HIKVISION(SZ:002415) ZHONGTAI SECURITIES·2024-04-23 01:30Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in stock price compared to the benchmark index over the next 6 to 12 months [8]. Core Views - The company demonstrated steady revenue growth in 2023, achieving operating income of 89.34 billion yuan, a year-on-year increase of 7.42%, and a net profit of 14.11 billion yuan, up 9.89% year-on-year [6]. - In Q1 2024, the company reported operating income of 17.82 billion yuan, a year-on-year increase of 9.98%, although it experienced a quarter-on-quarter decline of 36.5% [6]. - The company is expected to see a trend of improving performance throughout 2024, with anticipated net profits of 16.3 billion yuan, 19 billion yuan, and 22.1 billion yuan for 2024, 2025, and 2026 respectively [6]. Summary by Sections Financial Performance - In 2023, the company achieved a gross margin of 44.4%, up 2.15 percentage points year-on-year, and a net margin of 16.96%, up 0.66 percentage points year-on-year [6]. - The company’s revenue in Q4 2023 reached a record high of 28.06 billion yuan, with a year-on-year growth of 19.71% and a quarter-on-quarter growth of 18.4% [6]. - The company’s revenue forecast for 2024 is 102.6 billion yuan, with a growth rate of 15% year-on-year [5]. Business Segments - The company’s EBG (Enterprise Business Group) and innovative business segments performed well, with EBG revenue reaching 17.84 billion yuan, a year-on-year increase of 8.12% [6]. - The overseas revenue for the company was 23.98 billion yuan, showing a year-on-year growth of 8.83% [6]. - The innovative business segment generated revenue of 18.55 billion yuan, a year-on-year increase of 23.11%, indicating a strong competitive position in digital transformation [6]. Economic Outlook - The report suggests that the domestic economy is gradually stabilizing, which may lead to improved performance in the latter half of 2024 [6]. - The company is focusing on AI capabilities and digital transformation across various industries, which is expected to enhance its growth potential [6].