\u3000\u3000 Hangzhou Hikvision Digital Technology Co.Ltd(002415) (002415)
Event: on the evening of February 22, the company released its annual performance express for 2021. It is estimated that the annual operating revenue in 2021 will reach 81.301 billion yuan, a year-on-year increase of 28.03%; The net profit attributable to the parent company was 16.784 billion yuan, a year-on-year increase of 25.39%; The net profit deducted from non parent company was 16.429 billion yuan, with a year-on-year increase of 28.29%.
The revenue and profit continued to rise, and the company operated steadily: according to the express data, the revenue of Q4 in a single quarter was 25.672 billion yuan, yoy + 19.50%, QoQ + 18.16%; The net profit attributable to the parent company was 5.818 billion yuan, yoy + 17.63%, QoQ + 29.75%. Compared with the company, in the first three quarters of 2021, the year-on-year growth rate of revenue in a single quarter was 48.36% / 34.17% / 22.41%, and the year-on-year growth rate of net profit attributable to the parent company in a single quarter was 44.99% / 37.86% / 17.54% respectively. The downward trend of performance growth slowed down gradually and was basically flat to Q4. With the reduction of disturbance factors of the epidemic, the slowdown of supply chain tension and the gradual improvement of prosperity in the first half of the year, we believe that the company's 22-year performance is expected to usher in an upward trend. The main reason for the company's stable operation is that it follows the high inventory strategy to ensure the safety of the supply chain. Driven by technological innovation, the company increased R & D investment, continued to strengthen the dominant position of video products, intelligently upgraded non video products, built large-scale system software support capacity, improved the technical system, and further improved the company's comprehensive competitiveness.
Equity incentive shows confidence and EBG explores new opportunities: according to the company's announcement, the granting of the company's restricted stock plan will be completed in February 2022. The incentive plan sets the unlocking conditions as roe not less than 20% and four-year compound growth rate of revenue not less than 15%. In the macro environment of the overall cycle downward, it shows the management's confidence in the company's operating ability and business development planning. According to the record of investor relations, the company's EBG business covers five aspects: energy, culture, education and health, finance, industrial and commercial enterprises and intelligent buildings, and the performance growth rate remains above 20%, maintaining balance and stability. Through in-depth exploration of EBG business, the company grasps the opportunities of new and old energy conversion, financial technology development, carbon neutralization and carbon peak, seeks a new business growth curve, and lays a deep foundation in the enterprise digital transformation market.
Building new impetus for innovative business and steadily promoting the spin off and listing of fluorite and Haikang Siasun Robot&Automation Co.Ltd(300024) : the company actively develops innovative business, including fluorite, Siasun Robot&Automation Co.Ltd(300024) , automotive electronics, medical electronics, thermal imaging, storage and other businesses. According to the company's announcement, at the end of December 2021, the company announced that it would start the preparatory work for the spin off of Haikang Siasun Robot&Automation Co.Ltd(300024) to domestic listing. Haikang Siasun Robot&Automation Co.Ltd(300024) focuses on technologies such as visual perception, AI and navigation control, and its performance has increased significantly. According to the company's announcement, the fluorite network under the company has received the listing acceptance notice of science and Innovation Board issued by Shanghai Stock Exchange on December 13, 2021. Fluorite network is a global Internet of things cloud platform and smart home enterprise. It provides smart home products and services based on visual interaction for consumers and users in smart home scenarios; For industry customers, provide open cloud platform services for managing Internet of things devices. The spin off of fluorite network is conducive to further improve its high R & D capacity and expand its business layout, fully release its internal value and thicken the company's profits. Innovation business, represented by Siasun Robot&Automation Co.Ltd(300024) and fluorite, is growing rapidly under the background of Haikang's technical support and market accumulation, enabling each other to make collaborative innovation, which is expected to provide long-term driving force for performance growth in the future.
Investment suggestion: we estimate that the company's operating revenue from 2021 to 2023 will be 81.437/97.814/116.115 billion yuan respectively, the net profit attributable to the parent company will be 17.036/199.91/23.222 billion yuan, the EPS will be 1.81, 2.12 and 2.46 yuan / share, and the corresponding PE will be 27 / 23 / 20 times, maintaining the investment rating of buy-a.
Risk warning: the risk of uncertainty in trade relations; The risk that the development of innovative business is not as expected; The risk that the demand of Chinese customers is less than expected; The risk that the progress of spin off listing is less than expected.
