\u3000\u3 China Vanke Co.Ltd(000002) 415 Hangzhou Hikvision Digital Technology Co.Ltd(002415) )
Event: the company achieved a revenue of 81.42 billion yuan in 2021, a year-on-year increase of + 28.21%; The net profit attributable to the parent company was 16.8 billion yuan, a year-on-year increase of + 25.51%. In 2022q1, the revenue was 16.522 billion yuan, a year-on-year increase of + 18.11%, and the net profit attributable to the parent company was 2.284 billion yuan, a year-on-year increase of + 5.29%.
Innovation and overseas business are expected to build the initiative for future growth. The anti epidemic had an impact on the regional economy, but the company maintained a steady operation. In 2021q4, the company achieved a revenue of 25.791 billion yuan, a year-on-year increase of + 20.06%, and the net profit attributable to the parent company was 5.835 billion yuan, a year-on-year increase of + 17.96%, which was in line with expectations. In 2021, PBG / EBG / SMBG / overseas / innovative business achieved revenue of 19.2/166134.90/189/12.3 billion yuan respectively, with a year-on-year increase of 20% / 13% / 46% / 15% / 99% respectively. With the gradual weakening of the impact of the epidemic in overseas markets and the vigorous R & D Progress of innovative businesses, innovation and overseas businesses are expected to become the driving force of performance growth.
It is expected that the annual gross profit margin will remain stable. The global chip shortage continues. As most of the company’s main raw materials and embedded equipment are price locked in the futures market, the cost is relatively stable. The company’s overall gross profit margin in 2021 is 44.33%; 2022q1 is 43.72%. Since the revenue of some engineering projects with low gross profit was recognized at the end of the 21st century, and the freight was adjusted as the cost item according to the accounting standards from 2021q4, the gross profit margin of 2021q4 was 40%. Looking forward to 2022, the cost of some raw materials is still likely to rise, but the overall situation is controllable, and the annual gross profit margin is expected to remain stable.
Increase R & D investment in software and hardware architecture and innovative business. The company has made iterative upgrading in terms of software and hardware, and vigorously developed innovative business. In 2021, the R & D expenditure was 8.252 billion yuan, a year-on-year increase of + 29.36%. In 2021, there were five innovative businesses with revenue exceeding 1 billion and positive net profit, entering the period of high income increase. In 2022, the macro economy is under great pressure, but the demand for intelligent urban governance and digital transformation of enterprises is clear. For a long time, the company is still optimistic about the growth potential of the company in various business groups, innovative businesses and other markets.
Investment suggestion: we predict that the company’s revenue in 202224 will be 95.774115.289137.493 billion yuan, and the net profit attributable to the parent company will be 19.971239.63/28.543 billion yuan, maintaining the “buy” rating.
Risk tip: the downstream demand / security AI promotion is not as expected, and the Sino US trade friction intensifies.
