HIKVISION(SZ:002415)2024-10-29 03:12Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company reported a revenue of 649.9 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 6.1%, while the net profit attributable to shareholders was 81.1 billion yuan, down 8.4% year-on-year [4][5] - Despite weak domestic demand and inventory reduction efforts with distributors, the company demonstrated resilience [5] - The company expects gradual improvement in performance as macroeconomic support policies are implemented [6] Summary by Sections Market Data - Closing price: 30.61 yuan - One-year high/low: 37.75/24.71 yuan - Price-to-book ratio: 3.7 - Dividend yield: 2.94% - Circulating A-share market value: 278,735 million yuan [2] Financial Data - Net asset per share: 8.32 yuan - Asset-liability ratio: 32.96% - Total share capital: 9,233 million shares [3] Revenue and Profit Forecast - Total revenue forecast for 2024: 94,453 million yuan, with a year-on-year growth rate of 5.7% - Net profit forecast for 2024: 13,581 million yuan, with a year-on-year decrease of 3.7% - Earnings per share forecast for 2024: 1.47 yuan [7] Segment Performance - PBG segment showed positive revenue growth in Q3 2024, supported by government-related projects - EBG segment experienced slight revenue growth despite overall investment slowdown - SMBG segment faced significant revenue decline due to weak social demand and tight funding [5] - Overseas business maintained growth, although at a slower pace, with a shift towards project-based sales [5] Profitability and Cost Management - Q3 2024 gross margin was stable at 44.25% - Sales, management, and R&D expenses grew at 11.0%, 3.6%, and 5.2% respectively, with growth rates slowing compared to previous quarters [6] - The company anticipates maintaining low expense growth, which could lead to significant profit elasticity once demand improves [6]