HIKVISION(002415) 华泰证券·2024-10-31 07:55Investment Rating - The report maintains a "Buy" rating for Hikvision with a target price of 35 CNY [6][4]. Core Insights - Hikvision's Q3 2024 revenue reached 23.78 billion CNY, a year-on-year increase of 0.3%, while net profit attributable to shareholders was 3 billion CNY, down 13.4% year-on-year. For the first three quarters of 2024, total revenue was 64.99 billion CNY, up 6.1% year-on-year, with a net profit of 8.1 billion CNY, down 8.4% year-on-year [1][4]. - The company clarified recent adjustments in its regional R&D structure and announced changes in key management positions during its earnings call on October 26. The report suggests that these organizational changes could help the company adapt to new opportunities and challenges in the market [1][2]. - The report emphasizes the importance of monitoring the effectiveness of the organizational adjustments and the turning point in domestic fixed asset investment cycles [2][3]. Summary by Sections Financial Performance - Q3 2024 revenue was 23.78 billion CNY, with a slight increase of 0.3% year-on-year. The net profit for the same period was 3 billion CNY, reflecting a decline of 13.4% year-on-year. Cumulatively, for Q1-Q3 2024, revenue was 64.99 billion CNY, up 6.1% year-on-year, while net profit was 8.1 billion CNY, down 8.4% year-on-year [1][4]. - The report projects a revenue of 94.4 billion CNY for 2024, with a year-on-year growth of 5.67%, and a net profit of 13.19 billion CNY, reflecting a decrease of 6.52% compared to 2023 [5][4]. Business Segments - The PBG (Public Business Group) segment is expected to generate 14.82 billion CNY in 2024, down 22.7% from 2021 due to reduced capital expenditures by local governments. However, government support for infrastructure projects may signal a potential recovery [2][3]. - The EBG (Enterprise Business Group) showed slight growth, while the SMBG (Small and Medium Business Group) faced significant declines due to inventory adjustments with distributors [3][4]. Market Outlook - The report highlights the need to observe when government investments may reach a turning point and the effectiveness of the company's strategic adjustments in response to market conditions [2][3]. - The overall market sentiment remains cautious, with domestic demand showing weakness and investment confidence needing improvement [3][4].