrinks, and the domain centralized trend is gradually strengthened.
1V5R solution: 1 FCR + 1 FCM + 4 corner radars (Corner Radars), each sensor is still an intelligent sensor with computing power in nature, which can directly provide structured data to the MCU, and the MCU is responsible for the multi-sensor fusion algorithm and ADAS function of structured data, which does not require the calculation of the perception algorithm;
5V5R scheme: The first stage, the 1V5R+4V scheme separated from driving and parking, 1 FCR+1 FCM+4 angle radar + 4 fisheye cameras, the 4 fisheye camera represented by 4V is processed by a separate control node; the second stage, the real 5V5R scheme of driving and parking integration, the domain controller is composed of MCU + SoC chip, the forward-looking FCM camera is directly simplified to strip off the lens hardware of the computing function, and the SoC chip realizes forward vision + Visual perception computation for surround vision.
(3) Phase III: L3-4 level central scheme
L3-level domain controllers implement the main functions of the intelligent driving domain, and higher L4-5 levels will adopt a purely central architecture, and the high-performance computer (HPC) or vehicle-mounted central platform (VCC) will achieve cross-domain convergence of functions. (Source: Future Think Tank)
The EEA architecture is converging, driving the rapid outbreak of automotive electronic products in various fields
Intelligent network connection: steady growth in shipments, high-quality customer structure
The company's intelligent network product business has exploded rapidly, and it currently mainly provides two major products: remote communication controller (T-BOX) and gateway (GW):
Remote Communication Controller (T-BOX): The product provides data transmission, fault monitoring, remote control (open and close, air conditioning control, engine start), hotspot sharing, voice, digital key, aerial download and other services for the whole vehicle, the product was first mass-produced in 2014, forming a series of products suitable for Huawei, Qualcomm and other mainstream communication module manufacturers. The company has launched a new generation of T-BOX products based on 5G and V2X technologies. On the basis of the traditional car networking function, the product enriches the application functions such as audio and video surveillance, high-precision positioning, and intelligent reminder of driving, and will continue to expand more new applications in the field of intelligent networking, improve driving safety and traffic efficiency, and enhance user driving experience. The company's T-BOX has been equipped with FAW Jiefang J6, FAW Hongqi HS5/HS7, GAC E/V/LX, Jiangling Ford Collar, etc., and the company's 2018-2021H1 T-BOX product sales are 5.6, 21.2, 34.2 and 211,000 sets;
Gateway (GW): As a data interaction center for the vehicle network, the product can route network data under CAN, LIN, Ethernet and other protocols in different networks. The company's gateway products have the characteristics of platform, can be flexibly configured according to the customized requirements of customers in network topology, network management policies, etc., and the gateway software is developed based on AUTOSAR architecture, combined with information security related functions. OEMs can achieve high scalability of vehicle topology and vehicle information security through this product. The company's GW products have been equipped with SAIC-GM Buick GL8, Chery Tiggo 8, Geely Binyue/Binrui/Emgrand/Vision/Vision X3/Geometry A, GAC Trumpchi GS4/GS8/GM8, Xiaopeng P7, FAW Jiefang J6/J7, Sinotruk Howo T7, etc., and the company's 2018-2021H1 GW product sales were 42.4, 64.3, 83.7 and 501,000 sets.
Body electronics: it is the company's traditional advantage area, and its market position is significant
The company has rich experience in mass production of body and comfort areas, and the overall shipment volume of the company's 18-21H1 body electronic products is 543, 618, 659 and 4.28 million sets, which is far ahead in the domestic market. Among them, the company based on the platform anti-pinch algorithm and AUTOSAR production of anti-pinch controller, electric rear door controller and door domain controller and other products, has been for many mainstream vehicle manufacturers at home and abroad with a number of models, the company and the world's well-known sunroof system suppliers Innafa, Shanghai Yu Tian Guanjia, Ai Xisi and other years of cooperation, the company's anti-clip controller products have entered Geely, BAIC Group and other supporting systems, through Innafa and other international first-class suppliers, and finally supporting Ford Group, General Motors, Jaguar Land Rover , Daimler and other models. The company's anti-pinch controller products are equipped with Cadillac XT5, Jaguar F-PACE, Hyundai Sorento, Geely Boyue and other models, and the sales of anti-pinch controller products of the company in 2018-2021H1 are 277.9, 251.9, 248.3 and 1.763 million sets.
