HIKVISION(SZ:002415) Zhongyuan Securities·2024-10-28 10:12Investment Rating - The report maintains a "Buy" rating for Hikvision (002415) with an expectation of a relative increase of over 15% compared to the CSI 300 index within the next six months [1][16]. Core Views - The demand for enterprise digitalization continues to grow, with AI applications increasingly being implemented. Despite a slowdown in revenue growth, the gross margin remains stable [1][4]. - The company has established a strong foundation in AI technology, with significant advancements in AI applications, such as the rapid coal quality detection technology developed in collaboration with the National Energy Group [4]. - The report forecasts a decline in revenue and net profit for 2024-2026 due to weak domestic market demand, with projected revenues of 940.97 billion, 1056.29 billion, and 1194.33 billion respectively [5]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved revenue of 649.91 billion, a year-on-year increase of 6.06%, and a net profit of 81.08 billion, up 8.40% year-on-year [1]. - The gross margin for Q3 2024 was reported at 44.76%, a slight decrease of 0.09% year-on-year [1]. - The company’s revenue for Q3 2024 was 237.82 billion, reflecting a year-on-year increase of 0.33% and a quarter-on-quarter increase of 1.67% [1]. Business Segments - The report highlights that the enterprise digitalization demand remains active, particularly in the EBG business, which aids industry clients in digital transformation [1][4]. - The PBG business has shown signs of recovery, with revenue growth expected as special bonds are issued to support projects in water conservancy and disaster management [1][4]. Future Outlook - The report projects revenues for 2024-2026 to be 940.97 billion, 1056.29 billion, and 1194.33 billion respectively, with net profits of 137.60 billion, 160.64 billion, and 185.73 billion [5]. - The earnings per share (EPS) are expected to be 1.49, 1.74, and 2.01 for the years 2024, 2025, and 2026 respectively [5].