Hangzhou EZVIZ Network (SH:688475) Guolian Securities·2024-08-12 10:30Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The company experienced steady revenue growth in Q2 2024, primarily driven by a strong performance in its second growth curve and successful expansion of domestic and international channels. However, the gross margin showed some fluctuations due to industry demand pressures and tax calculation differences affecting net profit growth [3][11] - The company's ecosystem has been upgraded to "2+5+N," with significant growth potential in smart hardware and ongoing investments in AI technology. The integration of AI with various smart devices is expected to drive sustained growth as consumer education deepens and business models mature [3][11] - The dual business model of "smart home + IoT public cloud" remains competitive, with continued expansion in both domestic and international channels. The company is projected to achieve revenue growth rates of 15%, 22%, and 23% from 2024 to 2026, with net profit growth rates of 15%, 27%, and 25% respectively [11][12] Financial Performance Summary - In the first half of 2024, the company achieved revenue of 2.583 billion yuan, a year-on-year increase of 13.05%. The net profit attributable to the parent company was 282 million yuan, up 8.88% year-on-year, while the non-recurring net profit was 277 million yuan, an increase of 9.89% year-on-year [11] - For Q2 2024, the company reported revenue of 1.347 billion yuan, a year-on-year increase of 11.65%. However, the net profit attributable to the parent company decreased by 6.63% year-on-year to 156 million yuan [11] - The company’s gross margin showed slight fluctuations, with a net profit margin of 11.62% in Q2 2024, down 2.27 percentage points year-on-year [11][16] Product and Channel Performance - The company’s smart home product revenue was 2.072 billion yuan, with a year-on-year growth of 9.42%. Notably, the smart entry product revenue surged by 69% year-on-year, while the cloud platform revenue increased by 30% [15] - The company’s international sales outperformed domestic sales, with a year-on-year increase of 30% in external sales, raising the external sales proportion to over 30% [11][15] Future Projections - The company is expected to achieve revenues of 5.579 billion yuan, 6.811 billion yuan, and 8.373 billion yuan from 2024 to 2026, with corresponding net profits of 648 million yuan, 821 million yuan, and 1.027 billion yuan [12][11] - The target price is set at 32.91 yuan, based on a 40x PE ratio for 2024 [11]