Hangzhou EZVIZ Network (SH:688475) Donghai Securities·2024-04-19 12:00Investment Rating - The report maintains an "Accumulate" rating for the company [3] 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 68.80% year-on-year [10] - The smart camera business remains a core strength, with revenue of 2.99 billion yuan in 2023, a growth of 2.99% year-on-year, and a gross margin increase of 7.62 percentage points to 38.59% [10] - The IoT cloud platform business saw revenue growth of 27.79% year-on-year, reaching 856 million yuan, with a gross margin of 76.09% [10] - The company is expanding both domestic and international channels, with overseas business contributing 31.40% to total revenue [10] - The company’s gross margin improved by 6.43 percentage points to 42.85% in 2023, driven by supply chain management and reduced raw material costs [10] Summary by Sections Financial Performance - In Q1 2024, the company reported a revenue of 1.24 billion yuan, a year-on-year increase of 14.61%, and a net profit of 125 million yuan, up 37.38% year-on-year [10] - The total assets and net assets as of the end of 2023 increased by 14.05% and 8.31% respectively [11] - The company’s operating cash flow increased by 31.95% year-on-year [11] Product Development - The company continues to maintain its leading position in home cameras, with the brand ranking first on Tmall for eight consecutive years [10] - New product launches in the cleaning robot segment target both consumer and commercial markets [10] Future Projections - The report adjusts the net profit forecasts for 2024 and 2025 to 714 million yuan and 870 million yuan respectively, with an introduction of a 2026 forecast of 1.02 billion yuan [10] - Expected EPS for 2024, 2025, and 2026 are projected at 1.00 yuan, 1.27 yuan, and 1.55 yuan respectively, with corresponding P/E ratios of 44.71X, 35.20X, and 28.90X [12]