2021-11-26 Luo Yunyang of Xinda Securities Co., Ltd. conducted a research on China Cochuangda and released the research report "depth report: China Kechuangda: the world's leading platform intelligent operating system service provider". The current share price is 149.66 yuan.

Zhongke Chuangda (300496)
Based on the core technology of the operating system, comprehensive layout in many fields. The company provides full-stack software services with the operating system as the core, covering intelligent software, intelligent cars and intelligent Internet of things, with an extensive customer base, Samsung, XIAOMI, VIVO and other manufacturers in the field of mobile phones, and in the chip field carries out in-depth cooperation with Qualcomm Inc and Spreadtrum, etc., and the automobile business covers more than 200 mainframe factories. From 2015 to 2020, the company's revenue and profit grew at a compound rate of 33.7% and 30.5% respectively, maintaining rapid growth.
In the era of software-defined cars, the cockpit domain + driving domain + Kanzi troika generates power at the same time. In the era of software-defined automobile, the number of automobile software code, the value of bicycle software and the cost of software are increasing rapidly. The traditional automobile distributed ECU architecture can no longer meet the needs of automobile intelligence, and is gradually moving towards domain controller EE architecture and central centralized EE architecture. In terms of cockpit domain, the company has in-depth cooperation with Qualcomm Inc, which has the largest market share, to create a cockpit ecology; in the driving domain, Qualcomm Inc ride platform will officially carry mass-produced models in 2022, and the acquisition of Weininger to enhance self-driving capability, the company will fully benefit from the establishment of Qualcomm Inc ecology; the company has the world's leading HMI design software Kanzi, the global market share has exceeded 50%. The company has made a lot of forward-looking layout in the automobile field through the acquisition of rightware and other ways, and will continue to enjoy the dividend of the rapid development of the automobile industry in the future.
The downstream demand is strong, and the strong growth momentum of the Internet of things continues unabated. The company's Internet of things business is based on the TurboX platform and provides an integrated solution of core computing modules, operating systems, algorithms and ADK. From the downstream demand side, the market for floor-sweeping robots is unabated, and middle-and high-end service robots and industrial robots are developing steadily; Internet giants such as Facebook Inc and Microsoft Corp have laid out meta-universe one after another, detonating the AR/VR market; during the epidemic, video conferencing software has developed vigorously, self-driving technology has also promoted the penetration of vehicle cameras, and there is a broad space for camera products. Consumer Internet of things downstream demand is strong, industrial Internet of things is quietly rising, the company's Internet of things business has a broad market space for long-term development.
Coverage for the first time, giving a "buy" rating: we believe that under the trend of the Internet of everything, the company has a strong technological advantage, connecting operating systems, chips and terminal vendors, and playing a unique role in the industry chain. can adapt the operating system, chip and terminal equipment, the card position advantage is obvious. It is estimated that the EPS from 2021 to 2023 will be 1.56 and 2.19, respectively, and the corresponding PE will be 3.00 times as much as that of 96-68-50. We refer to the industry to give the company a PE of 85 times and 66 times respectively in 22-23, corresponding to a market capitalization of 7.95-84.5 billion yuan, covering the "buy" rating for the first time.
Risk tips: 1. The market competition intensifies; 2. The shortage of chips is becoming more and more serious. Technological research and development is not as expected.

A total of 28 agencies have rated the stock in the last 90 days, including 23 buy ratings and 5 overweight ratings; the average institutional target price in the past 90 days is 163.45; according to the Securities Star valuation analysis tool, China Cochuangda (300496) has a good company rating of 3.5 stars, a good price rating of 2 stars and a comprehensive valuation rating of 2.5 stars. (rating range: 1-5 stars, up to 5 stars)