\u3000\u3 China Vanke Co.Ltd(000002) 415 Hangzhou Hikvision Digital Technology Co.Ltd(002415) )
Key investment points
Performance summary: the company achieved an operating revenue of 81.42 billion yuan in 2021, a year-on-year increase of 28.2%; The net profit attributable to the parent company was 16.8 billion yuan, a year-on-year increase of 25.5%.
The company's annual revenue and net profit attributable to the parent company increased rapidly in 2021, and the gross profit margin remained stable. 1) From the revenue side, the company's revenue increased by 28.2% year-on-year in 2021, mainly due to the rapid development of innovation business and construction engineering business. 2) From the profit side, the net profit attributable to the parent company in 2021 increased by 25.5% year-on-year, mainly due to the increase of operating revenue compared with the same period last year. The gross profit margin of the company was 44.3%, down 2.2% from the same period last year, mainly due to the recognition of some engineering project revenues with low gross profit at the end of 2021 and the adjustment of accounting standards in the fourth quarter of 2021. 3) From the cost side, the sales cost increased by 16.4% year-on-year in 2021, mainly because the company continued to increase investment in marketing networks outside China; Management expenses increased by 19.1% year-on-year, mainly due to the expansion of the company's business scale and personnel growth; The R & D expenses of the company continued to increase by 29.4% year-on-year.
Innovative businesses have flourished and become an important driving force for growth. Since 2015, the company has encouraged internal employees to innovate and start businesses, established an internal innovation follow-up investment system, and successively established 8 innovation businesses. The company's innovative business scale continued to expand and achieved good market position in their respective markets. In 2021, the revenue of innovative businesses such as smart home, Siasun Robot&Automation Co.Ltd(300024) , thermal imaging, automotive electronics and storage exceeded 1 billion and achieved positive revenue. In the future, the company will continue to strengthen the cooperation between new business, main business and new business to achieve common development.
Increase R & D investment, and promote the platform operation of software and hardware R & D in an orderly manner. The company attaches great importance to the technological innovation in the field of intelligent IOT, and provides a series of intelligent IOT software and hardware products with software and hardware integration, cloud edge integration, material information integration and digital intelligence integration, so as to realize the benign interaction of software and hardware product development. The company continues to increase R & D investment and expand R & D team. In 2021, R & D investment accounted for more than 10% of operating revenue, and the number of R & D personnel exceeded 20000, with a year-on-year increase of 23.1%. The company will build comprehensive capacity with continuous R & D investment, maintain the advantages of technology and product R & D, and promote the long-term development of the company.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 2.10 yuan, 2.48 yuan and 2.89 yuan respectively, and the net profit attributable to the parent company will reach a compound growth rate of 17.5% in the next three years. Considering that the company is a leading enterprise in the field of intelligent IOT, attaches great importance to core technology R & D and new business development, continues to improve the global marketing service network and expand the R & D team, it is expected that the order volume will usher in a significant growth in 2022. It is estimated that it will be valued at 25 times in 2022, with a corresponding target price of 52.5 yuan. It will be covered for the first time and given a "buy" rating.
Risk warning: the R & D project is not as expected, and the development of innovative business is not as expected.
