\u3000\u3 China Vanke Co.Ltd(000002) 415 Hangzhou Hikvision Digital Technology Co.Ltd(002415) )
Event: the company released the 21st Annual Report and the first quarterly report of the 22nd year. In 21 years, the revenue and net profit attributable to the parent company were 81.4/16.8 billion yuan respectively, an increase of 28% / 26% respectively. 22q1’s revenue was 16.5 billion yuan, a year-on-year increase of 18%, and the net profit attributable to the parent company was 2.3 billion yuan, a year-on-year increase of 5%. The slower growth than the revenue was mainly due to the faster growth of expenses than the revenue, exchange losses and other factors.
Rapid growth of main businesses outside China: 1) PBG is expected to usher in an inflection point: government departments have invested less in the past few years, and some delayed demand may increase the investment in 22 years. By the end of the 21st century, Haikang had provided 346 types of system solutions for government users, which were widely used in grass-roots governance, epidemic prevention and control, traffic safety, emergency management, land and resources and other scenarios. The perceptual fusion empowerment platform has been applied to nearly 100 projects in 72 prefectures and cities in 19 provinces in China in the past 21 years. 2) EBG continues to enable enterprise digital transformation: it has deeply cooperated with more than 1000 ecological partners to jointly develop more than 13000 intelligent applications. The company has built two EBG platforms: huipin application enabling platform for smart Park and yunmou enterprise SaaS platform for chain users. Huipin platform widely serves users in multi industry parks such as enterprises, chemical industry, campus scenic spots and industries. With rapid growth in 21 years, yunmou has been applied to more than 40000 office places, 280000 retail stores and Shanghai Pudong Development Bank Co.Ltd(600000) logistics nodes, served 4.16 million community owners and 3.5 million students’ parents, and accessed 2.5 million equipment terminals. In addition, overseas revenue increased by 24% to 22 billion yuan under the complex international situation.
Product and technical capability improvement: Haikang has gradually built a full spectrum sensing technology platform extending from visible light to far-infrared, X-ray, millimeter wave and other bands. There are nearly 30000 types of hardware equipment on sale, which can adapt to the characteristics of scattered orders, frequent demand switching and high integrity requirements of the intelligent IOT industry. On the basis of unified software technology architecture, the company’s 21 year software development efficiency has been demonstrated, and the software development platform has been improved to help the regional software customization development ability. In the past 21 years, the ability of Haikang AI open platform has expanded from vision to multimodality such as sound classification, character recognition and data intelligence. Technologies such as autonomous learning and arrangement platform improve accuracy and reduce the threshold of use.
Full flowering of innovative business: the revenue of innovative business nearly doubled to 12.3 billion yuan in 21 years, accounting for more than 15% of the revenue. The number of innovative businesses with a scale of more than 1 billion yuan increased from 2 in 20 years to 5 in 21 years, such as fluorite, Siasun Robot&Automation Co.Ltd(300024) , automotive electronics, micro photography and storage. 1) Fluorite smart products include four categories: Home camera, home entry, control and service Siasun Robot&Automation Co.Ltd(300024) and so on. Fluorite cloud platform was connected to 159 million IOT devices at the end of 21, with more than 90 million users and more than 35 million monthly active users. 2) Haikang Siasun Robot&Automation Co.Ltd(300024) company doubled its revenue to 2.76 billion yuan in 21 years. In 21 years, it released a new generation of mobile Siasun Robot&Automation Co.Ltd(300024) amr architecture platform “smart base” and new hardware products based on the platform, forming four new hardware product series, and released the first generation of low code application development platform, which is widely used in automobile, electronics and new energy industries; Machine vision business expanded from 2D to 3D. In January, the company announced that it would invest 2.7 billion yuan in the industrialization of Siasun Robot&Automation Co.Ltd(300024) business and the construction of manufacturing base. 3) In the 21st year, the front loading business of automotive electronics and passenger cars doubled, and the number of new designated projects doubled, of which the expected sales of new contracts quadrupled compared with the end of the 20th year. The full-automatic parking system scheme and the visual perception system inside and outside the cabin have been designated for more than 10 mass-produced models of independent brands such as great wall, Geely and Chang’an, and have also officially been designated for platform product projects of many international customers such as Volkswagen, Volvo, Mazda and Toyota. 4) Haikang Huiying has entered the fields of high threshold medical visual imaging, multi-dimensional perception and artificial intelligence, and has products such as endoscope, digital operating room and digital ward.
We predict that the company’s earnings per share for 22-24 years will be 2.13/2.58/3.07 yuan respectively (the original forecast for 22-23 years is 2.23/2.66 yuan, slightly increasing the revenue and reducing the gross profit margin forecast according to the annual report). According to the 22-year 28 times PE valuation level of the comparable company, the corresponding target price is 59.66 yuan, maintaining the purchase rating.
Risk tips
The macroeconomic development is less than expected, the overseas business development is less than expected, and the innovation business development is less than expected.
