Investment Rating - The investment rating for Hikvision (002415.SZ) is "Outperform the Market" [6]. Core Views - The company is experiencing a mild recovery in revenue and net profit in Q1 2025, with revenue reaching 18.53 billion yuan (YoY +4.0%) and net profit at 1.926 billion yuan (YoY +9.44%) [1]. - The company is focusing on cost reduction and efficiency improvement, with a strategic shift in its domestic business to enhance profitability [3]. - The innovation and overseas business segments are showing strong growth, contributing to over 50% of total revenue in 2024 [2]. Summary by Sections Financial Performance - In 2024, the company achieved revenue of 92.496 billion yuan (YoY +3.53%) and a net profit of 11.977 billion yuan (YoY -15.1%), with a gross margin of 43.83% [1]. - For Q1 2025, the company reported a net cash flow from operating activities increasing by 56.19% [1]. Business Segments - The overseas revenue in 2024 was 31.895 billion yuan, up 10.1%, accounting for 34.48% of total revenue, with significant growth in non-video products [2]. - The innovation business generated 22.484 billion yuan in 2024, growing by 21.2% and representing 24% of total revenue, with notable growth in various segments such as robotics and automotive electronics [2]. Domestic Market Adjustments - The domestic PBG revenue was 13.467 billion yuan in 2024, down 12.29%, affected by local fiscal pressures [3]. - The EBG revenue was 17.651 billion yuan, down 1.09%, while SMBG revenue was 11.971 billion yuan, down 5.58% [3]. - The company is actively managing inventory levels with distributors to promote healthy channel development [3]. Future Outlook - The company expects to maintain operational resilience and long-term growth driven by industry digitalization, with revised net profit forecasts for 2025-2027 at 13.237 billion, 14.517 billion, and 16.664 billion yuan respectively [4]. - The projected PE ratios for 2025-2027 are 20, 18, and 16 times [4].

Investment Rating - The report maintains a "Buy" rating for Hikvision Technology Co., Ltd. (002415.SZ) with a target price of 28.18 CNY per share [7]. Core Views - The company's revenue for 2024 reached 92.496 billion CNY, a year-on-year increase of 3.53%, while the net profit attributable to shareholders decreased by 15.10% to 11.977 billion CNY. The innovative business segments are growing rapidly, contributing significantly to overall performance [2][4]. - In Q1 2025, the company reported a revenue of 18.532 billion CNY, up 4.01% year-on-year, and a net profit of 2.039 billion CNY, an increase of 6.41% [2]. - The innovative business accounted for 24.31% of total revenue, with Hikrobot, Ezviz, and Hikvision Micro Imaging leading in their respective fields [4]. Summary by Sections Financial Performance - In 2024, total revenue was 92.496 billion CNY, with a 3.53% increase year-on-year. The net profit attributable to shareholders was 11.977 billion CNY, down 15.10% [2]. - For Q1 2025, revenue was 18.532 billion CNY, reflecting a 4.01% increase, while net profit was 2.039 billion CNY, up 6.41% [2]. Business Segments - The Public Service Business Group (PBG) generated 13.467 billion CNY, a decrease of 12.29%, while the Enterprise Business Group (EBG) achieved 17.651 billion CNY, down 1.09%. The overseas business grew by 8.39% to 25.989 billion CNY [3]. - The innovative business segments, including Hikrobot and Ezviz, are becoming key growth drivers, with Hikrobot focusing on industrial IoT and smart logistics [4]. Profitability Forecast - The company forecasts revenues of 98.696 billion CNY, 106.732 billion CNY, and 115.307 billion CNY for 2025, 2026, and 2027, respectively. The net profit is expected to be 13.133 billion CNY, 14.601 billion CNY, and 16.222 billion CNY for the same years [5][8]. - The earnings per share (EPS) is projected to be 1.42 CNY, 1.58 CNY, and 1.76 CNY for 2025, 2026, and 2027, with corresponding price-to-earnings (P/E) ratios of 19.81, 17.82, and 16.04 [5][8].

