Hikvision (002415) in-depth analysis: video applications fully penetrate the security faucet again
Hikvision is a leading company in security video surveillance in mainland China. It is also a leader in the global market. Since 2015, the company has gradually expanded to various innovative businesses based on video codec and AI Cloud architecture business, and has achievedWith good results.
After entering 2018, the 四川耍耍网 company is facing various challenges, including the adverse effects of the US government ‘s “National Defense Authorization Act” and the government ‘s procurement competition caused by internal macroeconomics. However, the company responds to changes in the industry through a positive attitude.The company still has good development prospects and investment value.
It mainly includes the following three aspects: In the short term, the demand for government and corporate procurement is gradually released: in 2018, the macro economy has improved, and local governments and large enterprises, especially state-owned enterprises, have improved their spending reduction.Therefore, the demand for the domestic security industry has been affected since the second half of the year.
However, after entering 2019, especially starting at the 南京桑拿网 end of the second quarter, in the context of increasing demands for a safe environment and the gradual relaxation of government funding, we can see from the exchanges in the industry chain that video surveillance is the main security industryShowing a warming up trend.
As a leading company in the industry market, Hikvision has obvious channel advantages in government and major customers. We believe that the recovery of the company’s demand is a change that is worth looking forward to in the short term.
In the medium term, AI-infiltrated security will usher in an increase in the size of the market: The security video surveillance industry will still be able to maintain two-digit overall scale growth from the expectations of the global market, showing a good development trend.
From the process of industry development, after experiencing the development process from analog to digital and digital to high definition, the current industry is gradually developing from high definition to artificial intelligence, that is, from “visible” to “clear”To the “understand” process.
In the continuous development of the industry towards technology-intensive evolution, the industry’s competitive advantage will be further concentrated on leading enterprises, relying on the scale effect brought by capital and manpower investment, and it must also increase customer stickiness under the strengthening of flexible customization capabilities.
Whether it is the global leading security development trend or the three domestic engineering-driven security technology indicators, the industry development of leading companies is expected to continue to strengthen, and Hikvision has a good opportunity to benefit.
In the long run, the traditional security industry has penetrated the pan-security field: the core of security video surveillance is about the collection and processing of optical information, and optical applications are penetrating into multiple markets including smart homes, smart cars, smart logistics, and industrial vision.In China, the technology of the security industry has not inherited the traditional public security, transportation and other traditional markets, and it has fully penetrated into various pan-security markets.
From the perspective of Hikvision, the smart home fluorite business has achieved a revenue scale of 1 billion yuan and achieved profits in 2017, while logistics, storage, and industrial vision products continue to grow rapidly at the same time.
We believe that the company passed more than one.
The 60,000-person R & D team has already made a sufficient technical reserve and has achieved considerable results in the channel market. Therefore, the company is expected to open up new growth opportunities in the process of the development of video surveillance to emerging application markets.
Investment suggestion: Our company predicts that the revenue from 2019 to 2020 will be 1 respectively.
72 and 2.
Return on net assets were 26.
9% and 22.
1%, give buy-A recommendation.
Risk warning: The overall scale of government orders in the domestic market and the speed of procurement advancement are less than expected; intensified competition in the domestic market affects the company’s profitability; overseas markets are affected by national and trade policies than expected; the development of new product business is less than expected.