Hangzhou EZVIZ Network (688475) Guolian Securities·2024-02-25 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 50.13 CNY, based on a 40x PE for 2024 [6][7]. Core Views - The company achieved a revenue of 4.84 billion CNY in 2023, representing a year-on-year growth of 12.39%, and a net profit of 563 million CNY, which is a significant increase of 68.80% year-on-year [3][4]. - The growth in the camera business and new channels contributed positively to the company's performance, with online sales of consumer-grade surveillance cameras increasing by 9.8% [4]. - The company is expanding its domestic and international channels, which is expected to support long-term growth [5]. Financial Performance Summary - In 2023, the company reported a revenue of 48.40 billion CNY, with a net profit of 5.63 billion CNY and a non-recurring net profit of 5.53 billion CNY, showing substantial growth compared to previous years [3][4]. - The gross margin improved due to cost optimization and an increase in the proportion of high-margin cloud services and overseas business [4]. - The company forecasts revenues of 58.83 billion CNY and 71.54 billion CNY for 2024 and 2025, respectively, with net profits of 7.05 billion CNY and 8.77 billion CNY, indicating a compound annual growth rate (CAGR) of 38.09% from 2022 to 2025 [6][7].