Zhejiang Dahua Technology (SZ:002236) Tianfeng Securities·2025-04-02 04:16Investment Rating - The investment rating for the company is "Buy" with a target price indicating an expected relative return of over 20% within six months [7][19]. Core Insights - The company reported a slight decrease in revenue for 2024, achieving 32.18 billion, a year-on-year decline of 0.12%. However, net profit attributable to shareholders fell significantly by 60.53% to 2.91 billion, representing 9.03% of revenue [1][2]. - The company's To G business faced challenges due to cautious local government investments and a slowdown in traditional industry demand, resulting in a revenue drop of 6.37% to 4.06 billion. The To B business also saw a decline of 4.15% to 8.71 billion due to global economic slowdown and intensified competition [2]. - Despite the revenue decline, the company's gross margin was 38.84%, down 3.2 percentage points year-on-year, reflecting the uncertain macroeconomic environment and increased industry competition. However, equity attributable to shareholders increased by 3.77%, and R&D expense ratio rose by 0.78 percentage points, indicating a foundation for long-term development [2]. - The company’s innovative business segments, particularly in machine vision and mobile robotics, showed resilience with a revenue increase of 13.44% to 5.57 billion, accounting for 17.30% of total revenue. Additionally, overseas business revenue grew by 6.31% to 16.29 billion, driven by strong demand in emerging economies [3]. - The company is focusing on AI applications, having developed the "1+2" AI capability system and launched the Xinghan Model 2.0, which enhances language, multimodal, and visual capabilities. This positions the company to capitalize on the growing demand for digital transformation in various industries [4]. Financial Summary - For 2024, the company’s revenue is projected to be 32.18 billion, with a slight decline from the previous year. The net profit attributable to shareholders is expected to be 2.91 billion, a significant decrease from 7.36 billion in 2023 [6][14]. - The company anticipates a recovery in 2025 with a projected net profit of 3.42 billion, reflecting a growth rate of 17.63%. By 2026, net profit is expected to reach 4.39 billion, with a further increase to 4.95 billion in 2027 [5][6]. - The company's EBITDA for 2024 is estimated at 7.24 billion, with a significant drop from 12.13 billion in 2023. The EBITDA margin is expected to improve in the following years as the company stabilizes its operations [6][14].