Baolong Technology (603197) Quick Review of Major Events: TPMS Jointly Enters Operation to Accelerate the Progress of New Intelligent Driving Products

Baolong Technology (603197) Quick Review of Major Events: TPMS Jointly Enters Operation to Accelerate the Progress of New Intelligent Driving Products

Matters: On February 2l6, Baolong Technology Announcement Conference: released a series of self-developed new automotive dynamic vision and radar sensors and other products.

Guoxin Automotive’s point of view: We believe that Baolong Technology is based on traditional automotive parts manufacturing, conforms to the trend of electronicization of automotive parts and lightweight industry, and enters automotive electronics with the TPMS business as the starting point.

Core logic: 1.

The main business of TPMS benefited from the steady contribution of national mandatory regulations. The joint venture huf further increased the market share of TPMS, and the company aims to achieve the top three global TPMS; 2.

Increased the ability to research and develop automotive electronic control systems and internal high-pressure forming technologies. 360-degree look at new products cut into high-quality vehicle customers such as Geely. New smart driving products were released (77G and 24G millimeter-wave radars). The expected differences between the six sensors remained; 3.

The company is the Tesla industrial chain (supplying Tesla TPMS through the mainland); 4.

The trade war has eased the suppression of exhaust pipe and valve business.

We expect the company’s EPS to be 18/19/20 respectively.

04/1.

51/1.

75 yuan, corresponding to 25 for PE.

8/17.

9/15.

4 times, which is currently the highest expected value for automotive electronics. Considering that the company’s intelligent driving products are progressing beyond expectations, we upgrade the rating and upgrade the overweight rating to the buy rating. It is recommended to buy.

Comment: New products for intelligent driving released, leading domestic sensory sensor February 26, Baolong Technology released a series of new automotive dynamic vision and radar sensors, including dynamic vision sensors, 77G and 24G millimeter-wave radar, dual current visionSystems, infrared thermal imaging night vision devices, driver warning systems, vehicle face recognition systems, etc. This is a fusion application of artificial intelligence on the autonomous driving perception layer, which helps cars evolve from assisted driving to autonomous driving, autonomous driving.
A series of automotive dynamic vision and radar sensors released this time can realize vehicle internal control adjustment and external perception prediction in complex driving environments, and provide technical support for higher levels of assisted driving and even unmanned driving.

In addition, the product has a small size, high accuracy, and fast and accurate labeling, which is in line with the market’s development needs for restarting automotive intelligent upgrades.

Dynamic Vision Sensor (DVS): The dynamic vision sensor product developed by Baolong Technology team integrating chip technology chip technology and Wuhan University algorithm technology has high error, nanosecond response speed, effective filtering of background extraction information and other characteristics.Quickly and clearly display images and capture object movement trajectories under environmental conditions such as fog, strong light, and low light.

With the index of similar products of up to 300,000 tons produced by companies such as Inilabs in Switzerland, Prophesee in France and Samsung in South 武汉夜生活网 Korea, the dynamic vision sensor replacement released by Baolong Technology is more than three times its number, reaching 1 million. We believe that in the global automotive intelligenceUnder the competitive environment of continuous disruptive technological innovation in the field of perception, the launch of Baolong Technology is of great significance. The release of DVS and 77G and 24G millimeter-wave radar marks the breakthrough in the core technology of its new products, or it will be the domestic vehicle manufacturing industry.Provide the world’s leading smart car perception layer sensor solution.

The Hoover joint venture is committed to operation, and the TPMS market share is expected to rise to a higher level. Baolong Technology and Huf Hülsbeck & Fürst GmbH & Co.

KG (Hoover Group) joint venture company-BH SENS (Bao Fu Electronics), officially launched in January 2019, and began operations in China, Germany and the United States.

Hoover Group’s customer resources are becoming more advanced.

The Huo Fu Group is a world-famous company that specializes in the development and production of automotive identification and certification systems, driver identification and certification systems, keyless entry systems, car door handle systems, electric trunk systems, automotive mechanical lock systems, car networking systems and tire pressure monitoring systems.supplier.

