HIKVISION(SZ:002415) Haitong Securities·2024-08-20 03:08Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company has completed its AIoT strategic transformation and aims for a revenue target of 160-170 billion [2] - The company reported a total revenue of 41.209 billion in H1 2024, a year-on-year increase of 9.68%, while the net profit attributable to the parent company was 5.064 billion, a decrease of 5.13% [6] - The company is focusing on digitalization in various scenarios, which is expected to drive long-term growth [9] Summary by Relevant Sections Financial Performance - In H1 2024, the company achieved total revenue of 41.209 billion, with a net profit of 5.064 billion, and a non-recurring net profit of 5.243 billion, reflecting a 4.11% increase year-on-year [6] - The company experienced a one-time expense of 471 million related to stock incentives, impacting profits [6] - The overseas business generated revenue of 11.441 billion, a 15.46% increase year-on-year, accounting for approximately 28% of total revenue [6] Business Segments - The Public Service Business Group (PBG) saw a revenue decline of 9.25% to 5.693 billion, while the Enterprise Business Group (EBG) grew by 7.05% to 7.489 billion [7] - The Small and Medium Business Group (SMBG) achieved a slight revenue increase of 0.64% to 5.789 billion [6] - The innovation business generated 10.328 billion in revenue, a 26.13% increase, contributing to 25% of total business [6] Future Outlook - The company forecasts revenue growth of 12% in 2024, reaching 100.029 billion, with net profit expected to grow by 10.7% to 15.611 billion [12] - The company is expected to maintain a dynamic PE ratio of 24-28 times, with a target price range of 40.58-47.34 [10] - The focus on digitalization and innovation is anticipated to drive future growth, with a strong emphasis on understanding user needs and developing tailored solutions [9][10]