Hangzhou EZVIZ Network (SH:688475) Tai Ping Yang·2024-10-31 13:32Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on the last closing price of 31.16 [1][5]. Core Insights - The company achieved a revenue of 39.63 billion yuan in the first three quarters of 2024, representing a year-on-year growth of 12.95%. However, the net profit attributable to shareholders decreased by 6.65% to 3.75 billion yuan [1]. - In Q3 2024, the company reported a revenue of 13.79 billion yuan, reflecting a robust growth of 12.73%, driven by the strong performance of its smart lock business and the rapid growth of service robots [1]. - The report highlights that the company's profitability faced short-term pressure, with a net profit of 0.93 billion yuan in Q3 2024, down 34.85% due to rising raw material costs and increased expenses [1]. - The report anticipates continued growth in revenue and profitability, projecting net profits of 6.45 billion yuan, 8.02 billion yuan, and 9.95 billion yuan for 2024, 2025, and 2026, respectively [2][3]. Financial Summary - The company’s revenue is expected to grow from 48.40 billion yuan in 2023 to 56.99 billion yuan in 2024, with a growth rate of 12.39% in 2023 and 17.75% in 2024 [2][3]. - The diluted earnings per share (EPS) are projected to be 0.82 yuan in 2024, increasing to 1.26 yuan by 2026, with corresponding price-to-earnings (PE) ratios of 38.04 and 24.66 [2][3]. - The gross margin for Q3 2024 was reported at 42.01%, a decrease of 2.29 percentage points, attributed to high raw material costs and changes in product mix [1]. Management and Shareholder Confidence - The controlling shareholder, Electric Science Group, has expressed confidence in the company's long-term development by planning to increase its stake in the company by investing between 200 million yuan and 400 million yuan within six months [1][3].