Zhejiang Dahua Technology (SZ:002236) Guoyuan Securities·2025-04-12 12:59Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% compared to the benchmark index [4][6]. Core Views - The company reported a slight decline in revenue for 2024, with total revenue at 32.18 billion yuan, down 0.12% year-on-year, and a significant drop in net profit by 60.53% to 2.91 billion yuan, primarily due to the impact of selling equity in 2023 [1][2]. - Despite domestic business challenges, overseas and innovative segments showed resilience, with overseas revenue growing by 6.31% to 16.29 billion yuan and innovative business revenue increasing by 13.44% to 5.57 billion yuan [2][3]. - The company continues to invest heavily in R&D, with expenditures reaching 4.21 billion yuan, representing 13.09% of revenue, focusing on AI and other advanced technologies [3][4]. Summary by Sections Financial Performance - In 2024, the company achieved total revenue of 32.18 billion yuan, with a net profit of 2.91 billion yuan and a non-recurring net profit of 2.35 billion yuan, reflecting a year-on-year decline of 20.74% [1][7]. - The gross margin for the year was 38.84%, down 2.8% from the previous year, influenced by demand contraction and increased competition [1][2]. Business Segments - Domestic revenue fell by 5.95% to 15.89 billion yuan, with government business down 6.37% to 4.06 billion yuan due to low investment and local debt pressures [2]. - The enterprise business also saw a decline of 4.15% to 8.71 billion yuan, while the overseas business showed growth, reaching 16.29 billion yuan [2]. R&D and Innovation - The company maintained a strong focus on R&D, with a budget of 4.21 billion yuan, up 6.20% year-on-year, emphasizing AI and multi-dimensional perception technologies [3]. - The company is advancing its AI capabilities with the launch of various models, including visual, language, and multi-modal AI models [3]. Profit Forecast - The forecast for 2025-2027 indicates revenue growth to 34.53 billion yuan in 2025, with net profit expected to rise to 3.19 billion yuan in 2025, reflecting a recovery trend [4][7].