Hangzhou EZVIZ Network (688475) Donghai Securities·2024-09-01 12:15Investment Rating - The report maintains a "Buy" rating for the company, expecting a strong performance in the next six months [11]. Core Insights - The company achieved a revenue of 2.583 billion yuan in H1 2024, representing a year-on-year increase of 13.05%, with a net profit attributable to shareholders of 282 million yuan, up 8.88% year-on-year [7]. - The company continues to innovate with new product launches, including a smart wearable product line, and has seen significant growth in its smart home segment, with smart home revenue increasing by 68.97% to 328 million yuan [7]. - The cloud platform business is performing well, with revenue growth of 29.97% to 495 million yuan, and an overall gross margin improvement to 43.34% in H1 2024 [7][8]. - The company is expanding its domestic and international sales channels, with overseas revenue reaching 850 million yuan, contributing to a diversified revenue structure [8]. - The financial metrics indicate a stable asset management approach, with a debt-to-asset ratio of 33.99% and a return on equity of 5.25% [7]. Summary by Sections Financial Performance - In H1 2024, the company reported a total revenue of 2.583 billion yuan, with a net profit of 282 million yuan, reflecting a growth of 13.05% and 8.88% respectively [7]. - The second quarter of 2024 saw a revenue of 1.347 billion yuan, a year-on-year increase of 11.64%, but a decline in net profit by 6.64% [7]. Product Development - The company launched multiple new products in the spring of 2024, including a smart wearable line, contributing to a significant increase in smart home product sales [7]. - Revenue from smart cameras was 1.444 billion yuan with a gross margin of 39.41%, while smart home products saw a gross margin increase to 41.46% [7]. Cloud Business - The IoT cloud platform generated 495 million yuan in revenue, with a gross margin of 76.13%, indicating a strong performance and improvement in revenue structure [7][8]. Market Expansion - The company has enhanced its sales channels, with over 40% of domestic sales coming from e-commerce, and has established a presence in over 130 countries, with overseas revenue contributing significantly to total sales [8]. Financial Stability - As of mid-2024, the company had total assets of 7.983 billion yuan, with a debt-to-asset ratio of 33.99%, indicating a solid financial position [8].