\u3000\u3 China Vanke Co.Ltd(000002) 415 Hangzhou Hikvision Digital Technology Co.Ltd(002415) )
Event:
The company issued the 2021 annual report after the closing on April 15, 2022.
Comments:
In 2021, the company’s global business was carried out smoothly, and the net profit attributable to the parent company increased by 25.51% year-on-year. In 2021, in the face of various external uncertainties, the company always focused on the growth of its own ability, maintained a stable business strategy, and ensured the smooth development of global business through stable and continuous supply chain management. 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%. The company continued to increase the inventory level, effectively cope with the shortage of chips in the whole industry, stabilize the adverse impact of commodity fluctuations and ensure the continuity of supply. The inventory at the end of 2021 was 17.974 billion yuan, a year-on-year increase of 56.60%. In terms of cost input, the company’s sales, management and R & D cost rates were 10.55%, 2.62% and 10.13% respectively.
All business groups maintained healthy growth, and the proportion of innovation business income further increased
In 2021, the company adjusted its revenue caliber, and the adjusted revenue structure is as follows: 1) domestic main business: PBG realized revenue of 19.161 billion yuan, EBG realized revenue of 16.629 billion yuan, SMBG realized revenue of 13.490 billion yuan, and other main business products and services realized revenue of 943million yuan. In 2021, China’s real estate, education and other industries fluctuated greatly due to policy adjustment, which had a certain impact on the overall growth of EBG business; SMBG and PBG maintained steady growth. 2) Overseas main business: the revenue was 18.926 billion yuan, a year-on-year increase of 15.09%. Relying on good supply capacity and solid business development at the marketing end, the overseas market share of the company continues to increase. 3) Innovative business: the revenue was 12.271 billion yuan, a year-on-year increase of 98.93%. Among them, the smart home business realized revenue of 3.948 billion yuan, Siasun Robot&Automation Co.Ltd(300024) business realized revenue of 2.762 billion yuan, thermal imaging business realized revenue of 2.214 billion yuan, automotive electronics business realized revenue of 1.432 billion yuan, storage business realized revenue of 1.385 billion yuan, and other innovative business realized revenue of 530 million yuan.
In the first quarter of 2022, the company’s operating revenue maintained steady growth and continued to strengthen procurement and preparation
In the first quarter of 2022, the company continued to operate steadily and achieved an operating revenue of 16.522 billion yuan, a year-on-year increase of 18.11%; The net profit attributable to the parent company was 2.284 billion yuan, a year-on-year increase of 5.29%; The net profit deducted from non parent company was 2.210 billion yuan, a year-on-year increase of 9.30%. In terms of expenses, the rates of sales, management and R & D expenses in the first quarter were 11.95%, 3.20% and 12.52% respectively. In terms of cash flow, the net cash flow from the company’s operating activities was -3.905 billion yuan, a year-on-year decrease of 93.49%, mainly due to the increase in the expenditure on procurement and preparation and employee compensation; The net cash flow from financing activities was RMB 4.248 billion, with a year-on-year increase of 102614%, mainly due to the receipt of restricted stock subscription in 2021 and the increase of net loan inflow.
Profit forecast and investment suggestions
The company provides global users with intelligent Internet of things solutions and big data services with video as the core. It has comprehensive advantages in technology, products and solutions, and has broad growth space in the future. It is predicted that the operating revenue of the company from 2022 to 2024 will be 96.792 billion yuan, 114354 billion yuan and 134546 billion yuan, the net profit attributable to the parent company will be 19.871 billion yuan, 23.386 billion yuan and 27.435 billion yuan, the EPS will be 211, 2.48 and 2.91 yuan / share, and the corresponding PE will be 18.96, 16.11 and 13.73 times. Considering the rapid development of innovative business, the company’s PE has mainly operated between 20-50 times in the past five years, the recent market valuation adjustment and other factors, the company’s target PE in 2022 is adjusted to 30 times, and the corresponding target price is 63.30 yuan. Maintain the “buy” rating.
Risk tips
Covid-19 recurrent pneumonia; The demand release of enterprise digital transformation is less than expected; Overseas market expansion is less than expected; The development of innovative business is less than expected; Industry competition intensifies.