Investment Rating - The investment rating for Hangzhou Hikvision Digital Technology is Neutral, with a target price adjusted to Rmb30 from Rmb33, reflecting a 5.7% expected return [4][21][22]. Core Insights - The company reported 4Q24 results that were in line with preliminary results, with a revenue decrease of 2% YoY to Rmb27.5 billion and a net profit decline of 26% YoY to Rmb3.9 billion [2][10]. - For 1Q25, revenue increased by 4% YoY to Rmb18.5 billion, although it was below expectations [1][11]. - Management plans to focus on higher-margin businesses and maintain strict control over operating expenses [8][21]. - There is an expectation of muted recovery in domestic business for FY25, while overseas and innovative business segments are anticipated to grow stronger [8][21]. Summary by Sections Financial Performance - 4Q24 revenue was Rmb27.5 billion, down 2% YoY, with a gross margin of 41%, down 1.9 percentage points YoY [2][10]. - 1Q25 revenue rose to Rmb18.5 billion, with a gross margin of 43.9%, down 0.8 percentage points [1][11]. - FY24 revenue for the PBG segment decreased by 12% YoY, while the innovation business grew by 21.2% YoY to Rmb22.5 billion [2][10]. Earnings Estimates - FY25-26 earnings estimates have been cut by 11-16% due to lower revenue and margin assumptions [9][13]. - The new revenue estimate for FY25 is Rmb98.986 billion, down 3.2% from the previous estimate [13][14]. Market Position and Strategy - Hikvision is the world's largest supplier of video surveillance products, focusing on innovation and expanding its overseas business [20][21]. - The company has ceased shipments to the US, which previously accounted for about 3-4% of sales, with limited expected impact on overall business [8][21]. Valuation Metrics - The target price of Rmb30 is based on a 20.2x NTM PE, which aligns with the company's 10-year historical average [4][22]. - Current market capitalization is Rmb261.946 billion [4].

| About Hikvision | 02 | | --- | --- | | Message from the Management | 03 | ESG Management | ESG Philosophy | 05 | | --- | --- | | ESG Governance Framework | 06 | | Identification of Material Topics | 07 | | Risk Management | 10 | | Stakeholder Communication | 11 | | Honors and Awards | 12 | ESG Spotlight Tech for Good | Tech for Homeland | 15 | | --- | --- | | Tech for Environment | 17 | | Tech for Industry | 20 | | Tech for Community | 24 | | Tech for Culture | 27 | | Appendix 1: Key Performance | 110 | | ...

Investment Rating - The investment rating for the company is "Accumulate" with a target price of 39.96 CNY per share [5][11]. Core Insights - The company faced performance pressure in 2024 but has shown signs of recovery in Q1 2025. The overseas and innovation businesses have become significant growth pillars, and the future development is promising, especially with the emphasis on AI [2][11]. - In 2024, the company achieved a revenue of 92.5 billion CNY, a year-on-year increase of 3.5%, while the net profit attributable to the parent company was 11.98 billion CNY, a decrease of 15.1%. However, in Q1 2025, revenue reached 18.53 billion CNY, up 4.01%, and net profit was 2.04 billion CNY, up 6.41% [11]. - The combined revenue from overseas and innovation businesses exceeded 50% of total revenue for the first time in 2024, indicating a shift in the company's growth strategy [11]. Financial Summary - The company’s projected financials show a steady increase in revenue from 89.34 billion CNY in 2023 to 117.62 billion CNY by 2027, with a compound annual growth rate (CAGR) of approximately 10.3% [4][12]. - Net profit is expected to recover from 11.98 billion CNY in 2024 to 17.39 billion CNY by 2027, reflecting a significant growth trajectory [4][12]. - The earnings per share (EPS) is projected to increase from 1.30 CNY in 2024 to 1.88 CNY in 2027, with a price-to-earnings (P/E) ratio of 28 times for 2025 [11][12]. Business Performance - The company's main business segments, including PBG, EBG, and SMBG, experienced revenue declines in 2024, but the overseas and innovation segments showed strong growth, with overseas revenue at 25.99 billion CNY, up 8.39%, and innovation revenue at 22.48 billion CNY, up 21.19% [11]. - The AI initiatives are expected to enhance the company's capabilities, with advancements in multi-modal algorithms and applications in various sectors such as traffic congestion diagnosis and supply chain optimization [11].

