\u3000\u3 China Vanke Co.Ltd(000002) 236 Zhejiang Dahua Technology Co.Ltd(002236) )
Event: on April 22, the company released the annual report of 2021 and the first quarterly report of 2022. According to the announcement, the company achieved an operating revenue of 32.835 billion yuan in 2021, 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 decrease of 13.44%; The net profit deducted from non parent company was RMB 3.103 billion, with a year-on-year increase of 13.47%. In the first quarter of 2022, the operating revenue was 5.848 billion yuan, a year-on-year increase of 14.34%; The net profit attributable to the parent company was 356 million yuan, a year-on-year increase of 2.30%.
The annual performance grew steadily and the profit margin declined slightly compared with the same period: 1) revenue side: the overall revenue of the company in 21 years was 32.835 billion yuan, with a year-on-year increase of 24.07%, which was mainly due to the expansion of overseas channels, optimization of product structure and improvement of operating efficiency; Under the macroeconomic downturn, the company’s innovative business still achieved high growth and its business territory continued to expand. 2) Profit side: the gross profit margin of the company in 21 years was 38.91%, down 3.8pct year-on-year, and the net profit margin was 10.39%, down 4.5pct year-on-year; We believe that the company’s gross profit is mainly affected by the company’s continuous expansion of overseas business, market sinking strategy and the rise of upstream costs. In 21 years, the R & D investment was 3.452 billion yuan, with a year-on-year increase of 15.16%. The company mainly increased investment in AI, big data, cloud computing and other fields, providing customers with more comprehensive product solutions. Although the company’s profit rate at the upstream side remained stable for 21.3 years, despite the year-on-year pressure of 39.3%, the company’s profit rate at the upstream side remained stable for 21.3 years.
The company’s revenue from overseas business increased by 86.2% year-on-year, accounting for 2.72% of the total revenue of domestic business. According to the announcement, at present, the company has more than 3000 tob business segmentation scenarios, mainly providing services through “Haorui” and “Yunrui” platforms. Over the past 21 years, Yunrui platform has released more than 200 new functions and released a variety of industrial smart IOT SaaS products. It outputs solutions in manufacturing, energy, education and other industries to realize business revenue of multiple scenarios and businesses. In addition, in 21 years, tog business achieved a revenue of 5.85 billion yuan, an increase of 3.17% year-on-year. The company further focused on urban digital transformation and built an urban platform 2.0 based on aiot and IOT digital intelligence platform. According to the announcement, at present, the company has accumulated more than 1000 business models and 200 scenario schemes in the field of urban governance, comprehensively enabling the effective implementation of urban control and ensuring the steady growth of tog business. 2) Overseas business: in 21 years, the overseas business revenue was 13.489 billion yuan, yoy + 28.63%. The company added more than 2600 Dahua element / image stores throughout the year, with a total of 5000 stores, an increase of 112% year-on-year in 2020. At present, the company pays attention to the improvement of distribution network overseas, and has established two overseas manufacturing centers in India and Vietnam to provide sustainable revenue growth for the company in the future through perfect supply chain system and marketing management mode.
The innovative business continues to be laid out and can grow continuously in the future: in 21 years, the company’s innovative business achieved a revenue of 2.85 billion yuan, yoy + 61.7%. At present, the company’s innovative business is mainly concentrated in the fields of industry Siasun Robot&Automation Co.Ltd(300024) , smart home, automotive electronics, intelligent security inspection, intelligent fire protection, etc., and continues to launch new software and hardware products in the innovative business field to broaden the company’s product matrix. Among them, Huarui technology, a subsidiary of the company in Siasun Robot&Automation Co.Ltd(300024) field, continues to cultivate this business scenario, with the average annual R & D expenses accounting for more than 20% of the operating revenue, and the products have covered companies in many fields at home and abroad. In the field of consumer electronics, the number of smart home products and aiot devices released increased by more than 35% as a whole, and the number of global user registrations increased by more than 40%, reflecting the company’s high growth potential in the field of consumption. In the future, the company will build a smart IOT ecological community through the development of innovative business, bringing new growth space for the company.
Investment suggestion: we estimate that the company’s revenue from 2022 to 2024 will be 39.734 billion yuan, 47.618 billion yuan and 56.71 billion yuan respectively, the net profit attributable to the parent company will be 5.255 billion yuan, 6.434 billion yuan and 7.849 billion yuan respectively, and the EPS will be 1.75 yuan, 2.15 yuan and 2.62 yuan respectively, corresponding to 10 times, 8 times and 6 times of PE respectively, maintaining the “Buy-A” investment rating.
Risk warning: the improvement of global epidemic situation is less than expected; The demand growth of downstream customers is less than expected; The risk of significant changes in global exchange rates; The R & D and promotion of the company’s products did not meet expectations; Raw material price fluctuation risk.
