Hangzhou Hikvision Digital Technology Co.Ltd(002415) (002415)
event:
On the evening of December 30, 2021, the company issued the suggestive announcement on Authorizing the management of the company to start the preparatory work for the domestic listing of the spin off subsidiary Hangzhou Haikang Siasun Robot&Automation Co.Ltd(300024) Technology Co., Ltd.
comment:
Haikang Siasun Robot&Automation Co.Ltd(300024) business has developed rapidly in recent years, and the company announced the start of spin off to domestic listing
According to the announcement, based on the overall strategic layout of the company and in combination with the business development needs of Haikang Siasun Robot&Automation Co.Ltd(300024) , the company started the preliminary preparations for the spin off of Haikang Siasun Robot&Automation Co.Ltd(300024) to domestic listing. Siasun Robot&Automation Co.Ltd(300024) business, as a very important part of innovative business, has a particularly bright development speed. From 2019 to 2020 and the first half of 2021, the company’s Siasun Robot&Automation Co.Ltd(300024) business revenue was RMB 814 million, RMB 1359 million and RMB 1220 million respectively, with a year-on-year increase of 23.88%, 66.91% and 124.83%, accounting for 1.41%, 2.14% and 3.60% of the company’s total operating revenue. We believe that China’s manufacturing industry is rapidly moving towards the era of intelligent manufacturing. As a provider of mobile Siasun Robot&Automation Co.Ltd(300024) and machine vision products, Haikang Siasun Robot&Automation Co.Ltd(300024) is on a high-quality track with rapid development. Haikang Siasun Robot&Automation Co.Ltd(300024) business has inherited the advantages accumulated by Haikang in software and hardware, algorithms and marketing system over the years, and has become one of the important suppliers in the industry. This spin off will help improve the efficiency of resource allocation with the help of the capital market, so as to further promote the rapid development of Haikang Siasun Robot&Automation Co.Ltd(300024) and consolidate its leading position in the industry.
The company’s innovative business echelon has been basically formed, and the division of fluorite network is advancing in an orderly manner
At present, the company has expanded smart home, Siasun Robot&Automation Co.Ltd(300024) , automotive electronics, memory, infrared vision equipment, fire protection solutions, intelligent detection, etc., and the development echelon of innovative business has been basically formed. In recent years, the company’s innovative business has continued to grow rapidly. In the first three quarters of 2021, the company achieved a revenue of 9.24 billion yuan, a year-on-year increase of 88.6%, accounting for 16.6% of the company’s revenue as a whole. We believe that the rapid development of innovative business is expected to become a strong driving force for the development of the company and continue to open the space for medium and long-term development. At the beginning of 2021, the company issued the plan for the spin off of its subsidiary Hangzhou fluorite Network Co., Ltd. to be listed on the science and innovation board, announcing that fluorite network will be listed independently as a platform for the company’s subordinate smart home and cloud platform service business.
The company revised the equity incentive draft to bind core employees to escort long-term development
In October 2021, the company issued a new round of draft equity incentive plan (revised later), setting the unlocking conditions as compound growth rate of revenue not less than 15% and roe not less than 20% in the previous year. We believe that the incentive scheme covers a wide range, has many performance assessment levels, and the assessment objectives are in line with the company’s stable business strategy. It is expected to bind the company’s core employees, fully mobilize the team’s enthusiasm and escort the company’s long-term development.
Investment advice and profit forecast
The company provides global users with intelligent Internet of things solutions and big data services with video as the core. It has comprehensive advantages in technology, products and solutions, and has broad growth space in the future. It is estimated that the operating revenue of the company from 2021 to 2023 will be 78.932 billion yuan, 93.946 billion yuan and 109.309 billion yuan, the net profit attributable to the parent company will be 17.057 billion yuan, 20.239 billion yuan and 23.347 billion yuan, the EPS will be 183, 2.17 and 2.50 yuan / share, and the corresponding PE will be 28.66, 24.15 and 20.94 times. Considering: EBG business has large industrial space and maintains rapid growth; The innovative business is developing rapidly, and Haikang Siasun Robot&Automation Co.Ltd(300024) plans to be split and listed; In the past five years, the company’s PE has mainly operated at 20-50 times and other factors, giving the company 40 times the target PE in 2022, with the corresponding target price of 86.80 yuan. Maintain the “buy” rating.
Risk statement
Covid-19 recurrent pneumonia; The demand release of enterprise digital transformation is less than expected; Overseas market expansion is less than expected; The development of innovative business is less than expected; Industry competition intensifies.
