Hangzhou EZVIZ Network (SH:688475) Ping An Securities·2024-08-12 09:40Investment Rating - The report maintains a "Recommendation" rating for the company, indicating a positive outlook for future performance [5][9]. Core Views - The company achieved steady growth in the first half of 2024, with operating revenue of 2.583 billion yuan, a year-on-year increase of 13.05%, and a net profit attributable to shareholders of 282 million yuan, up 8.88% year-on-year [5][9]. - The company's dual core strategy of "IoT + AI" is expected to drive future growth, with a significant expansion in its product matrix and cloud platform capabilities [6][9]. - The company has upgraded its ecosystem from "1+4+N" to "2+5+N," enhancing its competitive edge in the smart home and IoT sectors [6][9]. Financial Performance Summary - In the first half of 2024, the smart home product line generated revenue of 2.072 billion yuan, a year-on-year increase of 9.42%, while the IoT cloud platform revenue reached 495 million yuan, growing by 29.97% [6][8]. - The company’s revenue projections for 2024-2026 are 5.554 billion yuan, 6.538 billion yuan, and 7.840 billion yuan, respectively, with corresponding net profits of 674 million yuan, 824 million yuan, and 1.027 billion yuan [11][12]. - The gross margin is expected to improve gradually, reaching 44.4% by 2026, while the net profit margin is projected to increase to 13.1% [13]. Business Development Summary - The company has launched several new products, including AI-enabled devices, which are expected to enhance its market position [6][9]. - The smart entry product line has seen a remarkable growth of 68.97%, contributing to 12.78% of the company's main business revenue [8]. - The company is actively expanding its domestic and international sales channels, with a focus on digital marketing and retail capabilities [8][9].