The Hoover Group was established in Felbert, Germany in 1908, and in 1920, provided Mercedes-Benz with complete sets of door locks for the first time.

In 2012, Hoover Group established Hoover Electronic Bretton Company to obtain tire pressure monitoring system business.

So far, the Hoover Group has approximately 7,800 employees in 16 countries or regions, including more than 500 design and technical personnel.

Since its development, Hoover Group has become one of the global leaders in automotive tire pressure monitoring systems, with nearly 100 patents, supporting BMW, Mercedes-Benz, Volkswagen, Audi, Opel, Porsche, Bentley, Ferrari, Lamborghini, Maserati and other internationally renowned brands.Car customers.

The Huo Fu Group currently has subsidiaries in 19 countries and regions around the world, and 5 subsidiaries in China, which are located in Yantai, Shanghai, Changchun, and Chongqing.

Among them, Shanghai Huofu provides PCBA and electronic product manufacturing, China Huofu’s electronics research and development center is also located in Shanghai Branch, and Yantai Huofu Mold Branch focuses on mold manufacturing.

All Hoover branches in China supply directly to global OEMs and many Chinese car manufacturers.

Join forces to strive for the leading position of TPMS.

The joint venture company BH SENS, which was put into operation in January 19, has three companies, namely Baolong Huofu (Shanghai) Electronics Co., Ltd. (“Baofu China”) located in China and Hoover Baolong (Bure) Teng) Electronics Co., Ltd. (referred to as “Profood Germany”) and Hoover Prolong (North America) Electronics Co., Ltd. in the United States.

In order to integrate global business and strengthen brand recognition, the above three companies will uniformly adopt “BH SENS” (Chinese abbreviation “Bao Fu Electronics”) as the corporate brand name and launch a new logo.

BH SENS held the first executive committee meeting in Bretten Antiques, Germany in January after the launch of the joint venture to discuss the operation and integration of the joint venture. At the same time, it entered the 2019 Global IAM (Independent Aftermarket) Conference, focusing on research and discussionThe company’s products and sales strategies for the TPMS aftermarket in 2019.

Looking ahead to 2020, BH SENS also plans to set up a production base in Mexico to ensure supply in the North American market and become a leader in the global TMS market segment.

To sum up, adopting national mandatory requirements for vehicle manufacturers to install TPMS, China’s TPMS demand will see huge growth space by 2020. The joint venture company Baofu Electronics is a strong combination of two core companies in the TPMS industry. Baolong’s advantage in the Chinese marketLevel, including Hoover’s customer resources in the European and American markets, TPMS products are expected to achieve sales, both share rose.

At the same time, after the completion of Baolong Technology’s expansion project, it is expected to further consolidate the segmentation of industry leaders, and TPMS will become an important source of company revenue growth.

Investment suggestion: Intelligent driving products progress more than expected, upgrade level, and recommend buying. We believe that Baolong Technology is based on traditional automotive parts manufacturing, conforms to the trend of electronicization of automotive parts and lightweight industry, and uses TPMS business as an entry point to enter the automobile.electronic.Core logic: 1.

The main business of TPMS benefited from the steady contribution of national mandatory regulations. The joint venture huf further increased the TPMS market share, and the company aims to achieve the top three global TPMS; 2.

Increased research and development of automotive electronic control systems and internal high-pressure molding technologies, 360-degree look around new products cut into high-quality vehicle customers such as Geely, new smart driving products released (77G and 24G millimeter-wave radar), the expected differences between the country ‘s six sensors; 3.

The company is the Tesla industrial chain (supplying Tesla TPMS through the mainland); 4.

The trade war has eased the suppression of exhaust pipe and valve business.
We expect the company’s EPS to be 18/19/20 respectively.

04/1.

51/1.

75 yuan, corresponding to 25 for PE.

8/17.

9/15.

4x, which belongs to the current estimated automotive electronic standard.

Considering that the company’s intelligent driving products have progressed more than expected and the trade war has eased the pressure on the company’s main business, we upgrade the rating and upgrade the overweight rating to the buy rating, and recommend buy.

Risk warning: domestic car sales are lower than expected, China-US trade war risks