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NavInfo (002405): Cooperating with China Re Property & Casualty Commercial Vehicle Networking to Open Data Monetization Exploration

Event: The company announced on the evening of September 24 that the subsidiary Zhonghuan Satellite (the operating entity of the company’s commercial vehicle networking business) and China Re Property & Casualty signed a “strategic cooperation memorandum.”By consensus, it was decided 杭州桑拿网 to carry out strategic cooperation at multiple levels and in various fields.

Opinion: The two sides will jointly develop smart IoT insurance, and Zhonghuan Satellite will start the exploration of data monetization.

China Reinsurance is the founder of the national reinsurance industry, the national team and the main force. In recent years, it has actively paid attention to and explored the innovative application of “insurance technology” in China’s reinsurance and insurance market.

The cooperation between Zhonghuan Satellite and China Re Property & Casualty Insurance will jointly develop smart IoT insurance. The specific contents include: 1) cooperation on data analysis of commercial vehicle networking data in the automotive, logistics and insurance industries; 2) exploration of logistics integrationNew business models for risk management and insurance; 3) Jointly develop and promote new insurance products.

Among them, Zhonghuan Satellite will take advantage of its core technical expertise to jointly mine data value with China Reinsurance, explore the channels for building a connected car platform and insurance, and deeply explore the needs of business scenarios.

Commercial vehicle networking has formed a complete big data capability.

At the Antique NavInfo 2019 New User Conference on September 17th, Zhonghuan Satellite officially announced its strategic goal: to build a “smart brain”, using technology to empower OEMs, car owners, drivers, logistics companies, and aftermarket service providers.Financial and insurance, carless carriers, and other upstream and downstream enterprises in the logistics industry.

According to Bi Lei, general manager of Zhonghuan, Zhonghuan Satellite has formed a complete big data capability.

At present, Zhonghuan serves eight mainstream commercial vehicle manufacturers in China, and the number of online vehicles has exceeded one million. The next stage will build a multi-scenario enabling platform based on the formed big data capabilities and output data value.

“The company’s bicycle value growth space is broad.

Faced with the wave of industrialization of automobiles and networked industries, the company’s layout has extended from “maps” to “cloud computing”, “autonomous driving decision algorithms”, “smart chips”, “location services” and other fields.

In addition to the increase in the value of bicycles brought by upgrading from traditional navigation maps to high-precision maps, the company’s value-added space for bicycles in the areas of connected cars and autonomous driving solutions is also worthy of recognition.

Investment suggestion: The company has successively obtained multiple heavyweight orders in the past month, and has continued to expand the industry “friend circle” and influence through multiple strategic cooperation agreements, which fully reflects the interests and strength of industry leaders.

We are very optimistic about 无锡桑拿网 the company’s strategic prospects for building a “smart car brain” and its industry competitiveness. It is expected that the company’s EPS in 2019 and 2020 will be zero.

22, 0.

32 yuan, maintain Buy-A rating, 12-month target price of 22 yuan.

Risk reminder: The development of innovative business is worse than expected, and the intensified competition in the industry leads to a reduction in gross profit margin.