\u3000\u3 China Vanke Co.Ltd(000002) 236 Zhejiang Dahua Technology Co.Ltd(002236) )
Event: the company released its 2021 annual report & the first quarterly report of 2022, realizing a revenue of 32.835 billion yuan, a year-on-year increase of + 24.07%; The net profit attributable to the parent company was 3.378 billion yuan, a year-on-year increase of - 13.44%. In 2022q1, the revenue was 5.848 billion yuan, a year-on-year increase of + 14.34%, and the net profit attributable to the parent company was 356 million yuan, a year-on-year increase of + 2.3%.
The performance is in line with expectations, and the overseas business performance is better than that in China. In 2021, Q4 company achieved a revenue of 11.35 billion yuan, a year-on-year increase of + 10.20%, and a net profit attributable to the parent company of 979 million yuan, which was - 9.12% year-on-year due to the impact of exchange / credit impairment / Zero run investment. In terms of business groups, the revenue of Tob end business in 2021 was 8.622 billion yuan, a year-on-year increase of + 27.61%; The revenue of tog end business was 5.852 billion yuan, a year-on-year increase of + 3.17%; The revenue of channel, smart home and other businesses was 4.872 billion yuan, a year-on-year increase of + 37.22%. Affected by the epidemic relief and economic recovery in various countries, the overall growth rate of overseas market business was better than that in China, with a revenue of 13.489 billion yuan, a year-on-year increase of + 28.63%.
The gross profit margin is expected to remain stable. The overall gross profit margin of the company in 2021 is 38.91%; 2022q1 is 39.03%. The overall gross profit margin of the company decreased slightly compared with the same period. On the one hand, the freight is included in the gross profit margin due to the adjustment of accounting standards, and on the other hand, the high base caused by high gross profit thermal imaging in 2020. If the impact of these two aspects is removed, it can be seen that the refined management has slightly increased the gross profit margin. Looking forward to 2022, the proportion of the company's high gross profit software revenue will increase steadily. With the optimization of product structure and the gradual repair of supply chain, the company's cash flow and gross profit margin are expected to improve.
Innovative business has become an important engine for long-term and steady development. In 2021, the company's innovative business achieved a revenue of 2.848 billion yuan, a year-on-year increase of + 61.70%. Among them, machine vision, smart home and automotive electronics grew rapidly. The rapid development of innovative business has greatly broadened the channel of the company's smart IOT and has become the driving force for the company's long-term development. The company has invested heavily in R & D and recruitment, and built a technical architecture system of "one system and two platforms". The scale of Yunrui platform has grown rapidly and accelerated the popularization of smart IOT capability in the industry.
Investment suggestion: we predict that the company's revenue in 202224 will be 38.269/45.331/53.285 billion yuan, and the net profit attributable to the parent company will be 4.394/56.25/7.102 billion yuan, maintaining the "buy" rating of the company.
Risk tips: innovation incubation is not as expected, the risk of raw material price rise, and the intensification of Sino US trade friction.
