\u3000\u3 China Vanke Co.Ltd(000002) 415 Hangzhou Hikvision Digital Technology Co.Ltd(002415) )
Locate intelligent Internet of things + big data service + smart service provider.
Hangzhou Hikvision Digital Technology Co.Ltd(002415) is an intelligent Internet of things solution and big data service provider with video as the core. It provides services for users in the field of public services, enterprises and institutions, small and medium-sized enterprises and C-end users, and is committed to building a smart city and digital enterprise with cloud edge integration, content information integration and digital intelligence integration. Since its establishment, the company's income has increased steadily, with a 10-year compound growth rate of 33.22%, and has always been a leader in global security. In 2021, the national economy recovered, and Hangzhou Hikvision Digital Technology Co.Ltd(002415) annual operating revenue reached 81.3 billion yuan, an increase of 28.03% year-on-year; The net profit attributable to the parent company was 16.784 billion yuan, a year-on-year increase of 25.39%; The net profit after deducting non attributable assets was 16.429 billion yuan, a year-on-year increase of 28.29%.
The head effect of security is obvious, "Internet of things + AI" opens a new space for smart city and digital transformation
The security market has gradually entered a mature stage. In 2020, the global security market will reach US $315 billion and the global intelligent video surveillance market will reach US $22.6 billion; The market share of Haikang and Dahua increased to 25.14% and 12.84% respectively, and the pattern of two super powers represented by them was further deepened. The visual hardware of security equipment is one of the most accessible sensing ports in the era of Internet of things. With the increasingly extensive distribution of 5g base stations and the increasingly mature artificial intelligence technology, the rise of Internet of things is imminent. According to IDC's prediction, by 2025, China's Internet of things expenditure will reach US $306.98 billion, with a compound growth rate of about 13.4%; China's market share will increase to 25.9%, and the scale of the Internet of things market will rank first in the world.
The AI platform has been upgraded again, with comprehensive perception and integration of software and hardware, highlighting the advantages of intelligent security
Haikang products cover hardware products and software products. With intelligence as the line, it connects different product combinations to create various solutions to meet the needs of thousands of industries; Core advantages include soft and hard integration, cloud edge integration, material and information integration, digital intelligence integration, ecological empowerment, etc. At the hardware end, there are 19 types of products, and more than 27000 types of hardware equipment can be sold. The baseline is parallel to the customized products; Intelligent hardware product family layout node comprehensive perception + domain end scene intelligence + central intelligent storage. Software side, mainly including software platform, intelligent algorithm, data model and business services; Based on data and intelligence, and based on perception platform, data platform and application platform, Haikang builds a unified digital intelligence base for smart city, providing basic support for the development of various smart services such as platforms, algorithms, models and services. Build an open enabling system, provide 4 development frameworks, more than 1000 open interfaces, more than 730 common components, 198 software platforms of 3 types, and a number of tools and services of artificial intelligence and big data. Compared with competitors at home and abroad, Haikang has outstanding comprehensive competitiveness in the field of artificial intelligence.
Data and channel advantages create a business growth pole, and the customer base of qianhang Baiye weakens the industry cycle fluctuation
PBG business is the largest business group income source of Haikang in the past. Thanks to the continuous improvement of urbanization level, the security demand of departments led by the government and public security has increased; In the first stage, Haikang's growth is closely related to China's GDP growth, in which PBG business contributes the main part. With the business development in other business fields, Haikang's revenue composition is gradually decentralized, the revenue growth is gradually derailed from GDP growth, and the risk dispersion ability is further improved. In the future, with the construction of most cities entering the era of digitalization, the development direction and planning of smart cities are becoming increasingly clear. Innovative integrated security projects are gradually replacing the traditional security projects in the past. PBG will usher in new business opportunities from the perspective of smart city construction.
EBG business covers smart buildings, culture, education and health, energy metallurgy, industrial and commercial enterprises, financial services and other fields. Thanks to the accelerated implementation of enterprise digital transformation and upgrading, cost reduction and efficiency enhancement, machine replacement and other needs, EBG business has full growth momentum. Based on the ability of "Ai engineering + low code engine + multi-dimensional perception + digital world UI", EBG creates digital solutions and uses intelligent IOT and IOT integration to promote the digital transformation of the industry; Based on Haikang, yunmou provides enterprise level SaaS services for chain, community, general education, logistics and other subdivided industries. By the end of 2020, yunmou has served more than 150000 retail stores, 1.6 million community owners, 1.3 million student parents, more than 10000 office spaces, 450000 logistics nodes and 2000 developers; Nearly 1.6 million equipment terminals have been accessed in total. Compared with competitors, Haikang digital transformation scheme has leading advantages in video perception, sales and service system, downstream channels, industry understanding, software and hardware integration and other dimensions.
SMBG opens up the industrial Internet of many small and medium-sized enterprises in the pan security field through direct selling, special agent and online operation; Meet the terminal needs of small, medium-sized and micro enterprises through power video dealers, professional agents, 3C distributors, service agents and other channels. As a long tail market, small and medium-sized enterprises have scattered user needs, low project granularity, small demand for single projects and large overall number; However, the security characteristics determine the high degree of customization, so it is difficult to fully standardize and scale the business. Based on the advantages of its existing software and hardware categories, Haikang has spread online and offline channels in the mode of standardization + customization, horizontally integrated various industrial products, vertically integrated the whole industrial chain, and opened the market space by means of channel + product + scene. SMBG online platform is positioned in industrial collaboration. In the past, the marketing channel has changed from directly facing customers to directly facing industries and workers. In 2021, SMBG actively promoted the opening of online channels, accelerated the construction of two main platforms of Haikang cloud business (fb2b) and Haikang Internet (B2C), further transformed from direct supplier to platform provider, and created unique SaaS end advantages based on Haikang's original PAAS platform.
Investment advice
Based on the company's in-depth layout in the field of artificial intelligence and the future growth attributes of the company's EBG and SMBG business groups, we expect the company's net profit attributable to the parent company to be 16.784 billion yuan, 20.336 billion yuan and 24.663 billion yuan from 2021 to 2023, with corresponding P / E ratios of 22.86, 18.86 and 15.56 times, covering the "buy" rating of the company for the first time.
Risk tips
Global operational risk; Technological development is less than expected; Supply chain change risk
