1. Basic information of the company
Zhongke Chuangda Software focuses on the key technologies of artificial intelligence, intelligent software, intelligent networked cars, intelligent Internet of Things and other fields for productization and technological innovation. The main products and services provided by the company mainly include software development services, joint laboratories, software products and integrated software and hardware solutions.
at present, the company has more than 1, independent research and development technology patents and software copyrights, and there are about 3,8 employees worldwide, of which R&D personnel account for nearly 9%.
In the era of smart phones, the company seized the opportunity to provide secondary development of Android system for mobile phone manufacturers, and tied chip companies such as Qualcomm to gain a good customer base and accumulated a lot of technologies at the bottom of smart OS.
in addition to the direction of smart cars, the company's layout in smart cameras, smart homes and other fields will also maintain sustained prosperity.
smart cars have entered a period of rapid development, and the company has made a forward-looking layout, successively acquiring Rightware in Finland and MM solutions in Bulgaria. Rightware has benchmark projects such as Audi intelligent dashboard, which enables the company to successfully enter the intelligent cockpit industry, while MM solutions is a computer vision technology enterprise, which enables the company to quickly cut into the ADAS field.
the proportion of automobile business income in the company's business income has increased year by year, from 5.45% in 216 to 29.31% in 22. The compound annual growth rate is as high as 12%.
2. Analysis of core products
The company is committed to building an ecological chain of intelligent Internet of Things industry, and its main businesses include intelligent networked cars, smart phones and intelligent Internet of Things.
at the beginning of its establishment, the company focused on customized development of operating system, mainly engaged in the development of Linux system products and related technical services for mobile intelligent terminals, and then expanded from Linux system to Android system, and began to cooperate with mobile chip manufacturers Qualcomm and Flextronics.
after listing, it only extends from smart phones to smart car networking, and at the same time, it further moves from a single intelligent terminal to a multi-scene intelligent terminal, and develops intelligent Internet of Things services represented by robots, drones, AR/VR and smart cameras.
in 219, the company focused on intelligent networked vehicles, and has provided services to more than 4 OEMs in the automotive field. At the same time, the company actively deployed the Internet of Things platform, and the downstream applications such as sweeping robots and drones continued to explode.
3. Market prospect
Smart cars are an important landing scene of artificial intelligence, and they are also a track with sustained high prosperity. The company's automobile business grew rapidly, with a compound growth rate of 14.8% in 215-219, and the proportion of revenue continued to increase; In 22, the cooperation between the company and major car manufacturers was further deepened. At the same time, the intelligent cockpit continued to iterate and launched version 4.5, and cooperated with Didi to develop intelligent and safe driving products, and the products continued to be iteratively updated. In the future, with the increasing penetration rate of smart cockpit in low-end models, the company's business is expected to continue to grow.
In 216, the company launched the SoM(System on Mudule) product with the integration of "core board+operating system+core algorithm", focusing on four scenes of robots, smart cameras, VR/AR and drones, with a compound revenue growth rate of 93.5% from 215 to 219. With the gradual improvement of the 5G infrastructure, the downstream application scenarios of the Internet of Things have developed rapidly, and the company's layout is perfect and has strong competitiveness, and the rapid growth in the future is expected.
in 217, the company released the first intelligent cabin solution, and then the company's products continued to iterate. At present, the intelligent cabin version 4.5 has been launched. In 22, major car companies have added more smart cars, and the smart car industry is ready to go. The depth and breadth of cooperation between the company and Guangzhou Automobile, SAIC, FAW, Ideal, Volkswagen, GM, Toyota and other head car factories have improved. In March 22, the company established a joint innovation center in cooperation with Guangzhou Automobile. In June 22, the company cooperated with Didi to release the intelligent and safe driving scheme of DMS and ADAS.
It can be seen from the company's promotion layout that the company has deeply laid out the downstream application scenarios of 5G, and during the promotion of 5G applications, all businesses of Zhongke Chuangda can continue to benefit.
4. Comparative analysis of the same industry
Zhongke Chuangda is the world's leading provider of intelligent operating system technology and products, covering three major tracks: smart phones, smart cars and the Internet of Things. Comparable company Desai Siwei is the leader in the field of automotive electronics in China. However, there is little overlap between the two businesses. Zhongke Chuangda is mainly engaged in automotive intelligent software business, while Desai Siwei is engaged in intelligent cockpit hardware business.
At present, in terms of intelligent operating system technology and products, competitors are mainly Chengmai Technology, Bosi Communication, Instant Link Software, Overlay, FUJISOFT, Sasken, BSQUARE, Sky, etc., but Zhongke Chuangda has formed an absolute leader, strong technological innovation ability, stable customer base and maintained stable cooperative relations with world-renowned manufacturers. Zhongke Chuangda is expected to win in the intelligent route of automobiles.
5. Analysis of shareholders
By the end of 221, the top ten current shareholders of the company showed that the social security 11 portfolio and social security 46 portfolio remained unchanged, with foreign capital increasing their positions and E Fund reducing their positions and withdrawing from the top ten current shareholders, with little overall change.
At present, there are 135 institutions holding shares in Zhongke Chuangda, and institutional positions account for a relatively high proportion.
