Zhejiang Dahua Technology (SZ:002236) Huachuang Securities·2025-03-31 08:44Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [4][19]. Core Insights - The company reported a slight decline in revenue for 2024, with total revenue of 32.181 billion yuan, down 0.12% year-on-year. The net profit attributable to the parent company was 2.906 billion yuan, a significant drop of 60.53% year-on-year [1][3]. - The decline in profit is attributed to the sale of equity in Zero Run Technology, a decrease in gross margin, and increased R&D expenses. The gross margin for 2024 was 38.84%, down 2.80 percentage points year-on-year [8]. - The company’s innovative business segment achieved revenue of 5.566 billion yuan, growing by 13.44% year-on-year, reflecting a focus on diversifying customer needs and exploring emerging businesses [8]. - The strategic focus on AIoT and smart platforms is expected to support urban digital innovation and enterprise digital transformation, integrating AI, big data, and IoT technologies [8]. - The revenue forecast for 2025-2027 is adjusted to 34.514 billion yuan, 36.974 billion yuan, and 39.595 billion yuan, with corresponding growth rates of 7.3%, 7.1%, and 7.1% respectively [8]. Financial Summary - For 2024, the company’s total revenue is projected at 32.181 billion yuan, with a net profit of 2.906 billion yuan and an EPS of 0.88 yuan. The P/E ratio is estimated at 19 times [3][9]. - The company’s total assets are expected to grow from 52.736 billion yuan in 2024 to 61.030 billion yuan by 2027, with a debt-to-equity ratio of 4.8% in 2024 [9]. - The gross margin is projected to improve slightly to 39.6% in 2025, with net profit margins increasing to 9.8% by 2025 [9].