HIKVISION(SZ:002415) Guolian Securities·2024-10-29 02:12Investment Rating - The investment rating for Hikvision is maintained at "Buy" [2][4]. Core Views - Hikvision reported a revenue of 64.991 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 6.06%. However, the net profit attributable to shareholders decreased by 8.40% to 8.108 billion yuan. The domestic demand is under pressure while the overseas market remains stable, leading to short-term performance challenges. Given that the company is a leader in the global security industry, business is expected to gradually improve with support from fiscal policies [2][6]. Summary by Sections Financial Performance - For Q3 2024, Hikvision achieved a revenue of 23.782 billion yuan, a year-on-year increase of 0.33%. The net profit attributable to shareholders was 3.044 billion yuan, down 13.37% year-on-year. The gross margin for Q3 was 44.25%, a slight decrease of 0.07 percentage points [6][7]. Business Segments - Domestic business showed positive revenue growth in the PBG segment, supported by government funding in areas like water conservancy and disaster management. The EBG segment maintained slight growth driven by digitalization needs. However, the SMBG segment experienced a notable decline as the company actively reduced inventory with distributors. The overseas business continued to grow, albeit at a slower pace, with all four major business centers reporting positive growth [6][7]. Future Outlook - The company expects revenues of 95.141 billion yuan, 105.552 billion yuan, and 118.236 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 6.49%, 10.94%, and 12.02%. The net profit attributable to shareholders is projected to be 14.288 billion yuan, 16.598 billion yuan, and 18.796 billion yuan for the same years, with growth rates of 1.28%, 16.17%, and 13.24% respectively. The EPS is expected to be 1.55 yuan, 1.80 yuan, and 2.04 yuan per share, with a three-year CAGR of 10.04% [6][7].