6. Capital operation
Since 215, Zhongke Chuangda has gradually developed its smart car business, and for three consecutive years, it has basically maintained the pace of 1-2 acquisitions every year. In 216, it acquired domestic EPSynopsis and Huichi Technology, which gained Huichi Technology's strong technical accumulation and R&D strength in the information and entertainment system in the automobile front-loading market, as well as EPSynopsis's extensive market share and enhanced IVI technical capabilities in vehicles.
in 217, it acquired Rightware； of Finland; Headquartered in Finland, Rightware is the world's leading supplier of automotive user interface design tools and embedded graphics engine software products.
In 218, it acquired the Bulgarian company MM Solution AD. MM solutions AD is a leading mobile and industrial graphics and image technology enterprise with 16 years of in-depth experience in graphics and image systems and architecture. The acquisition has improved the company's image vision research and development capabilities, overall solutions and product research and development capabilities. The company's competitive position in the global embedded vision and artificial intelligence fields has been enhanced, which has helped the development of intelligent networked vehicles, intelligent vision and intelligent Internet of Things services.
7. Management analysis
Zhao Hongfei, the chairman of the board of directors, has a technical background and many years of project merger and acquisition. From 1998 to 26, he served as an engineer and project manager of Software Research Institute Co., Ltd., Chinese Academy of Sciences; From 26 to 28, he served as deputy general manager of overseas business department of Beijing Beida Jade Bird Commercial Information System Co., Ltd.
At present, the company has about 3,8 employees around the world, of which R&D personnel account for nearly 9%.
on August 14th, 22, the company issued the restricted stock incentive plan for 22, and the incentive staff included Zou Pengcheng, vice chairman, Wang Huanxin, director and 212 middle managers, with a wide range of incentives. The performance appraisal of this incentive plan lasts for four years, and the growth rate of net profit in 22, 221, 222 and 223 is not less than 7%, 8%, 9% and 1% respectively, so that equity incentive is conducive to team stability and retention of core talents.
ii. financial analysis
1. revenue analysis
in the past three years, the company's revenue has grown steadily, and the growth rate has been continuously improved. the growth rate of non-net profit deduction is much higher than the growth rate of revenue, and the benefits are good. In the case of global epidemic in 22, the company still maintained a high growth rate.
2. Cash flow
Since the company went public, the cash flow has been stable as a whole. In 22, the cash flow increased substantially, mainly due to the fixed cash income. In 22, the total fixed amount was 1.7 billion yuan, and the additional price was 82.36 yuan.
3. solvency
after listing, the company's current ratio and quick ratio have remained between 1 and 2, indicating that the company has strong short-term solvency and high capital utilization rate. The reason for the sharp increase in the current ratio in 22 is the increase in fixed funds and the sharp increase in short-term current assets. After removing this part of assets, the company's current ratio remains at a good level.
4. Analysis of profitability
Since listing, the gross profit margin, profit margin and net profit margin of the company have increased year by year, and the company has strong profitability.
5. Historical dividend situation
Zhongke Chuangda's dividend amount is not high, and the dividend yield is low. The main reason is that Zhongke Chuangda is currently a high-speed growth enterprise, with high capital utilization rate and low dividends.
6. R&D investment
Since the company went public, R&D investment has increased year by year, accounting for more than 18% of revenue in the past three years.
7. Three fees
Since the company went public, the three fees have been stable and there has been no significant change.
8. Analysis of financial anti-riot thunder
In 3-5 years, there was an overall convergence between operating income, net profit-net cash flow from operating activities and turnover rate of accounts receivable, and no abnormal fluctuation was found.
There is no black swan in 3-5 years, and the investor interaction efficiency is high.
the number of in-depth research reports in the past year is 1.
the gross profit margin is stable in 3-5 years, and there is no obvious deviation compared with companies in the same industry.
in the past three years, monetary funds have been stable, the company's debt ratio is low, and there has been no significant change in liabilities, and monetary funds and short-term liabilities have not risen in the same direction.
the goodwill is 429 million.
analysis of invisible liabilities: lawsuit , guarantee billion yuan.
cash flow and profit growth rate match, cash flow is stable and accounts receivable are stable.
there was no frequent change of audit offices.
III. Valuation Analysis
Due to its good fundamentals and rapid performance growth, the company has been getting a good valuation since its listing. Recently, its performance was announced, and its share price followed the index, so PE-TTM has fallen back to the median valuation in the past three years.
according to the company's performance, the current PEG of Zhongke Chuangda is .93, which is lower than 1. PEG has been around 1 for nearly three years, and the valuation is reasonable.
according to the net cash flow discount model, the converted PE of Zhongke Chuangda is 73.5, which is lower than the current PE-TTM. However, considering that Zhongke Chuangda is a high-growth stock, it is normal to have a low discounted valuation.
compared with the global automotive intelligent cockpit enterprises, Zhongke Chuangda has the highest market value in the world. Although the valuation level is slightly higher, considering the high growth rate of Zhongke Chuangda's performance and the short-term PE-TTM has dropped, with the sustained high growth in the future, the probability of further decline in valuation is low, and the short-term share price is reasonable.
from a technical point of view, zhongke chuangda's recent sharp decline is related to the collapse of the market holding stocks, but zhongke chuangda itself is a high-quality track stock with high growth and prosperity, and it is a real growth stock. Recently, following the market decline, the stock price is expected to fall below the median valuation, which belongs to the wrong killing of growth stocks.
zhongke chuangda is optimistic in the medium and long term, and the short-term strong support level is in the range of 96-13. In this range, the valuation is low and the support is strong, and the short-term decline will form an excellent operation opportunity.