Hangzhou EZVIZ Network (688475) 财信证券·2024-10-31 09:00Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company has shown a revenue growth of 12.93% year-on-year for the first three quarters of 2024, achieving a revenue of 39.63 billion yuan. However, the net profit attributable to shareholders decreased by 6.69% year-on-year to 3.75 billion yuan [4][8] - The company is in a business cultivation phase, with expectations of revenue growth to 55.85 billion yuan in 2024, 64.84 billion yuan in 2025, and 74.66 billion yuan in 2026, alongside net profits of 5.71 billion yuan, 7.00 billion yuan, and 8.81 billion yuan respectively [4][8] Summary by Sections Financial Performance - In Q3 2024, the company reported a revenue of 13.79 billion yuan, reflecting a year-on-year increase of 12.70% and a quarter-on-quarter increase of 2.45%. The net profit for the same quarter was 931.85 million yuan, down 34.87% year-on-year and 40.76% quarter-on-quarter [4][5] - The company's gross margin and net margin for the first three quarters of 2024 were 42.88% and 9.46%, respectively, showing a decline compared to the previous year [6] Business Model and Growth Drivers - The company has established a "2+5+N" business model, focusing on home smart cameras, smart entry systems, service robots, and smart wearables. The home smart camera segment is experiencing good growth, with sales reaching 27.91 million units in H1 2024, a 9.2% increase year-on-year [5][6] - The smart entry segment is expected to achieve breakeven by Q4 2024, benefiting from high-end positioning and product innovation [5] Market Outlook - The overseas market and domestic retail are anticipated to contribute significantly to revenue growth, with higher consumer willingness to pay in international markets [6] - The company is undergoing a channel adjustment phase in the domestic market, which may impact short-term profitability but is expected to support long-term growth once completed [6][8]