Hangzhou EZVIZ Network (SH:688475) Haitong Securities·2024-04-18 06:01Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company reported a revenue of 4.84 billion yuan in 2023, representing a year-on-year growth of 12.39%, with a net profit attributable to shareholders of 563 million yuan, up 68.80% year-on-year [5][6] - The revenue for Q4 2023 was 1.33 billion yuan, a 13.87% increase year-on-year, with a net profit of 161 million yuan, growing 41.11% year-on-year [5] - In Q1 2024, the company achieved a revenue of 1.24 billion yuan, a 14.61% increase year-on-year, and a net profit of 125 million yuan, up 37.38% year-on-year [5] - The company announced a dividend of 5 yuan per 10 shares for 2023, with a payout ratio of 50% [5] Summary by Sections Smart Home Products - The smart home product segment generated revenue of 3.96 billion yuan in 2023, growing 10.09% year-on-year, with smart entry products seeing a revenue increase of 49% [6] - The revenue contribution from smart entry products to the smart home segment rose to 13% [6] IoT Cloud Platform - The IoT cloud platform generated revenue of 856 million yuan, a year-on-year increase of 27.79%, with its revenue contribution rising to 17.69% [6] - The C-end value-added service revenue was 432 million yuan, while B-end developer service revenue was 424 million yuan [6] Profitability - The gross margin for smart home products improved by 6.02 percentage points to 35.86%, while the gross margin for the IoT cloud platform increased by 3.66 percentage points to 76.09% [6] - The overall gross margin for the company rose by 6.44 percentage points to 42.85% [6] - The net profit margin for 2023 increased by 3.90 percentage points to 11.63%, with Q1 2024 continuing the upward trend [6] Financial Forecast - The company is expected to achieve net profits of 718 million yuan, 901 million yuan, and 1.10 billion yuan for 2024, 2025, and 2026, respectively [6][10] - The estimated P/E ratio for 2024 is projected to be between 35-38 times, corresponding to a fair value range of 44.8 yuan to 48.64 yuan [6]