Hangzhou EZVIZ Network (688475)2024-02-25 16:00Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported a revenue of 4.84 billion yuan for 2023, representing a year-on-year growth of 12.4%, and a net profit attributable to shareholders of 563 million yuan, up 68.8% year-on-year [5] - The significant profit growth outpaced revenue growth due to structural optimization, management improvements, and cost reductions, with a gross margin of 43.4% in the first three quarters of 2023, an increase of 7.4 percentage points year-on-year [5] - The company is positioned as a leader in AI multimodal models, with a focus on high-margin businesses such as cloud platforms and overseas operations, which are expected to drive revenue growth [5] - The commitment from a major shareholder not to reduce holdings until July 2024 reinforces market confidence [5] - Short-term growth is driven by a substantial increase in gross margin, while medium-term prospects are bolstered by the monetization of AI SaaS algorithm packages [5] Summary by Sections Financial Performance - For 2023, the company achieved a revenue of 4.84 billion yuan and a net profit of 563 million yuan, with a gross margin of 43.4% [5][7] - The forecast for net profit for 2024 and 2025 is 718 million yuan and 965 million yuan, respectively, with corresponding PE ratios of 35 and 26 [5][7] Business Strategy - The company is enhancing its product offerings in smart home technology and AI, with new product launches expected to further drive growth [5] - The focus on cloud services and embodied intelligence products, such as cleaning and companion robots, is anticipated to yield significant growth potential [5] Market Position - The company is recognized for its strong capabilities in data and multimodal technology, positioning it well in the competitive landscape of smart home and AI solutions [5]