In addition to traditional stores, home shopping, where is your next shopping location? The answer may be in the car.
Recently, a cooperation framework agreement for China's first car shopping platform initiated and established by four companies, China Unicom, Qiming Information (002232.SZ), UnionPay and Lianhua, was formally signed. In the near future, perhaps we will be able to buy our own gratified items through the 3G network while driving.
Among them, Qiming Information, as a leading company in the automotive IT industry, has received much attention since it was listed. “The competition in the automotive electronics industry is very fierce, and the story is generally about import substitution. If we can really achieve substitution, then there will be a huge market space with price advantage.†A public fund manager in Shanghai told reporters.
Car networking to find profit model
“In-vehicle shopping platform is actually not difficult to understand. In addition to the navigation function, the car’s navigation system can also be used for online shopping and placing orders on the screen while the vehicle is at idle, and shopping can be easily completed in the car. "The company said.
The reporter learned that the "car shopping platform" is also called "car online shopping," as a brand-new web application model that allows users to integrate car information, mobile payment, supermarket shopping, Internet, and mobile communication services. Cars complete the real-life supermarket shopping items.
Is this "car online shopping" one of the ways to realize "car networking"?
“It can be said that just as the Internet connects everyone individually, the future trend of the car will also be to connect individual individuals into a network, which is the car network.†Consulting Manager, Automotive and Transportation Department, Frost & Sullivan Consulting Huang Sihua said.
The company said that its main business mainly includes four parts, of which the automotive electronics business and car networking will have some intersection.
It is understood that the automotive electronics business is the business focus of the company's future development.
The 2010 annual report announced by the company recently showed that last year, the automotive electronics business realized sales revenue of 200 million yuan, an increase of 79.22% year-on-year, but it only accounted for 12.98% of the main revenue.
Although online shopping for cars may sound fresh, industry insiders say it is not technically difficult to achieve.
“Technically speaking it is not difficult, and at the same time there may be some limitations to this service. For example, people’s time in the car is relatively limited. In addition, the products provided by the shopping platform may not be so rich, and there is the navigation screen. The size of the shopping interface may still be relatively small and may not be very good from the user experience, Huang Sihua believes.
At the same time, he said that car networking is in line with future industry trends. The key is whether Qiming Information can explore a profit model. “For example, we can see a lot of advertisements on taxi car screens. Assuming that Lianhua can launch some advertisements on Qiming’s information platform in the future, then it can also expand marketing revenue for companies.â€
According to the company, the on-board shopping platform has just begun to be implemented, and details of specific cooperation have not yet been confirmed.
The above-mentioned public fund manager stated that the Internet of Vehicles is a branch of the Internet of Things. From a technical point of view, it is currently being gradually improved. The key to the company's specific decision is whether or not it can find a way to realize income.
Front loading product capacity will be released
Many “car owners†have such experience. If the car does not have a navigation device, then it costs hundreds of dollars to buy one, which is often much cheaper than the original car navigation device.
It is understood that this kind of self-purchased navigator is just a kind of “back-loaded vehicle-mounted electronic productâ€, which mainly refers to the electronic products that are installed on the vehicle after it leaves the factory, and is not an integral part of the original car itself. The "pre-installed vehicle-mounted electronic product" refers to the electronic product that is installed on the vehicle before it leaves the factory and is an integral part of the original vehicle itself.
"At present, there are many navigation products on the market. Domestic companies generally produce aftermarket navigation products. Our company is the only company in the country that can produce front-load navigation products," the company said.
Wu Tieshan, vice president of the company, stated that the diversity and convenience of the services provided by the two companies are different. In addition, the front loading products are required to be compatible with the entire vehicle synchronously, and the technical requirements for the navigation products are much higher than those of the aftermarket products.
"The front-loading navigator and the rear-loading navigator may look similar, but they are actually two concepts. The front-loading product is built strictly in accordance with the entire vehicle bus protocol, which is equivalent to the vehicle's information system, in addition to navigation and entertainment. In addition to its function, it can also provide feedback on the operation of the vehicle,†the company said.
It is understood that the company currently has relatively small sales in the front loading market. The main reason is that the new models for various products developed by FAW's own brand Pentium platform and the new Hongqi platform have not yet been released.
“The front loading products were barely reflected in the company's annual report last year. We still have to wait until the new vehicles of FAW-Volkswagen are listed before they can be listed. We currently expect to be listed in the middle of this year or the second half of the year,†the company said.
In addition to independent brands, the company's products developed for the FAW-Volkswagen joint venture brand platform are still waiting for the verification of the German public.
“We sent the joint-brand front-end navigation products to German Volkswagen for certification in early 2010. The certification cycle is generally about three years, and we are currently tracking the progress of certification,†the company said.
Analyst Securities analyst Hou Li believes that once it passes the certification, the company's products will compete with the foreign navigation brands currently in a monopoly position by virtue of its obvious cost-performance advantage. Driven by the demonstration effect of the German Volkswagen, other car manufacturers may also adopt company products in the future.
Yin Yinuo Wang Yinguo analyst believes that the automotive electronics business after years of accumulation, has gradually entered the period of heavy volume growth. In 2010, the company's post-installed products achieved rapid growth. It is expected that the pre-installed automotive electronics business will become an important growth point for the company since 2011.
In fact, judging from the current situation, domestic automotive electronics manufacturers and foreign automotive electronics manufacturers still have a long way to go. Of the top ten companies in the domestic automotive electronics market in 2008, only Shenzhen Hangsheng was a domestic company whose sales revenue was still less than 1/10 of that of German mainland companies in the Chinese market. Foreign-funded enterprises and their joint ventures account for more than 70% of the domestic automotive electronics market.
“Automotive electronics is certainly good from the industry trend, but the competition is fierce. Most high-end automotive electronics are foreign-funded enterprises. If Qiming Information can complete some import substitution, then it will be able to obtain a higher gross margin. In addition, if the company If you can enter a joint venture company, then the increase in sales will be substantial, because the stock market for automobiles is very large." The above-mentioned public fund manager said.
Backed by a large shareholder, "Better to cool off"
“The biggest advantage of the company may lie in the background of FAW, because the promotion of all technologies in the automotive industry always needs support from the depot.†Huang Sihua said. According to statistics, the majority shareholder of Qiming Information is China FAW Group Corporation, which holds 48.67% of the company’s total share capital.
According to the company's annual report, among the top ten tradable shareholders of the company, 9 are fund companies. Among them, Yinhua Core Value Fund, Taida Hongli Market Optimisation Fund, and China Advantage Growth Fund are among them.
Shenyin Wanguo believes that after many years of accumulation, the company’s automotive electronics business has entered a period of heavy volume growth and has sufficient reserves of new energy automotive electronics. Both the recent and long-term growth are guaranteed. It is expected that the company's 2011 and 2012 EPS will be 0.60 and 0.85 yuan, respectively, and maintain a "buy" rating.
As of March 29, a total of 69 institutions had made predictions on Qiming Information's 2011 annual results. The average forecasted profit was 185 million yuan, an increase of 105.14% over the previous year. The average forecasted earnings per share was 0.64 yuan.
Jiuding Desheng analyst Xiao Yuhang believes that the company’s current technical indicators have run to a low level and may start a rebound at any time.
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