Core Viewpoint - Hikvision collaborates with Zhenjiang Jin Gang Port Company to enhance the efficiency of belt conveyor inspections through large model and IoT perception technologies, significantly improving inspection efficiency and reducing safety risks for personnel and equipment [1] Group 1: Technology Implementation - The application of visual large models has improved target detection rates and reduced false alarm rates, enhancing intelligent recognition capabilities [2] - A self-cleaning camera installed above the belt can observe the belt's operation clearly in dusty environments, while an AI algorithm analyzes the belt's deviation status and provides timely warnings to prevent equipment damage, potentially saving over 300,000 yuan annually in cleaning costs due to deviations [2] - The drop accumulation detection model identifies when material accumulates to a certain level and sends alerts for timely cleaning, preventing disruptions to the belt's operation [2] Group 2: Smart Port Platform - Hikvision has developed a smart port platform for Zhenjiang Jin Gang Port Company, creating a dynamic digital twin of the port that integrates data from various sources into existing business processes [3] - The platform utilizes three-dimensional scene technology to replicate physical elements of the port, providing robust support for efficient management and decision-making [3] - The platform also incorporates DeepSeek, which uses natural language processing capabilities to facilitate interactions through simple text commands, acting as an "intelligent assistant" for management tasks [3] Group 3: Operational Efficiency - The project signifies a shift from on-site operations to centralized control, improving the working environment for personnel and reducing operational costs for the company [3] - This new operational model is expected to inject new intelligent momentum into the company's high-quality development [3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 43.92 CNY based on a 24x PE valuation for 2026 [2][5][11]. Core Insights - The company has shown stability in its business operations in Q1, with a focus on expanding application scenarios for large models [1]. - Revenue for 2024 is projected to grow by 4% to 92.5 billion CNY, while net profit is expected to decline by 15% to 12 billion CNY [10]. - The innovative business segment has seen significant growth, with a 21% increase in revenue to 22.5 billion CNY, accounting for 24% of total revenue [10]. Financial Forecasts - Earnings per share (EPS) are forecasted to be 1.57 CNY, 1.83 CNY, and 2.12 CNY for the years 2025 to 2027, respectively [2][11]. - The company’s revenue is expected to reach 130.4 billion CNY by 2027, with a consistent growth rate of 12% from 2025 to 2027 [4][10]. - The gross margin is projected to stabilize around 44% over the forecast period [4][10]. Performance Metrics - The company’s operating profit for 2025 is estimated at 17.2 billion CNY, reflecting a 20% year-on-year growth [4][10]. - The net profit margin is expected to improve slightly to 15% by 2027 [4][10]. - The return on equity (ROE) is projected to increase to 18.4% by 2027 [4][10].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 43.92 CNY based on a 24x PE valuation for 2026 [2][11]. Core Insights - The company has shown stability in its business operations in Q1, with a focus on expanding application scenarios for large models [1]. - Revenue for 2024 is projected to grow by 4% to 92.5 billion CNY, while net profit is expected to decline by 15% to 12 billion CNY [10]. - The innovative business segment has seen a significant growth rate of 21%, contributing to 24% of total revenue [10]. Financial Forecasts - The company’s earnings per share (EPS) are forecasted to be 1.57 CNY, 1.83 CNY, and 2.12 CNY for the years 2025 to 2027, respectively [2][11]. - Revenue is expected to reach 130.4 billion CNY by 2027, with a consistent growth rate of 12% from 2025 onwards [4][10]. - The gross margin is projected to stabilize around 44% over the forecast period [4][10]. Business Performance - The company reported a 4% year-on-year revenue increase in Q1 2025, amounting to 18.5 billion CNY, with a net profit growth of 6% to 2.04 billion CNY [10]. - The overseas business segment has shown resilience, with an 8% revenue increase to 26 billion CNY in 2024, and a gross margin of 46.1% [10]. Innovation and Technology - The company is leveraging large model technology to enhance product lines and expand application scenarios, significantly improving detection rates in various security applications [10]. - The innovative business, particularly in industrial IoT and smart logistics, is positioned as a leader in the domestic market [10]. Market Position - The company has a market capitalization of approximately 261.9 billion CNY, with a total share capital of 923.32 million shares [5]. - The stock has shown a 52-week price range of 24.71 CNY to 35.52 CNY [5]. Valuation Metrics - The company’s price-to-earnings (P/E) ratio is projected to decrease from 18.6 in 2023 to 13.4 by 2027, indicating a potential undervaluation as earnings grow [4][11]. - The price-to-book (P/B) ratio is expected to decline from 3.4 in 2023 to 2.3 in 2027, reflecting improved financial health [4][11].

