Hangzhou EZVIZ Network (688475) Minsheng Securities·2024-10-29 07:14Investment Rating - The report maintains a "Recommended" rating for the company [1][3]. Core Views - The company reported a revenue of approximately 39.63 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 12.93%. However, the net profit attributable to shareholders decreased by 6.69% to approximately 3.75 billion yuan [1]. - In Q3 2024, the company achieved a revenue of 13.79 billion yuan, a year-on-year growth of 12.7%, while the net profit attributable to shareholders was approximately 0.93 billion yuan, down 34.87% year-on-year. This decline is attributed to product structure adjustments and increased competition, which led to a decrease in gross margin [1]. - The company is actively launching new products and expanding into the e-commerce and new retail channels, which has resulted in increased expenses but is expected to drive long-term growth [1]. - The introduction of the "Blue Ocean Large Model" and "HomePlay OS" aims to enhance the company's business value across various scenarios, indicating a strategic shift towards AI capabilities [1]. Financial Summary - For 2024, the company forecasts net profits of 5.74 billion yuan, 7.18 billion yuan, and 9.60 billion yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 43X, 34X, and 26X [1][4]. - The projected revenue growth rates for the years 2024 to 2026 are 12.39%, 13.21%, and 17.02% respectively [4]. - The net profit growth rates for the same period are expected to be 68.80%, 1.93%, and 25.04% [4].