Hangzhou EZVIZ Network (688475) 民生证券·2024-08-11 13:00Investment Rating - The report maintains a "Recommended" rating for the company [4][3]. Core Insights - The company achieved a total revenue of 2.583 billion yuan in H1 2024, representing a year-on-year growth of 13.05%, and a net profit attributable to shareholders of 282 million yuan, up 8.88% year-on-year [2][3]. - Innovative businesses such as smart home entry, cloud platforms, and robots have shown strong performance, driving the gross margin to a new high of 43.34% in H1 2024 [2][3]. - The smart home entry business generated 328 million yuan in revenue, a year-on-year increase of 68.97%, with a gross margin of 41.46% [2][3]. - The smart service robot business saw a remarkable revenue increase of 273.34% year-on-year, reaching 55 million yuan [2][3]. - The IoT cloud platform achieved 495 million yuan in revenue, up 29.97% year-on-year, with a gross margin of 76.13% [2][3]. - The smart home camera segment experienced a revenue decline of 4.42% year-on-year, contributing 1.444 billion yuan, which accounted for 56.25% of total revenue in Q2 2024 [2][3]. - The company is focusing on new product launches and channel development both domestically and internationally to lay a solid foundation for future recovery [3][2]. - The company is expected to achieve net profits of 751 million, 996 million, and 1.323 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding PE ratios of 30X, 23X, and 17X [3][4]. Financial Summary - For 2024E, the company is projected to have total revenue of 4.84 billion yuan, with a growth rate of 12.4% [4][6]. - The net profit attributable to shareholders is expected to be 563 million yuan in 2023A, increasing to 751 million yuan in 2024E, reflecting a growth rate of 68.8% [4][6]. - The gross margin is anticipated to improve to 42.85% in 2024E, with a net profit margin of 11.63% [4][6].