Zhejiang Dahua Technology (SZ:002236) Haitong Securities·2024-04-21 03:32Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company has upgraded its Dahua Think2.0 strategy, achieving a significant increase in net profit attributable to the parent company by 216.73% year-on-year, with a non-GAAP net profit increase of 87.39% [8][12] - The company focuses on integrated intelligence and continues to enhance its AIoT and data intelligence platform capabilities, which are expected to drive long-term growth [11][12] - The company emphasizes technological innovation and has invested 3.967 billion yuan in R&D, accounting for 12.31% of its revenue in 2023 [11][12] Financial Performance - In 2023, the company achieved operating revenue of 32.218 billion yuan, a year-on-year increase of 5.41%, and a gross profit margin of 42.04%, up by 4.17 percentage points [8][10] - The forecast for operating revenue is expected to grow to 36.576 billion yuan in 2024, with a year-on-year growth rate of 13.5% [10][12] - The projected net profit for 2024 is 3.996 billion yuan, with an EPS of 1.21 yuan [10][12] Market and Product Performance - The smart IoT products and solutions generated revenue of 26.645 billion yuan in 2023, a year-on-year increase of 5.79%, with software business revenue growing by 21.59% [9] - The company has optimized its global marketing and service system, achieving a revenue of 16.891 billion yuan domestically, up by 6.91%, and 15.327 billion yuan overseas, up by 3.80% [9] Strategic Focus - The company is committed to AI as a core strategy, aiming to enhance its AI capabilities and provide comprehensive solutions for urban and enterprise digital transformation [12] - The company has established a "1+2" AI capability system, focusing on algorithm supply and customer experience [12][11]