\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. In 2021, the company's revenue was 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 decrease of 13.44%; 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 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%.
Overseas + sinking strategy keeps pace with steady growth in revenue and pressure on profits. Revenue side: in 2021, the company's revenue was 32.835 billion yuan, a year-on-year increase of 24.07%. In terms of business, the company's tob business achieved a revenue of 8.622 billion yuan in 21 years, with a year-on-year increase of 27.61%; Tog business achieved a revenue of 5.851 billion yuan, a year-on-year increase of 3.17%. Innovative businesses such as machine vision and intelligence + showed a high boom, with revenue of 2.85 billion yuan, a year-on-year increase of 61.7%, and overseas business revenue of 13.489 billion yuan, a year-on-year increase of 28.63%; Profit side: in 2021, the company realized a net profit of RMB 3.103 billion, an increase of 13% at the same time; The comprehensive gross profit margin was 38.91%, with a year-on-year decrease of 3.8pct; The net interest rate was 10.39%, a year-on-year decrease of 4.5pct. The main reasons are: 1) affected by the epidemic, the cost of key materials increased sharply, resulting in the decline of the company's overall gross profit margin; 2) The company continued to increase its investment in technological innovation and R & D in core areas such as artificial intelligence and machine vision. The R & D cost rate was 13%, and the R & D investment reached 3.5 billion yuan, a year-on-year increase of 15%.
Dahua think strategy was officially released to build a two-way strategic layout of "two verticals" and "two balances" for cities and enterprises. "Two vertical": in the field of urban business, the company fully adapts to the business process of customers and enables digital intelligence. In transportation, traffic police, port, public livelihood, ecological environment and other industries, it has insight into more than 5000 segmentation scenarios, developed more than 800 business components, and launched more than 200 industry solutions. In the field of enterprise business, the company combines AI, big data and other advanced technologies with industry data, has insight into more than 3000 business segmentation scenarios, developed more than 1000 business components, and accumulated more than 300 industry solutions. Through the loading of these schemes, the company continues to enable the enterprise's "safety system, production value and operation management"; "Two horizons" of aiot + IOT digital intelligence platform: build a comprehensive perception of the world, diversified data connection, world control and cooperation and local real-time business closed loop through aiot; Relying on the IOT digital intelligence platform, the industry software paradigm precipitation is formed, and the full stack functions such as cloud connected everything, view intelligence, big data mining and multi-dimensional data value are realized.
Investment suggestion: the continuous recommendation of intelligent video IOT will expand consumer applications to industrial and production applications. Sensors, cameras, network infrastructure, big data, cloud and AI technology will be the key and core of aiot. The long-term development of the industry still maintains a good trend. As a leading enterprise of R & D platform, the company has accumulated a deep moat in market, R & D, supply chain and other aspects, The advantages of the company's platform will continue to be reflected in the rapidly changing market in the future. We expect that the company's EPS from 2022 to 2024 will be 1.51 yuan, 1.83 yuan and 2.30 yuan respectively, and the corresponding PE will be 11 times, 9 times and 7 times respectively. Maintain a "recommended" rating.
Risk warning: industry competition intensifies the risk; Risks of new related parties; Slow layout of new areas and risks
