Zhejiang Dahua Technology (SZ:002236) Tianfeng Securities·2024-08-27 13:50Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [3][12]. Core Views - The company achieved a revenue of 14.87 billion yuan in the first half of 2024, representing a year-on-year growth of 1.59%. However, the net profit attributable to the parent company decreased by 8.42% to 1.81 billion yuan [1]. - The company is focusing on innovation and has increased its R&D expenses by 4.78% to 1.90 billion yuan in the first half of 2024. The gross margin for the half-year stood at 41.27%, a decrease of 1.57 percentage points year-on-year [1]. - The AI capabilities of the company's large model have significantly improved, particularly in urban governance and the power industry, with accuracy improvements of over 10% and 20% respectively [1]. - The integration of vehicle-road-cloud technology is seen as a new growth opportunity for the company, with strategic partnerships and pilot cities being established to explore commercial models [1]. Financial Data Summary - The company reported a revenue of 30,565.37 million yuan in 2022, with a projected increase to 35,440.15 million yuan in 2024, reflecting a growth rate of 10% [2][6]. - The net profit attributable to the parent company is expected to be 3,388.35 million yuan in 2024, down from 7,361.89 million yuan in 2023, indicating a significant decline of 53.97% [2][6]. - The company's earnings per share (EPS) is projected to be 1.03 yuan in 2024, compared to 2.24 yuan in 2023 [2][6]. Business Segment Performance - The innovative business segment saw a revenue increase of 8.95% to 2.46 billion yuan, while the To G business segment experienced a decline of 15.07% to 1.76 billion yuan [1]. - The company is leveraging AI to enhance its business competitiveness and expand market opportunities, particularly in the AI to B sector [1].