\u3000\u3 China Vanke Co.Ltd(000002) 236 Zhejiang Dahua Technology Co.Ltd(002236) )
Event: on April 1, 2022, the company issued a new round of equity incentive plan, and the performance evaluation goal is that the growth rate of revenue or net profit in 2022 / 2023 / 2024 will not be less than 16% / 34% / 56% respectively compared with that in 2021.
The equity incentive plan is widely bound with core talents, and the performance growth target shows the company’s confidence in long-term steady growth. 1) The incentive plan plans to grant a total of 149728000 rights and interests to incentive objects, accounting for about 5% of the total share capital of the company. The total number of incentive objects is 4345, including directors, senior managers and core backbone personnel, accounting for 45% of the total number of employees, covering a wide range. 2) The performance assessment objective of the company is that the growth rate of revenue or net profit in 2022 / 2023 / 2024 shall not be less than 16% / 34% / 56% respectively compared with that in 2021. After conversion, the annual growth rate of revenue or net profit in 2022 / 23 / 24 shall not be less than 16% year-on-year. This assessment objective shows the company’s confidence in its long-term steady growth.
The company always adheres to the strategy of intelligent IOT solution provider and operator service with video as the core. In October 2021, the company released the strategy of “dahuathink cloud connected digital intelligence future of all things”, continued to focus on the two business strategies of cities and enterprises, strengthened the two technology strategies of alot and IOT digital intelligence platform, and released five series of aiot product clusters: artificial intelligence platform (giant spirit), urban platform 2.0, enterprise platform 3.0 and wisdom.
AI digital upgrading drives the industrial intelligence of large-scale industrialization, and data analysis is expected to usher in a critical point. In the era of AI Internet of things, data analysis will have a broad blue ocean market, and the competitiveness of Zhejiang Dahua Technology Co.Ltd(002236) will increase unabated Zhejiang Dahua Technology Co.Ltd(002236) has the ability of hardware, software and cloud layout of the first echelon in the industry, has accumulated scene applications for many years, and has the ability of AI assembly line production + customized service. The company continues to strengthen investment in core technologies such as artificial intelligence, cloud computing and big data and software capacity-building. In the 2021 interim report, the company’s R & D expenses were 1.406 billion yuan, accounting for 10.41% of its revenue. We believe that the market has poor expectations for Dahua’s business operation, layout strength and application coverage in the field of aiot, so it has high valuation and repair space. We expect that the intelligent video IOT will be promoted, the application scenarios will be gradually extended, the market space will be continuously expanded, the product structure of the company will be upgraded, and the profitability is expected to be further improved. As one of the leading manufacturers of aiot in the video field, Dahua develops the blue ocean market. From 2021 to 2023, the company is expected to realize the net profit attributable to the parent company of RMB 4.568 billion, 5.508 billion and 6.798 billion, maintaining the “buy” rating.
Risk warning: downstream demand is less than expected and new market development is less than expected
