HIKVISION(SZ:002415) Guoyuan Securities·2025-08-07 09:13Investment Rating - The report maintains a "Buy" rating for Hikvision Technology Co., Ltd. (002415.SZ) [6][10] Core Views - The company achieved stable revenue growth with significant improvement in net cash flow from operating activities. In the first half of 2025, the company reported revenue of 41.818 billion yuan, a year-on-year increase of 1.48%, and a net profit attributable to shareholders of 5.657 billion yuan, up 11.71% year-on-year [1][4] - The company is shifting its focus from revenue to profit, emphasizing profit-centered operations and embracing AI to enhance operational efficiency. This includes organizational changes and a focus on digital transformation [3][4] Summary by Sections Financial Performance - In the first half of 2025, the company achieved a gross profit margin of 45.19%, with the main business products and services gross margin reaching 48.52%, an increase of 2.19 percentage points year-on-year [1] - The company's cash flow from operating activities was 5.343 billion yuan, a significant improvement from a cash outflow of 190 million yuan in the same period last year [1] Business Segments - Domestic main business revenue totaled 17.821 billion yuan, a year-on-year decrease of 8.33%. The Public Service Business Group (PBG) generated revenue of 5.573 billion yuan, down 2.11%, while the Enterprise Business Group (EBG) reported revenue of 7.462 billion yuan, a slight decline of 0.36%. The Small and Medium Business Group (SMBG) saw a revenue drop of 29.75% to 4.067 billion yuan [2] - International main business revenue reached 12.231 billion yuan, an increase of 6.90%. Innovative business revenue was 11.766 billion yuan, up 13.92%, accounting for 28% of the company's total business, driven by the domestic 3C industry and sectors like new energy vehicles and lithium batteries [2] Profit Forecast and Investment Recommendations - The report adjusts the revenue forecast for 2025-2027 to 95.139 billion, 101.348 billion, and 108.437 billion yuan, respectively. The net profit forecast is adjusted to 13.346 billion, 14.633 billion, and 16.266 billion yuan, respectively, with corresponding EPS of 1.45, 1.58, and 1.76 yuan per share [4][8] - The report highlights the company's comprehensive advantages in technology, products, and solutions, indicating a broad growth space in the future, thus maintaining the "Buy" rating [4]