Hikvision (002415): Integrated Material-Integration Platform to Plan IOT
More than just seeing, building a big platform for the integration of things and information in the era of the Internet of Things, maintaining a buy rating. Haikang was established in 2001. It started with security monitoring cards and DVR business.Upgrading to “understand”, the company gradually transformed into a video-centric intelligent IoT solution and big data service provider.
We believe that because video surveillance is a natural Internet of Things system, perception is the means, and application is the soul, the company has completed the intelligent upgrade of hardware in 15-19 years, and the establishment of the AI Cloud architecture has changed from “two pools, one library and fourThe advancement from “platform” to “material information fusion data platform” is expected to show the platform effect in the 5G Internet of Things era and become an ecological grower for multiple downstream applications. We expect the company’s EPS to be 1 in 19-21.
03 yuan with a target price of 46.
09 yuan, maintain BUY rating.
The inflection point of single-quarter revenue growth in the second quarter of 1919 has arrived. The net interest rate in 1Q19-3Q19 continued to improve over the past 18 years. The company ‘s initiative to promote channel destocking has gradually completed under the background of deleveraging.Now that the turning point has been reached, we believe that the company is expected to return to high growth driven by intelligent and IoT applications.
At the same time, the company changed the structure of the seven industry divisions launched in 2009, reorganized and integrated resources, and integrated the internal business into three business groups: PBG / EBG / SMBG, which can better meet customer needs and improve internal operationseffectiveness.
Based on the release of internal synergies, the company’s net profit continued to improve in the first three quarters of 19, and it rose by 4 in 3Q19.
In the process of intelligent video surveillance, the company’s products have moved from AI center products to AI front-ends. For entry products, we believe that based on the advancement of AI chip computing power and software algorithms, the video surveillance industry has transformed from analog to digital → networked → high-definition → intelligentThe development of the trend can also present stronger consumer electronics and Internet features for civil security.
Hikvision began to deploy deep learning in 13 years, officially established Hikvision Research Institute in 14 years, launched AI center products based on GPU and deep learning technology in 15 years, and launched AI based on GPU / VPU and deep learning technology in 16 years. Front-end and entry products. Based on its own “fluorite” platform in 18 years, it has been focusing on packaging a variety of SaaS common components around application scenarios for customers. It has comprehensively enriched product lines in the AI era and has continuously enhanced product added value.
Haikang comprehensively plans the Internet of Things through the AI Cloud computing architecture + the material information fusion data platform. With the expansion of the Internet of Things, if the massive amount of alternative data generated by various terminals is converged to a cloud computing center for centralized processing, it cannot meet the rapid business developmentThe demand for response is limited to network scale, storage resources, and computing power.
Therefore, after completing various AI hardware layouts, Hikvision proposed an AI cloud computing architecture composed of edge routers, edge domains and cloud centers for IoT applications in 17 years. In 18 years, it strongly unified the software technology architecture, which can be efficient.Quickly responded to the needs of various industries; in 19, it released a data fusion data platform that supports cross-intelligent IoT and information networks.
We believe that in the past 4 years, Haikang has completed the comprehensive layout from hardware, software to system platform, and is expected to fully benefit the all-round rise of the Internet of Things industry in the 5G era.
Platform companies that have fully benefited from the 5G Internet of Things and maintain a BUY rating. We expect the company’s EPS to be 1 in 19-21.
03 yuan, reference industry average of 25 years.
02 times PE estimation, considering Haikang’s comprehensive layout of the Internet of Things from hardware, software to system platform, we give the company 28-30 times PE for 20 years, with a target price of 46.
09 yuan, maintain BUY rating.
Risk warning: internal macro risks; intensified overseas competition; the advancement of intelligent 天津夜网 products is less than expected.