Directly hit the research | Hongsoft Technology (688088.SH): Intelligent driving front-loading fixed-point projects mainly dms and OMS Dongfeng Lantu and Some models of the Great Wall have achieved mass production

Zhitong Finance APP was informed that recently, Hongsoft Technology (688088.SH) said in a survey that the intelligent driving front-loading fixed-point project involved major domestic independent brands, including Great Wall, Changan, Changan New Energy, Geely, FAW Besturn, FAW Jiefang, SAIC Passenger Cars, Hezhong, Ideal, Dongfeng Lantu, Honda, Dongfeng Nissan and other automakers a variety of mass production models. Some models of the Zhongdong East Lantu and Great Wall projects have achieved mass production. At present, the number of intelligent driving front-loading fixed-point projects is still dominated by DMS and OMS. The solutions provided by the front-loading fixed-point project include DMS, OMS, Face ID, gesture control, TOF gestures, eye tracking, and AVM and BSD for the cabin. The company's current pure soft products sold on the front-loading fixed-point truck model have been increased to eleven types of intelligent driving solutions, and prices range from dozens to more than two hundred.

Hongsoft Technology introduced the company's main business situation at the research meeting, among which, in terms of the progress of intelligent driving products, the company has now reserved eleven types of solutions for the cabin and outside the cabin (including the driver monitoring system in the cabin, the visual interaction system, the passenger monitoring system, the biological authentication, the intelligent in-cabin joyful solution, the driver health monitoring system, the cabin selfie, the advanced driver assistance system focusing on the intelligent safety of the outside of the cabin, the blind spot detection system, the AR head-up display, and the 360° surround vision subsystem). At the same time, the company also has the technical reserves and products in line with information security and data desensitization security, and has added software and hardware integrated vehicle vision cabin and extravehicular solutions for the Tahoe and Westlake series of research projects.

In terms of the progress of intelligent driving business, the company's front-loading mass production fixed-point project involves major domestic independent brands and some joint venture brand car OEMs, including a variety of mass production models of Great Wall, Changan, Changan New Energy, Geely, FAW Besturn, FAW Jiefang, SAIC Passenger Vehicle, Hezhong, Ideal, Dongfeng Lantu, Honda, Dongfeng Nissan and other car manufacturers. Some models of the Zhongdong East Lantu and Great Wall projects have achieved mass production. In these fixed-point projects, the company provides solutions including DMS, OMS, Face ID, gesture control, TOF gestures, gaze tracking, and AVM and BSD for extra-cabin.

The company said at the research meeting that the current number of intelligent driving front-loading fixed-point projects is still based on DMS and OMS. The solutions provided by the front-loading fixed-point project include DMS, OMS, Face ID, gesture control, TOF gestures, eye tracking, and AVM and BSD for the cabin.

The company said it did not lock the target on the number of fixed points of the model this year. The reason is that since the second half of 2021, due to changes in the market environment, the company has gradually diluted the definition of the number of fixed-point models, but the actual results have indeed exceeded the number of original fixed-point targets. Now the car main engine factory basically uses the platform fixed point, the same chip platform once out of a lot of cars, the corresponding shipment of each car may exceed the target of the car factory, may also be lower than the target, so more emphasis is on the platform type of fixed point, more consideration is on the penetration of a platform, which depends on how the company and partners enter the industrial chain, really make it deep and wide, is one of the company's most important goals now.

According to Hongsoft Technology, the company is currently in the front of the fixed point out of the truck type sales of pure soft products, the company's intelligent driving solutions have been increased to eleven types of products, the price from dozens of pieces to more than two hundred pieces, the future company will continue to increase more functions according to market demand, increased functions, increased demand, the value of bicycles will be correspondingly improved.

Tahoe series is a smart cockpit software and hardware integrated vision solution, which can realize DMS solutions such as face recognition, driver fatigue distraction, dangerous movements and driver departure detection on small low-performance chips; The Westlake series is an intelligent external soft and hard integrated vision solution, which is a solution that can realize the integration of 8 cameras and sensor data such as out-of-cabin forward view, circumferential view, rear view, etc., and provide solutions for automobile driving assistance functions.

The company also pointed out that the company has its own layout outside the intelligent cockpit, based on the company's off-bay software solutions in the TI platform, Qualcomm platform have a research and development cooperation, Nvidia Orin platform in the entire extravehicular automatic driving domain is very hot, so Nvidia is also within the company's layout. For the intelligent cockpit, the company's focus on planning is now to put on the R & D line, the research and development of productization, of course, also hope to achieve some fixed-point projects or POC projects, so that the company's products continue to market landing and verification, this is the company's goal.

Some investors asked which customers the company's automobile business will break through in the next few years, the company said that the company's intelligent driving business planning is along the "from the domestic market, to the foreign market", "first in the cabin, and then outside the cabin", "from independent brands to joint ventures, foreign brands" path development and expansion, cooperation of car companies including great wall, Changan, Changan new energy, Geely, FAW Besturn, FAW Jiefang, SAIC passenger cars, Hezhong, ideal, Dongfeng Lantu, Honda, Dongfeng Nissan and other car factories, of which Honda, Dongfeng Nissan is a Sino-foreign joint venture car company. Pure foreign car companies are still in the process of expansion. In the future, it will continue to penetrate domestic independent brands, cover more joint venture brands and expand foreign brands.

Some investors asked about the progress of the company's optical screen fingerprint and the brightness ambient light sensor under the screen, and the company revealed that the company's optical screen fingerprint has been shipped in small quantities in 2021 and reflected in revenue; Under the screen brightness ambient light sensor, the same industry companies also put forward the traditional brightness sensor products, although the company's product solutions have advantages in technology, but the traditional solution product prices are low. Optical screen fingerprint and under-screen brightness ambient light sensor to some extent the situation is very similar, in the face of the entire supply system lack of core and there is price pressure, many manufacturers will choose more advantageous prices of products, so this piece in order to comply with the changes in the market, the company is readjusting the program.

In response to the problem that the charging model of mobile phone business packaging penetrates into the car, the company responded that at present, because the company has fixed the shipment of pre-installation projects is not very much, the company adopts the mode of piece-rate charging, and after the gradual release of the automobile business, the company should also increase the fixed cost business model, which will be more flexible.

The company introduced the application of Hongsoft algorithm in the Great Wall 8155 platform project and the ideal L9 project at the research meeting, and the company said that the great wall's intelligent cockpit program includes driver face recognition, driver fatigue/distraction detection, vehicle leftover items reminder, car left child reminder, gesture recognition and other DMS, OMS, visual interaction functions; The Ideal L9 is a new model, and the ToF-based gesture recognition introduced at the Ideal Conference is one of the algorithm products provided by the company.

In 2020, the gross profit margin of the company's intelligent driving business is about 40%, and some investors asked whether the gross profit margin has increased significantly in the case of the gradual embodiment of the pre-installation business in 2022, and the company responded that most of the company's intelligent driving business revenue in 2020 is brought by the aftermarket. The front-loading business currently sells pure soft products. Ideally, the company's front-loading business is slowly released, and the proportion of post-loading declines, and the overall gross profit margin should increase. The gross profit margin of the company's intelligent driving business is relatively low, the reason is that the front-loading business, at present, in the stage of input and output, the previous fixed point has now begun to gradually mass production, although the revenue has not yet been reflected in the scale, but the business model has begun to work, and the overall trend is benign.