Hangzhou EZVIZ Network (SH:688475) ZHONGTAI SECURITIES·2025-09-09 11:25Investment Rating - The investment rating for the company is "Buy" (maintained) [1][6] Core Views - The company is experiencing growth driven by smart home solutions and cloud services, with AI enhancing high-margin business profitability [1] - The company has successfully entered the smart home market, leveraging its AI visual technology capabilities inherited from its parent company, Hikvision [3] - The dual-driven model of smart home hardware and cloud services positions the company for potential growth as an ecosystem-level enterprise [3] Financial Performance Summary - For the first half of 2025, the company achieved revenue of 2.827 billion yuan, a year-on-year increase of 9.45%, and a net profit of 302 million yuan, up 7.38% year-on-year [3] - The smart home segment led revenue growth, with smart home cameras generating 1.548 billion yuan (54.75% of total revenue) and a gross margin of 39.07% [3] - The cloud service segment reported revenue of 555 million yuan, accounting for 19.63% of total revenue, with a gross margin of 72.09% [3] Revenue and Profit Forecast - The company forecasts revenues of 5.442 billion yuan for 2024, 6.181 billion yuan for 2025, and 7.065 billion yuan for 2026, with a compound annual growth rate of 14% [1] - Net profit is projected to be 615 million yuan in 2025 and 754 million yuan in 2026, reflecting a growth rate of 22% [1][3] Valuation Metrics - The price-to-earnings (P/E) ratio is expected to decrease from 52.6 in 2024 to 43.1 in 2025, indicating improving valuation [1] - The price-to-book (P/B) ratio is projected to decline from 4.8 in 2024 to 4.5 in 2025 [1] Strategic Initiatives - The company is enhancing its product offerings with the launch of the self-developed AI facial recognition video lock, which integrates personalized AI capabilities [3] - The company is focusing on channel construction and improving its retail matrix both domestically and internationally [3]