[Click eStock] "Thinkware Supplies BMW... Overseas Sales Expansion Expected"

[Asia Economy Reporter Hyunseok Yoo] Hanyang Securities analyzed on the 12th that Tingkware's global sales growth will accelerate as it signed a supply contract with BMW headquarters. No investment opinion or target price was presented.

Tingkware operates mobility businesses such as black boxes and map platforms. In the case of black boxes, it holds the No. 1 market share in Korea, and the sales proportion is also the highest at 73%.

Hanyang Securities expected black boxes to drive Tingkware's performance. Kim Yongho, a researcher at Hanyang Securities, said, "Attention should be paid to exports, which have continued high growth every year," adding, "Tingkware exports black boxes to 23 countries including Japan and North America, and overseas sales have grown at an average annual rate of +64.4% over the past six years, with the proportion expanding from 2.5% to 24.5%."

Along with this, it was forecasted that exports will expand based on product competitiveness amid the trend of mandatory safety driving devices in major global countries. He explained, "A strong driver of export growth is the supply of black boxes to BMW, which started this year," and added, "Tingkware signed a 23.7 billion KRW black box supply contract with BMW headquarters in December last year, and the contract runs until November this year, so the proportion of overseas sales will greatly expand this year."

He said, "The direct contract with BMW headquarters is also positive in terms of reference for expanding the B2B business," and added, "Tingkware's black boxes will be installed in BMW vehicles and sequentially supplied to a total of 79 countries by 2025, so additional orders are expected." He emphasized, "The above contract amount is based on global shipments excluding China, so if additional orders for China are placed, the upside for this year's performance will increase, and growth acceleration is expected overseas, where growth potential is higher compared to the slowed domestic market."

Along with this, business areas are expected to expand with autonomous driving. Tingkware is expanding new businesses based on map data accumulated through the navigation business since 2003. He analyzed, "The map data business has a high entry barrier because it requires a lot of cost and time to build," adding, "Through its subsidiary ‘Inavi Systems,’ it provides map services to app-based taxi platforms and delivery agencies, and also supplies map data to autonomous driving development company ‘42dot’."

He said, "42dot, which Hyundai Motor Group is a shareholder of, is a company leading the domestic autonomous driving market, starting level 4 autonomous driving transportation services in Sangam, Seoul from this year," and emphasized, "Tingkware is developing an autonomous driving platform, and last year, together with Inavi Systems, it was selected for a government-led national project consortium for level 4 autonomous vehicle platform technology development, so benefits are expected as automakers begin full-scale preparations for level 4 autonomous vehicle commercialization."