HIKVISION(SZ:002415) Minsheng Securities·2024-08-22 14:30Investment Rating - The report maintains a "Recommended" rating for Hikvision [4]. Core Views - Hikvision's total revenue for H1 2024 reached 41.209 billion yuan, a year-on-year increase of 9.68%, while net profit attributable to shareholders decreased by 5.13% to 5.064 billion yuan. The non-recurring net profit attributable to shareholders was 5.243 billion yuan, reflecting a year-on-year growth of 4.11% [2][3]. - The company continues to enhance its innovation and R&D investments, with R&D expenditure in H1 2024 amounting to 5.698 billion yuan, a year-on-year increase of 7.81% [3]. Revenue Breakdown - PBG Business: Revenue of 5.693 billion yuan in H1 2024, down 9.25% year-on-year, accounting for 13.81% of total revenue [3]. - EBG Business: Revenue of 7.489 billion yuan, up 7.05% year-on-year, representing 18.17% of total revenue. The company is focusing on process reform and organizational synergy [3]. - SMBG: Revenue of 5.789 billion yuan, a slight increase of 0.64% year-on-year, making up 14.05% of total revenue. The company is strengthening its compliance system [3]. - Overseas Business: Revenue of 11.441 billion yuan, up 15.46% year-on-year, accounting for 27.76% of total revenue. The company is navigating a complex domestic and international environment [3]. - Innovation Business: Revenue of 10.328 billion yuan, a significant increase of 26.13% year-on-year, constituting 25.06% of total revenue. This segment is becoming a strong growth engine for the company [3]. Future Projections - Revenue forecasts for 2024-2026 are 98.98 billion yuan, 110.18 billion yuan, and 122.80 billion yuan, respectively. EPS estimates for the same period are 1.63 yuan, 1.76 yuan, and 1.93 yuan, with corresponding PE ratios of 16, 15, and 14 times [3][4].