Jin Yi Technology (002869) Company Comment: ETC’s New Year’s Fruitful Car Networking Business Is Worth Looking Forward

Jin Yi Technology (002869) Company Comment: ETC’s New Year’s Fruitful Car Networking Business Is Worth Looking Forward
Event: The company released a 2019 performance forecast, and it is expected to realize net profit attributable to mothers in 2019.01 million to 9.420,000 yuan, an increase of 3601 in ten years.77% to 4252.61%; Among them, the fourth quarter of 2019 is expected to achieve net profit attributable to mothers4.1.3 billion to 5.5.4 billion.Benefiting from the ETC industry outbreak, the company’s revenue and net profit are expected to achieve substantial growth in 2019. Investment summary: In 2019, the construction and issuance of the ETC industry has been completed, and the performance of the industry chain has ushered in a big explosion.Under the background of the comprehensive cancellation of toll stations at the provincial border of expressways, the vehicle-end and road-end businesses in the ETC industry have ushered in substantial growth.According to statistics from the Ministry of Transport, as of December 18, 2019, ETC customers nationwide gradually reached 1.9.2 billion, 100 of the total issued target.72%, over-fulfilled the task of ETC promotion and issuance; 2 of 29 online charging provinces.460,000 sets of ETC mast system construction and 4.The construction and reconstruction of 820,000 ETC lanes has been completed by the end of October.The ETC industry chain-related companies represented by companies such as Jinyi Technology are expected to usher in ultra-high-speed growth in 2019. Deeply tap the potential of ETC technology application, and the rich technical reserve is expected to usher in continuous gains.The company has deeply cultivated the field of intelligent transportation in highways and urban intelligent transportation for many years. Taking highway ETC as the starting point, it has dug deep into the development potential of intelligent integration of ETC terminals, intelligent parking, and vehicle-road coordination.In the context of the ETC market approaching the ceiling and the increase in the stock market, we are optimistic that Jin Yi Technology will make breakthroughs in the ETC pre-installation and smart parking directions: ETC pre-installation: conversion of ETC’s comprehensive coverage and related policies, and ETC installation has become a userJust needed, car front-loading and pre-loading are expected to become the consensus of OEMs.In terms of product 杭州桑拿网 form, ETC terminal product functions form a single road toll payment expectation of integrated driving records, traffic reporting, rearview mirrors and other functions, forming a stable source of complementary customers. Smart parking: ETC’s smart parking toll system based on early pilot applications has rich experience and mature solutions. ETC has tried to expand the application scenario to the parking lot payment field first, forming an important industry application of ETC. 2020 will become a key window for the automotive networking industry, and core equipment vendors are expected to benefit deeply.We believe that the various parts of the connected car industry chain are basically mature. After the 5G R16 standard freezes, the technical framework will explode. In order to consolidate the characteristics and advantages of 南京桑拿网 gradually leading the two breakthroughs in the transportation powerhouse and 5G, we will meet the challenges brought by the connected car as a cross industryThe competent authority is trying to promote the all-round development of the connected car industry chain with a more positive attitude.As a domestic first-class equipment and solution provider, Jinyi Technology has implemented benchmarking projects such as the “Shenzhen Futian Free Trade Zone Intelligent Driving Bus Demonstration Base”, “Guangzhou 5G Driving Vehicle Autonomous Driving and Vehicle-Road Cooperative Demonstration Area Construction Project” and other benchmark projects.The product sequence and strong design and implementation capabilities will promote deep benefits in the construction tide of the V2X industry in the future. Profit forecast and investment advice: We believe that the company is a leading domestic manufacturer and solution provider of connected vehicle equipment. It has obtained rich returns by deeply cultivating the ETC industry. It is optimistic that the company will continue to explore the application potential of ETC technology in the future, and look forward to the layout of V2X technology andProducts ushered in new harvest.We expect the company to achieve operating income of 48-2019.50/43.30/39.0 million yuan, net profit attributable to mother 8.73/6.01/4.66 ppm, corresponding to PE10x / 15x / 19x, for the first time coverage, giving an overweight rating. Risk Warning: The market share of the connected car business is lower than expected; the progress of research and development is lower than expected; product price fluctuations.