\u3000\u3000 Hangzhou Hikvision Digital Technology Co.Ltd(002415) (002415)
Event: the company issued a performance express, with an operating revenue of 81.301 billion yuan in 2021, a year-on-year increase of 28.03%; The net profit was 16.784 billion yuan, a year-on-year increase of 25.39%. The operating revenue of 2021q4 single quarter performance express was 25.672 billion yuan, a year-on-year increase of 19.5% and a month on month increase of 18.16%; The net profit in a single quarter was 5.818 billion yuan, an increase of 17.63% year-on-year and 29.75% month on month; Meet expectations.
Under the pressure of economic growth, the stability advantage of the company is prominent. The company has rich product lines, diversified business groups and high-quality customer resources. The overall business of the company shows the characteristics of stable growth. Under the pressure of China's economic growth, the government's counter cyclical adjustment is expected to increase fiscal expenditure and support the company's Chinese business. At the same time, the company's overseas business expansion is smooth, the impact of the epidemic is gradually reduced, and overseas is expected to achieve rapid growth. Innovate business, create a new growth curve and further improve the stability of the company. The innovative business realized an operating revenue of 9.24 billion yuan in the first three quarters of 2021, with a year-on-year increase of 87%. Smart home business and Siasun Robot&Automation Co.Ltd(300024) business are developing rapidly, and the proportion of innovative business income is increasing, which has become an increasingly important growth source of the company.
Under the general trend of intelligence, technology layout + business precipitation stabilize the leading position of the company. In recent years, the company has unified the software R & D system and standardized the hardware R & D process. The software and hardware product development has entered a virtuous interactive cyclic iterative process, and the leading position has become more and more stable. The company's software and hardware are integrated and mutually supported. Software demand drives hardware R & D, hardware capability drives software R & D, cloud edge integration, material information integration and digital intelligence integration better meet the needs of different customers and different application scenarios, and the business is gradually deposited.
Video IOT ushered in a growth period, and the security leader broke away from the traditional label. Since 2016, the company's underlying capabilities have been continuously improved. The cloud edge integration of computing architecture, the material information integration of data architecture, software component development and algorithms have been supported by AI open platform, and the company's middle office capabilities have been gradually established. The transformation of traditional security has been accelerated to the direction of video IOT, the industry boundary has been broken, the industry space is increasing, and new application scenarios can support the company's long-term and rapid development in the future.
The grant of restricted stock plan is completed, and the assessment objectives demonstrate the company's confidence in development. The company issued the draft restricted stock plan and assessed that the return on net assets in 23-25 years is not less than 20% and the compound growth rate of operating income is not less than 15%, indicating the management's confidence in the company's long-term growth. The incentive plan has been granted, with 9738 incentive objects, accounting for 23.36% of the total number of the company at the end of 2020, and the number of shares granted accounts for 1.04% of the total share capital. It has a wide coverage, strong incentive and deep binding on the interests of employees.
Investment suggestion: we continue to be optimistic about the market prospect of the company as a global security leader and the growth potential of innovative business. According to the performance express, we raised the net profit for 21 years from 16.7 to 16.8 billion yuan, maintained the net profit for 22-23 years of 19.5 / 23 billion yuan, corresponding to pe26x / 23x / 19x, and maintained the "buy in" rating.
Risk tip: the risk of cyclical fluctuation of government investment, the risk of Sino US trade friction, and the risk of intensified competition caused by the intervention of Internet enterprises.
