Hangzhou EZVIZ Network (688475) 国联证券·2024-10-28 13:11Investment Rating - The report maintains a "Buy" rating for the company, citing its strong product capabilities, expansion in smart locks, and leading dual-core business model of "smart home + IoT public cloud" [2][4][6] Core Views - The company's revenue growth accelerated in Q3 2024, with a 12.7% YoY increase to RMB 1.379 billion, despite a challenging environment for the small home appliance and camera industries [6] - The company's profitability experienced short-term fluctuations, with a 34.87% YoY decline in net profit attributable to shareholders in Q3 2024, primarily due to increased competition and necessary investments [6] - The company is actively expanding its product lines, including smart locks and cleaning robots, and is building brand influence both domestically and internationally, particularly in Southeast Asia, Europe, and Latin America [6] - The company's "2+5+N" ecosystem and its transition to the "AI+" stage are expected to drive long-term growth [6] Financial Performance - In Q3 2024, the company's gross margin decreased by 2.3 percentage points YoY to 42.0%, mainly due to product mix adjustments and intensified competition [6] - The company's sales expense ratio increased by 2.1 percentage points YoY in Q3 2024, driven by new product launches and channel expansion [6] - The company's net profit margin attributable to shareholders decreased by 4.9 percentage points YoY to 6.8% in Q3 2024 [6] - The company's revenue for the first three quarters of 2024 reached RMB 3.963 billion, a 12.93% YoY increase, while net profit attributable to shareholders decreased by 6.69% YoY to RMB 375 million [6] Future Projections - The company's revenue is expected to grow to RMB 5.500 billion, RMB 6.629 billion, and RMB 8.061 billion in 2024, 2025, and 2026, respectively, with YoY growth rates of 14%, 21%, and 22% [6] - Net profit attributable to shareholders is projected to be RMB 521 million, RMB 706 million, and RMB 928 million in 2024, 2025, and 2026, with YoY growth rates of -7%, 36%, and 31%, respectively [6] - The company's EPS is expected to be RMB 0.66, RMB 0.90, and RMB 1.18 in 2024, 2025, and 2026, with corresponding P/E ratios of 47x, 35x, and 26x [6] Industry and Market Position - The company operates in the computer/computer equipment industry and has a market capitalization of RMB 12.613 billion [4] - The company's stock price has fluctuated between RMB 24.18 and RMB 58.11 over the past year [4] - The company's overseas market remains a significant source of revenue growth, with increasing brand influence in regions such as Southeast Asia, Europe, and Latin America [6]