Chassis control domain, new energy and power systems, high-end equipment electronic products
(1) Chassis control domain:
The company's chassis control domain products are mainly EPS, and the line control dynamic system and chassis domain controller have obtained large factory fixed points. The company's electronic products in the chassis control domain mainly include: electric power steering controller (EPS), electronic parking system (EPB), wire control dynamic system (EWBS) and chassis domain controller (CDC). Among them, the line control dynamic system (EWBS) has obtained the Fixed Point of the Great Wall, and the chassis domain controller has obtained the order of NIO. The company's electric power steering controller (EPS) products include EPS with brush motors and EPS with brushless motors, product types include split type and PowerPack two types, the current series of products have been equipped with Dongfeng Fengshen D01/D02, Changan Span V3, Tata Intra1000/Intra1300 and other models. The company's electric power steering controller (EPS) sales for 2018-2021H1 were 19.11, 22.78, 24.27 and 96,500 units.
(2) New energy and power system:
The company's electronic products in new energy and power systems mainly include vehicle control units (VCU), battery management systems (BMS) and power transfer modules (PDS). (1) Vehicle control unit (VCU): The company launched the first generation of vehicle control unit products in 2010, VCU mainly includes new energy vehicle controller and commercial vehicle controller, is the core control component of the vehicle, can be customized according to customer needs to achieve vehicle mode judgment, vehicle drive (torque management), energy recovery control, cruise control and dozens of other functions. This type of product has served more than ten OEMs at home and abroad, has been mass-produced and developed more than 30 models, the main customers include FAW Jiefang, Jiangling Motors, Geely, Sinotruk, etc.; (2) Battery Management System (BMS): The company's BMS relies on its own technical strength and experience accumulation in the field of control systems, has covered 12V-800V battery pack types of various voltage levels, and takes into account the use of passenger cars and commercial vehicles, with a wide range of applicability, the main supporting customers include BAIC Group, Guoxuan Hi-Tech, Fu Neng Technology, etc.
(3) High-end equipment electronic products:
The company supports the production of mechanical and electrical control and other electronic products for high-end equipment customers such as COMAC and CRRC. The unit price of the company's high-end equipment electronic products is relatively high, with certain customized characteristics, so the representativeness of its average unit price is relatively poor. Affected by the demand for equipment models of downstream customers of high-end equipment, the average selling price of high-end equipment electronic products has increased significantly due to the company's delivery of more servo-driven control products to customers in 2021H1.
R&D services: Based on long-term practical experience, to provide customers with a full range of R & D support
With its long-term practical experience, the company provides customers with a full range of R & D service support. The company's R&D services and solutions business includes automotive electronic system R&D services and high-end equipment electronic system R&D services, providing various technical solutions, tool development and process support services for the electronic system R&D process of customers in different industries.
Industry trends: intelligent, networked, electrification to drive the proportion of automotive electronics continue to increase
The software and hardware are gradually decoupled, and the value distribution of the automotive industry chain is reconstructed. In the wave of software-defined vehicle development, the two core industry trends are the evolution of automotive EEA architecture and SOA architecture, the former determines the hardware "soil", the latter determines the software "cornerstone", and the two jointly promote the development of the new four automobiles (electrification, intelligence, networking, and sharing). The software and hardware are gradually decoupled, and the value distribution of the automotive industry chain is reconstructed.
The EEA architecture is the hardware "soil" of automotive intelligence. In the era of the Internet of Everything, a large number of ICT technologies and applications from the consumer electronics industry have entered the automotive field, which has also generated higher requirements for the computing power and architecture system of the car itself. The automotive EEA architecture is like the soil and foundation for the development of intelligent driving, and it is the key to determining its degree of intelligence; the SOA architecture is the software "cornerstone" of automotive intelligence. Most of the functional characteristics of intelligent networked vehicles rely on software to achieve, but traditional embedded automotive software development methods are difficult to support the exponential growth of automotive software scale and complexity. The automotive industry is also introducing advanced technologies from the field of IT technology, and the service-oriented SOA architecture is considered to be one of the core technologies that can support the development of automotive software in the future. SOA is to require each controller to provide its own capabilities in the form of services, so as to build a flexible and variable platform system that is independent of the model, chip, and operating system.
