Hangzhou EZVIZ Network (688475) 兴业证券·2024-11-24 01:10Investment Rating - The report assigns an "Overweight" rating to the company, indicating a positive outlook for its stock performance [4][5] Core Views - The company's revenue in 2024Q1-Q3 reached 3,963 million yuan, a year-on-year increase of 12.93%, with steady growth maintained [4] - Smart home entry business has become a star segment, with its revenue share increasing due to strong product recognition and brand influence [4] - AI technology integration with smart devices and IoT cloud services is a key future direction, with R&D expenses in 2024Q1-Q3 reaching 619 million yuan, up 13.45% year-on-year [5] - The company is actively expanding into new markets such as cleaning robots and enhancing e-commerce and new retail channels [4] Financial Performance - Revenue for 2023 was 4,840 million yuan, with projected growth to 7,211 million yuan by 2026, representing a CAGR of 14.1% [3] - Net profit attributable to shareholders in 2023 was 563 million yuan, expected to grow to 856 million yuan by 2026, with a CAGR of 22.7% [3] - Gross margin remained stable at 42.9% in 2023 and 2024E, with a projected increase to 45.1% by 2026 [3] - ROE is expected to rise from 10.7% in 2023 to 12.8% by 2026, reflecting improved profitability [3] Market Data - The company's closing price on 2024-11-20 was 32.80 yuan, with a total market capitalization of 25.83 billion yuan [2] - Total assets stood at 8,156.58 million yuan, with net assets of 5,365.75 million yuan, resulting in a net asset per share of 6.81 yuan [2] Business Strategy - The company is leveraging its self-developed AI models to enhance its dual-core business of "smart home + IoT cloud platform" [5] - Ongoing R&D projects are progressing well, with plans to upgrade and expand home product types and application scenarios [5] Valuation Metrics - The company's PE ratio is projected to decline from 45.9 in 2023 to 30.2 by 2026, indicating improving valuation attractiveness [3] - PB ratio is expected to decrease from 4.9 in 2023 to 3.9 by 2026, reflecting potential undervaluation [8]