\u3000\u3 China Vanke Co.Ltd(000002) 415 Hangzhou Hikvision Digital Technology Co.Ltd(002415) )
Event: Hangzhou Hikvision Digital Technology Co.Ltd(002415) in 2021, the operating revenue reached 81.42 billion yuan, with 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 net profit attributable to the parent company after deduction was 1.644 billion yuan, a year-on-year increase of 28.42%.
In the first quarter of 2022, the company realized 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 attributable to the parent company after deducting non profits was 2.210 billion yuan, a year-on-year increase of 9.30%.
The Chinese market grew steadily and international business gradually recovered Hangzhou Hikvision Digital Technology Co.Ltd(002415) China's business is based on the needs of different industries and expands its territory by layers, including public service group (PBG), enterprise group (EBG) and small and medium-sized enterprise group (SMBG). (1) PBG: the operating revenue was 19.161 billion yuan, a year-on-year increase of 19.85%. By the end of 2021, the company has provided 346 kinds of system solutions for government customers in different business scenarios; The fourteenth five year reform will bring more incremental demand to the government. (2) EBG: the operating revenue was 16.629 billion yuan, a year-on-year increase of 12.94%. During the reporting period, it has cooperated with more than 1000 ecological partners to jointly develop more than 13000 intelligent applications Hangzhou Hikvision Digital Technology Co.Ltd(002415) in order to better respond to the needs of users, huipin application enabling platform for smart Park and yunmou enterprise SaaS platform for chain users are built. Among them, the number of yunmou users and access devices has increased significantly. 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 device terminals. (3) SMBG: achieved a revenue of 13.49 billion yuan, a year-on-year increase of 46.49%. Small and medium-sized enterprises are an important part of the national economy. According to iResearch consulting data, the market scale of digital upgrading services for small and medium-sized enterprises is about 330 billion in 2022, and the market space is broad. Through the establishment of three business groups, the company has developed synchronously, comprehensively covered China's digital transformation market, deepened brand influence, and laid a solid foundation for opening up a broader market in the future.
In the international market, the overseas market gradually recovered from the epidemic, and the growth rate of the company's overseas main business picked up. In 2021, the company achieved a revenue of 18.926 billion yuan, a year-on-year increase of 15.09%. During the reporting period, the company has set up 66 branches in the international and Hong Kong, Macao and Taiwan regions, providing localization services for more than 150 countries and regions.
The rapid development of innovative business is a strong driving force for the company's future growth. During the reporting period, the company's innovative business achieved an operating revenue of 12.271 billion yuan, a year-on-year increase of 98.93%, and the CAGR from 2019 to 2022 was as high as 66.30%. In the innovative business, the revenue of smart home, Siasun Robot&Automation Co.Ltd(300024) , thermal imaging, automotive electronics and storage business exceeded 1 billion and achieved positive revenue. In particular, the revenue growth of thermal imaging, automotive electronics and Siasun Robot&Automation Co.Ltd(300024) business was 6189.6%, 118.9% and 103.3% respectively year-on-year. The diversified business layout of the company not only covers a wide range of subdivided fields, but also has great growth space in the future; At the same time, it also helps to form good synergy and interaction among businesses and promote the long-term and steady development of the company.
The performance of 2022q1 is in line with expectations, and the innovative business continues to expand. In the first quarter of 2021, even under the continuous influence of the static management of the epidemic situation, the shortage and price rise of upstream raw materials, the company still achieved positive growth, and the revenue increased by 18.11% year-on-year; The net profit attributable to the parent company increased by 5.29% year-on-year. In addition, in January 2022, the company invested 1.166 billion yuan, 1.280 billion yuan, 1.534 billion yuan and 1.286 billion yuan respectively with self raised funds to build Haikang Siasun Robot&Automation Co.Ltd(300024) product industrialization base, infrared thermal imaging machine product industrialization base, Haikang Siasun Robot&Automation Co.Ltd(300024) (Tonglu) base and global warehouse logistics center project. As the innovative business enters a period of rapid growth, it will strongly boost the overall performance of the company.
Investment rating and suggestions: for the first time, give buy rating Hangzhou Hikvision Digital Technology Co.Ltd(002415) in the face of the huge impact of the global epidemic on the economy, it has maintained a steady growth trend, which is closely related to its adherence to scientific and technological innovation as the driving force, continuous optimization of the service system and active layout of diversified industries. With the deepening trend of intelligent IOT, artificial intelligence and big data, Chinese enterprises and the government have increasingly strong demand for digital transformation, and the company is expected to fully enjoy the growth dividend of the industry. In addition, in terms of innovative business, the company actively expands its production scale and develops new business, which is expected to inject a steady stream of new kinetic energy into the company, and its growth can be expected in the future. We estimate that the net profit of the company from 2022 to 2024 will be 18.759 billion yuan, 22.109 billion yuan and 26.675 billion yuan respectively. The corresponding valuation of the current market value is 20.88 times, 17.72 times and 14.68 times respectively, giving the company a buy rating.
Risk tips: (1) the global epidemic continues and the risk of severe macroeconomic fluctuations; (2) The upstream raw materials are in continuous shortage and the price fluctuates sharply; (3) Innovative business expansion is less than expected.