Intelligence, networking and electrification have driven the continuous expansion of the automotive electronics market. As the underlying hardware of automotive electronics shifts from simple logical computing to more powerful computing power support, automotive software has also changed from a single development based on a fixed hardware to portability, iterability and scalability. The degree of automotive electronics is gradually being regarded as an important criterion for measuring the level of modern automobiles, and automotive electronics has become an important technical measure to develop new models and improve automobile performance under the trend of intelligence, networking and electrification.
The cost of bicycle automotive electronics has continued to increase, and the scale of China's automotive electronics market in 21 years has reached nearly 900 billion. According to CCID think tank data, the proportion of passenger car automotive electronics in vehicle costs has increased from 3% in the 1970s to about 40% in 2015, and it is expected to reach 60% by 2025. With the level of automotive electronics and the increase in the cost of bicycle automotive electronics, the scale of the automotive electronics market has risen rapidly. It is estimated that by 2021, the global automotive electronics market will reach 2.02 trillion yuan, and the mainland automotive electronics market will reach 889.4 billion yuan.
Cars are highly intelligent, which greatly enhances the position of software in the automotive value chain. "Software-defined automobile" has become the strategic consensus of the head enterprises in the industrial chain. Software can be mainly divided into application algorithm software, middleware, system software, tool software and algorithm platform in hardware. System software mainly includes operating system and underlying driver software. Middleware is located between the operating system and the application algorithm software, abstracting hardware resources, providing a unified software interface for the upper-level application and algorithm software development, and facilitating the upper-level software development and invocation; the application software includes human-computer interaction of infotainment systems, interface design, ADAS software, body control software, etc.
The commercialization of unmanned heavy trucks landed rapidly, and the unmanned port came to the waves
Perception + decision + execution to create a commercial operation solution
The company has been in the high-end intelligent driving business since 2015 to create MaaS solutions. Since 2015, the company entered the high-end intelligent driving business, and has cooperated with a number of automakers, covering many scenarios including port intelligent collection cards, intelligent sanitation vehicles, intelligent park logistics vehicles, intelligent shuttle vehicles and so on. Since 2018, the company has carried out port MaaS business in Qingdao Port, Tangshan Port and Rizhao Port. The company has put more than 20 intelligent driving port vehicles into operation in Tangshan Port and Rizhao Port, and the commercialization process of high-end intelligent driving projects has been accelerating.
The world's first open fully automated container terminal in the world in which the company participated was launched in Rizhao Port. Rizhao Port, Jingwei Hengrun, FAW Jiefang, Suzhou Zhitu, ABB, ZTE, China Telecom and other enterprises jointly developed and applied the first domestic container terminal operation TOS system integrating high-end modules such as unmanned collection cards and remote intelligent driving, which was officially opened at Rizhao Port of Shandong Port Group on October 9, 2021, which is also the world's first open fully automated container terminal along the shore. The company mainly provides unmanned truck fleet system solutions, including SOA architecture design of unmanned vehicles, vehicle specification-level intelligent network controller, automatic driving perception-planning-control algorithm development, vehicle networking communication terminal and data background, 5G remote driving system, V2X vehicle-to-road coordination system, fleet scheduling management system FMS, etc.
