HIKVISION(002415) 国盛证券·2024-08-18 01:07Investment Rating - Maintains a "Buy" rating [2] Core Views - Hikvision's H1 2024 performance met expectations with total revenue of RMB 41.209 billion, a YoY increase of 9.68%, and net profit attributable to shareholders of RMB 5.064 billion, a YoY decrease of 5.13% [1] - The company's innovation and overseas businesses are the primary growth drivers, with innovation business revenue reaching RMB 10.328 billion, a YoY increase of 26.13%, accounting for 25.06% of total revenue [1] - Overseas business grew by 15.46% YoY, becoming the second fastest-growing segment [1] - The Enterprise Business Group (EBG) has become the backbone of domestic operations, with revenue of RMB 7.489 billion, a YoY increase of 7.05%, surpassing the Public Business Group (PBG) in scale [1] - Gross margin remained stable at 45.05%, with expectations of continued stability in 2024 [1] - A one-time share-based payment expense of RMB 471 million due to the cancellation and modification of equity incentive plans caused short-term profit fluctuations, but this is expected to stabilize in H2 2024 [2] Financial Performance - Revenue for 2024E/25E/26E is projected to be RMB 97.212 billion, RMB 107.242 billion, and RMB 119.165 billion, respectively, with YoY growth rates of 8.8%, 10.3%, and 11.1% [3] - Net profit for 2024E/25E/26E is projected to be RMB 14.868 billion, RMB 16.570 billion, and RMB 18.795 billion, respectively, with YoY growth rates of 5.4%, 11.4%, and 13.4% [3] - EPS for 2024E/25E/26E is projected to be RMB 1.61, RMB 1.79, and RMB 2.04, respectively [3] - ROE for 2024E/25E/26E is projected to be 17.8%, 17.8%, and 18.0%, respectively [3] - P/E ratios for 2024E/25E/26E are projected to be 17.1x, 15.3x, and 13.5x, respectively [3] Business Segments - Innovation business, including subsidiaries like EZVIZ, Hikrobot, and Hikmicro, has established a strong position in their respective fields [1] - EBG has surpassed PBG in scale and growth, becoming the largest business group domestically [1] - SMBG (Small and Medium Business Group) showed minimal growth at 0.64% YoY, while PBG experienced negative growth [1] Valuation and Market Data - The stock closed at RMB 27.54 on August 16, 2024, with a total market capitalization of RMB 256.965 billion [4] - The company has a free float of 97.62% and a 30-day average trading volume of 24.02 million shares [4]