\u3000\u3 China Vanke Co.Ltd(000002) 415 Hangzhou Hikvision Digital Technology Co.Ltd(002415) )
Event: on April 15, 2022, the company released the 2021 annual report and the first quarterly report of 2022. In 2021, the company achieved a total operating revenue of 81.42 billion yuan, 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 company achieved a revenue of 16.522 billion yuan, a year-on-year increase of 18.1%; The net profit attributable to the parent company was 2.284 billion yuan, a year-on-year increase of 5.29%.
In 2021, PBG and EBG grew steadily, and SMBG achieved rapid growth. According to the latest classification rules of the company, the PBG revenue of China’s public service group was 19.161 billion yuan, a year-on-year increase of 19.85%; The EBG revenue of enterprises and institutions was 16.629 billion yuan, a year-on-year increase of 12.94%; SMBG revenue of small and medium-sized enterprise business group was 13.49 billion yuan, a year-on-year increase of 46.49%; The income of other main businesses is 943 million yuan. If the caliber of micro film business is adjusted, the growth rate of the three BGS will increase, of which EBG is the most obvious, with an adjusted growth rate of about 24%.
High growth of innovative business and recovery of overseas business. In 2021, the overall revenue of the company’s innovation business was 12.271 billion yuan, a year-on-year increase of 98.93%, of which more than 1billion innovation business entities increased from 2 to 5, including fluorite, Siasun Robot&Automation Co.Ltd(300024) s, micro film, automotive electronics and storage businesses. The growth rate of innovative business is generally fast, accounting for 15.07% of the company’s revenue, which has become a stable driving force for the growth of the company. Overseas markets gradually recovered from the epidemic, and overseas businesses accelerated recovery. In 2021, the revenue of overseas business was 18.926 billion yuan, a year-on-year increase of 15.09%. Under the background of chip shortage and sharp price rise of international logistics, the company makes full use of the advantages of global marketing network to effectively mobilize the supply chain and ensure the sales of high-value products.
Adhere to the “intelligent IOT aiot” strategy and go beyond the security boundary. The company adheres to technology-based and product empowerment, and is committed to leading the new future of intelligent IOT. At present, there are 25400 R & D personnel, a year-on-year increase of 23.09%; In 2021, the R & D investment was 8.252 billion yuan, accounting for 10.13% of revenue. A high proportion of R & D investment promoted the upgrading of software and hardware products. In terms of specific business: 1) Siasun Robot&Automation Co.Ltd(300024) business increased by 103.26% year-on-year, released a new generation of AMR software platform and expanded machine vision products to 3D product line; 2) Haikang micro film’s thermal imaging business continues to iteratively optimize products, and expand product matrix and revenue scale by improving positioning accuracy and broadening product sequence; 3) The automotive electronics business increased by 118.92% year-on-year, focusing on the intelligent driving demand of passenger cars and commercial vehicles. The number of new designated projects of passenger cars doubled in 2021, and the expected sales of new contracts doubled compared with the end of 2020.
Investment suggestion: among the current global technology giants, the company adapts to the fragmentation characteristics of alot era through active structural change, and will take the lead in enjoying the dividend of innovative business blooming in multiple scenarios in the era of intelligence. It is estimated that the net profit attributable to the parent company from 2022 to 2023 will be 18.933 billion yuan and 22.413 billion yuan, and the corresponding PE will be 20x and 17x respectively. Maintain a “recommended” rating.
Risk warning: repeated outbreaks may lead to global business risks and supply chain risks; Overseas trade risks; The progress of new product market is less than expected; The spin off listing was less than expected.
