Hangzhou EZVIZ Network (SH:688475) Caixin Securities·2024-08-19 02:00Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company has shown a robust revenue growth of 13.05% year-on-year in H1 2024, achieving a revenue of 25.83 billion yuan and a net profit of 2.82 billion yuan, which is an increase of 8.88% year-on-year [3] - The company is focusing on integrating AI technology with smart devices, forming a "2+5+N" system that includes core self-developed product lines and various ecological products [4] - New business segments are outpacing traditional ones, with smart home entry products growing by 68.97% year-on-year and smart service robots by 273.34% year-on-year, while traditional smart home cameras saw a decline of 4.42% due to structural channel adjustments [4] - The company is optimizing its retail channels, with online sales accounting for 21% of total sales in H1 2024, and e-commerce sales for mainstream products reaching over 40% [5] Financial Summary - The company’s revenue is projected to grow from 59.48 billion yuan in 2024 to 86.79 billion yuan in 2026, with net profit expected to rise from 6.67 billion yuan to 10.34 billion yuan in the same period [5][6] - Earnings per share (EPS) is forecasted to increase from 0.85 yuan in 2024 to 1.31 yuan in 2026, with corresponding price-to-earnings (P/E) ratios decreasing from 31.70 to 20.44 [5][6] - The gross margin improved to 43.34% in H1 2024, while the net margin slightly decreased to 10.90% [5]