Hangzhou EZVIZ Network (SH:688475) Guolian Securities·2024-08-12 10:17Investment 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," indicating a broad growth potential in smart hardware, supported by 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 revenues of 55.79 billion, 68.11 billion, and 83.73 billion from 2024 to 2026, with corresponding net profits of 6.48 billion, 8.21 billion, and 10.27 billion [11][12] Financial Performance Summary - In H1 2024, the company achieved revenue of 25.83 billion, a year-on-year increase of 13.05%, and a net profit of 2.82 billion, up 8.88% year-on-year. In Q2 alone, revenue was 13.47 billion, reflecting an 11.65% increase, while net profit decreased by 6.63% to 1.56 billion [11][12] - The company’s gross margin showed slight fluctuations, with a net profit margin of 11.62% in Q2, down 2.27 percentage points year-on-year. The overall expense ratios for sales, management, R&D, and financial costs remained relatively stable [11][16] - The company’s revenue from smart home products was 20.72 billion, with notable growth in smart entry products (up 69%) and service robots (up 273%). The international sales growth outpaced domestic sales, with external sales accounting for over 30% of total revenue [11][15]