Hangzhou EZVIZ Network (SH:688475) Huachuang Securities·2024-04-17 23:31Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [2][15]. Core Insights - The company achieved a revenue of 4.84 billion yuan in 2023, representing a year-on-year increase of 12.39%, and a net profit attributable to shareholders of 563 million yuan, up 68.8% year-on-year [2][3]. - The growth was driven by strong performance in cloud services and overseas markets, with cloud platform services revenue increasing by 27.8% year-on-year [3]. - The gross profit margin improved significantly to 42.85%, up 6.43 percentage points year-on-year, primarily due to the higher margin from cloud services and increased overseas business [3]. - The company is focusing on the smart home sector, launching new AI-driven products, which positions it well for future growth [3]. Financial Performance Summary - Total revenue for 2023 was 4.84 billion yuan, with a projected growth rate of 12.4% for 2024 [4]. - The net profit for 2023 was 563 million yuan, with a forecasted increase to 783 million yuan in 2024, reflecting a growth rate of 39.2% [4]. - The earnings per share (EPS) for 2023 was 1.00 yuan, expected to rise to 1.39 yuan in 2024 [4]. - The company’s price-to-earnings (P/E) ratio is projected to decrease from 45 in 2023 to 33 in 2024, indicating improved valuation metrics [4]. Business Segment Performance - The smart home product segment generated 3.96 billion yuan in revenue, growing by 10.1% year-on-year, with significant contributions from smart cameras and other products [3]. - Cloud services revenue reached 860 million yuan, with a notable 40.1% increase in B-end revenue, highlighting the segment's strong growth potential [3]. - The overseas market contributed 1.51 billion yuan in revenue, marking a 24.8% increase year-on-year, with exports accounting for 31.4% of total revenue [3].