Zhejiang Dahua Technology (002236) 民生证券·2024-05-03 01:30Investment Rating - The report maintains a "Recommend" rating for Dahua Technology (002236 SZ) [2][3] Core Views - Dahua Technology achieved revenue of RMB 32 218 billion in 2023, a year-on-year increase of 5 41%, with net profit attributable to the parent company reaching RMB 7 362 billion, a significant increase of 216 73% [2] - The company's AIoT and intelligent IoT platform strategies have driven business optimization, with smart IoT products and solutions generating RMB 266 45 billion in revenue, up 5 79% year-on-year [2] - Innovation businesses, including machine vision, mobile robots, and automotive electronics, contributed RMB 49 07 billion in revenue, a 19 20% increase [2] - Overseas revenue accounted for 47 57% of total revenue, with the company expanding its global presence through 69 overseas branches and over 1,000 service partners [2] - The company's R&D investment reached RMB 3 967 billion in 2023, accounting for 12 31% of revenue, focusing on AI, big data, and cloud computing [2] Financial Performance and Forecast - For 2024-2026, the report forecasts EPS of RMB 1 16, 1 37, and 1 58, respectively, with corresponding P/E ratios of 15x, 13x, and 11x [2][3] - Revenue is expected to grow to RMB 35 501 billion in 2024, RMB 39 779 billion in 2025, and RMB 45 193 billion in 2026, with growth rates of 10 19%, 12 05%, and 13 61%, respectively [5] - Net profit attributable to the parent company is projected to be RMB 3 824 billion in 2024, RMB 4 511 billion in 2025, and RMB 5 200 billion in 2026 [5] - The company's gross margin is expected to remain stable at around 42% over the forecast period [5] Business Highlights - Dahua Technology's software business grew by 21 59% in 2023, reaching RMB 1 797 billion in revenue [2] - The company launched the Xinghan AI model, enhancing its visual analysis capabilities through multimodal data integration [2] - Domestic revenue accounted for 52 43% of total revenue, with marketing centers covering 100% of provinces and 70% of counties in China [2] - The company established a Future Communications Research Institute to advance IoT and visual networking technologies [2] Valuation and Metrics - The current price of Dahua Technology is RMB 17 99, with a P/E ratio of 15x for 2024 [3] - The company's ROE is expected to be 10 67% in 2024, 11 17% in 2025, and 11 41% in 2026 [5] - The dividend yield is projected to be 3 85% in 2024, increasing to 4 56% in subsequent years [6]