The company develops bicycle intelligent solutions, intelligent fleet operation management solutions and vehicle-cloud data center solutions to commercialize high-level intelligent driving system mobility-as-a-service (MaaS) solutions:
Bicycle intelligent solutions: SOA-based autonomous vehicle architecture, functional safety and information security solutions, AI perception algorithms, self-developed intelligent driving and intelligent networking and other automotive electronic products and custom-developed wire-controlled vehicles;
Intelligent fleet operation management solution: Developed a vehicle networking system based on 4G/5G communication, connected intelligent vehicle terminal and background system, established a fleet operation scheduling monitoring system, fleet remote driving system, V2X vehicle-road coordination system, on-site operation and maintenance management information system, to achieve intelligent fleet operation management. The company's intelligent fleet operation management solution has the functions of business docking, vehicle scheduling, route planning, production process matching, automatic joint operation, exception handling, remote takeover and recovery with the existing systems of the business party;
Vehicle-cloud data center solutions: including cloud big data systems, digital twin systems, and OTA software upgrade management systems. The company has developed a cloud big data system for the continuous operation of intelligent driving systems. The system relies on the 5G network, with remote data acquisition, compression, transmission, analysis, playback, seamless docking with algorithm development tools and other functions, can serve customers from R & D to commercial operation of different stages; through the OTA software upgrade management system, the R & D team can be based on the cloud big data system for software iterative optimization, quickly deploy the new version of the software to intelligent vehicles, not only to achieve the overall rapid upgrade of the intelligent fleet, but also to achieve a specific upgrade of part of the controller software for some vehicles
Closed scene + low-speed operation, the port unmanned to step on the waves
Commercial vehicles are conducive to bypassing the technical difficulties in complex scenarios and achieving high-end autonomous driving before passenger cars. Since the current degree of intelligence and networking does not yet support full-road automatic driving, commercial vehicles restrict the driving location and time, avoid complex road conditions, and limit driving speed, which is conducive to bypassing technical difficulties in complex scenarios. There are six mainstream application scenarios for autonomous driving in the field of cargo commercial vehicles: unmanned ports, logistics parks, mining area scenarios, airport scenarios, trunk logistics, and terminal logistics. Due to the limited complexity of the scene, unmanned ports, trunk transportation, and mining areas are expected to become the first commercial scenarios to land.
Unmanned ports have become the vanguard of high-end autonomous driving commercialization. The unmanned port scenario has low difficulty in achieving automatic driving and high revenue. The port has a low driving speed and good closure, and from the perspective of various indicators of the difficulty of landing automatic driving, it has simple traffic signs, low pedestrian and vehicle interference, low route complexity, and high infrastructure improvement. At the same time, the port autonomous driving solution can realize the overall scheduling of transportation systems such as loading, unloading, and moving boxes, thereby reducing transportation costs, and solving the problem of labor shortage during peak periods, avoiding labor safety hazards, and high returns.
It is estimated that the penetration rate of L4 level automatic driving in China's ports will exceed 20% in 2025, corresponding to a market size of 6 billion yuan. At present, there are three solutions for port level transportation automation: automatic guided vehicle AGV (Automatic Guided Vehicle), unmanned cross-carrier ASC (AutonomousStraddle Carrier), and driverless collection card. According to the statistics of Zosz Automobile Research Institute, it is expected that by 2025, the penetration rate of L4 level automatic driving in China's ports will exceed 20%, the application scale of L4 level port automatic driving collection cards will reach 6000-7000 vehicles, and the scale of automatic driving in China's ports will exceed 6 billion yuan, accounting for about 30% of the global market.
Port automatic driving is a typical closed scenario + low-speed operation scenario, and it is a typical scenario in which automatic driving takes the lead in commercialization. Since 2018, a number of domestic autonomous driving technology solution providers have successively applied autonomous driving collection cards and gradually realized commercial trial operation. At present, more than ten ports in China have landed to apply automatic driving collection cards, and important coastal ports in the "north-central-south" have layouts.
Policies continue to help, and autonomous driving empowers port logistics
Relevant policies have been continuously improved, and the automatic driving of ports has entered the accelerated landing stage. The rapid development of autonomous driving technology has gradually reflected the commercial value in scenarios such as port collection and transportation, terminal container horizontal transportation, etc. A number of ministries and commissions have successively issued policies to actively promote the development of the autonomous driving industry, and encourage the application of autonomous driving technology in multiple scenarios such as road freight, urban distribution, ports, airports, logistics stations, etc., in order to create an efficient, safe and intelligent logistics and transportation system in the mainland.
(This article is for informational purposes only and does not represent any of our investment advice.) For usage information, see the original report. ）
Featured report source: [Future Think Tank].