Kotei Informatics (301221 CH) is a comprehensive provider of automotive software solutions, with its products and services covering core aspects of intelligent connected vehicles (ICVs), including intelligent cabins, electric control, and driving. The company collaborates with leading automotive electronics manufacturers to enhance its software development capabilities and expand its product line. We expect its revenue for 2021E/2022E/2023E to be RMB437/RMB5.95/RMB8.22 billion, with EPS of RMB0.87/RMB1.28/RMB1.77. Our target price of RMB84.37 is based on a 66x 2022E P/E (Wind's average P/E for its peer group is 66x). We recommend buying. The company has been collaborating with leading manufacturers and expanding its product line rapidly. Kotei has been focusing on automotive software development and has been collaborating with leading manufacturers. In the intelligent cabin field, it collaborates with leading automotive electronics manufacturers such as Faurecia歌乐. Its products are gradually evolving towards autonomous driving and intelligent driving solutions, reflecting its enhanced product capabilities and continued potential for market expansion.
