Hangzhou EZVIZ Network (688475) 天风证券·2024-08-11 06:50Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating a potential upside of 10%-20% over the next six months [4]. Core Insights - The company reported a revenue of 2.583 billion yuan for H1 2024, representing a year-on-year increase of 13.05%, and a net profit of 282 million yuan, up 8.88% year-on-year [1]. - The performance of smart locks and service robots was particularly strong, with the smart home product line achieving a revenue growth of 68.97% year-on-year, contributing to 12.78% of the company's main business revenue [1]. - The company is focusing on expanding its overseas market presence, with export revenue growing by 29.9% year-on-year, increasing its share of total revenue from 29% in Q1 2023 to 33% in H1 2024 [1]. Financial Performance Summary - For H1 2024, the company's gross margin was 43.34%, a slight increase of 0.38 percentage points year-on-year, while the net profit margin was 10.9%, down 0.41 percentage points year-on-year [1]. - The company’s sales, management, R&D, and financial expense ratios for H1 2024 were 14.61%, 3.3%, 16.35%, and -2.45%, respectively, with sales expenses increasing due to expanded market outreach [2]. - The forecast for net profit attributable to the parent company for 2024-2026 is adjusted to 690 million, 830 million, and 950 million yuan, respectively, with corresponding dynamic P/E ratios of 33.1x, 27.4x, and 23.9x [2]. Revenue and Growth Projections - The company’s revenue is projected to grow from 4.31 billion yuan in 2022 to 7.33 billion yuan by 2026, with a compound annual growth rate (CAGR) of approximately 14.98% [3]. - The expected growth rates for revenue are 11.71% in 2024, 17.84% in 2025, and 14.98% in 2026 [3]. Market Position and Strategy - The company is recognized as a leading player in the smart home sector, leveraging integrated hardware and software solutions to expand its product categories and application scenarios [2]. - The shift in channel structure and product mix, along with supply chain reforms, is expected to enhance profitability [2].