Hangzhou EZVIZ Network (688475) EBSCN·2024-11-04 01:11Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 30.98 CNY [4]. Core Views - The company achieved a revenue of 3.963 billion CNY in Q1-Q3 2024, representing a year-on-year increase of 12.93%, while the net profit attributable to shareholders was 375 million CNY, down 6.69% year-on-year [1][2]. - In Q3 2024, the company reported a revenue of 1.379 billion CNY, up 12.7% year-on-year, but the net profit attributable to shareholders fell to 93 million CNY, a decrease of 34.9% year-on-year, primarily due to product structure adjustments and increased competition [1][2]. - The actual controller's subsidiary plans to increase its stake in the company by no less than 200 million CNY and no more than 400 million CNY, reflecting confidence in the company's future development [2]. Financial Performance - The gross margin for Q1-Q3 2024 was 42.88%, a decrease of 0.55 percentage points year-on-year, while the net profit margin was 9.46%, down 1.98 percentage points year-on-year [2]. - The company has upgraded its ecosystem to a "2+5+N" model, focusing on smart home and IoT public cloud as its dual main businesses, with a comprehensive product matrix and industry-leading AI technology [2]. - The forecast for net profit attributable to shareholders has been adjusted to 564 million CNY for 2024 and 712 million CNY for 2025, with a new estimate of 879 million CNY for 2026 [2]. Market Position - The company is positioned as a leader in the smart home and IoT public cloud sectors, with a strong dealer system and a comprehensive product matrix [2]. - The current market capitalization is approximately 24.397 billion CNY, with a P/E ratio of 43x for 2024, 34x for 2025, and 28x for 2026 [4][7].