Investment Rating - The report maintains a "Buy" rating for Hikvision, expecting the stock price to outperform the industry index by over 15% in the next six months [5]. Core Views - Hikvision's innovative business is experiencing rapid growth, contributing significantly to overall revenue, which reached 224.84 billion yuan in 2024, accounting for 24.31% of total revenue [2]. - The domestic business is under pressure due to reduced government investment, leading to a decline in traditional sectors such as public security and traffic management [2]. - The overseas business has become a stable profit contributor, with revenue of 259.89 billion yuan in 2024, growing by 8.39% year-on-year [3]. - The company is committed to embracing AI and increasing R&D investment, with a R&D expense ratio of 12.83% in 2024 [3]. - In Q1 2025, the company demonstrated strong operational resilience by significantly reducing accounts receivable while still achieving revenue growth [4]. Financial Summary - For 2024, Hikvision reported total revenue of 92,496 million yuan, a year-on-year increase of 3.53%, while net profit attributable to shareholders was 11,977 million yuan, a decrease of 15.10% [1]. - The company expects to achieve revenues of 97,962 million yuan, 105,770 million yuan, and 115,839 million yuan for 2025, 2026, and 2027 respectively, with net profits projected at 13,277 million yuan, 14,941 million yuan, and 16,797 million yuan [9]. - The earnings per share (EPS) for 2025 is estimated to be 1.44 yuan, with a price-to-earnings (P/E) ratio of 20 times [9].

Investment Rating - The report maintains a "Recommended" investment rating for Hikvision (002415.SZ) with a current stock price of 28.37 yuan [1]. Core Views - The company reported a revenue of 92.496 billion yuan for 2024, reflecting a year-over-year growth of 3.53%, while the net profit attributable to shareholders decreased by 15.10% to 11.977 billion yuan [3][6]. - Hikvision's overall gross margin and net margin for 2024 were 43.83% and 14.21%, respectively, showing slight declines compared to the previous year [6]. - The report highlights the company's strong focus on technological innovation and the establishment of a flexible and efficient manufacturing system, with a total R&D investment of 47.702 billion yuan over the past five years [7][8]. Summary by Sections Financial Performance - In 2024, Hikvision achieved a revenue of 92.496 billion yuan, with a year-over-year growth of 3.5% projected for 2025 [5][11]. - The net profit for 2024 was reported at 11.977 billion yuan, with a forecasted increase to 13.247 billion yuan in 2025 [5][11]. - The company’s gross margin is expected to stabilize around 43.5% from 2025 to 2027, while the net margin is projected to gradually improve [11]. Business Segments - Domestic business segments showed a decline, with the Public Service Business Group (PBG) revenue at 13.467 billion yuan, down 12.29%, and the Enterprise Business Group (EBG) revenue at 17.651 billion yuan, down 1.09% [6]. - International business revenue increased by 8.39% to 25.989 billion yuan, while innovative business revenue grew by 21.19% to 22.484 billion yuan, accounting for 24.31% of total revenue [6][8]. R&D and Innovation - The company has established multiple R&D centers both domestically and internationally, focusing on a wide range of technologies including AI and IoT [7][8]. - Hikvision's innovative business, particularly in industrial IoT and smart logistics, is positioned to drive future growth, with a comprehensive service capability in AIoT [8]. Market Outlook - The report anticipates continued growth in net profit for 2025-2027, with projections of 13.247 billion yuan, 14.777 billion yuan, and 16.402 billion yuan, respectively [9]. - The company is recognized as a global leader in security monitoring products, with a strong presence in overseas markets and a growing innovative business segment [9].