HIKVISION(002415) 海通证券·2024-03-09 16:00Investment Rating - The report maintains an "Outperform" rating for the company [1] Core Views - The company is a leader in the intelligent IoT (AIoT) sector, continuously expanding its capabilities in AIoT and benefiting from the accelerating adoption of AIoT technologies [5] - The company's EBG (Enterprise Business Group) segment has clear growth potential, while SMBG (Small and Medium Business Group) and PBG (Public Business Group) segments are showing signs of recovery [5] - The company has developed a comprehensive "Guanlan" large model system, which is integrated into its product innovation and applications, enhancing AI deployment and performance [5] Financial Performance and Forecast - The company's revenue is projected to grow from 893 55 billion yuan in 2023 to 1119 91 billion yuan in 2025, with net profit increasing from 141 17 billion yuan to 194 60 billion yuan over the same period [6] - The EPS is expected to rise from 1 51 yuan in 2023 to 2 09 yuan in 2025 [6] - The company's gross margin is forecasted to remain stable, with a slight decline from 44 2% in 2023 to 42 7% in 2025 [7] Business Segments PBG (Public Business Group) - PBG focuses on government projects, particularly in public safety, traffic management, and urban governance, with over 2000 business scenarios and 250 industry solutions developed [24] - PBG revenue in H1 2023 was 6 273 billion yuan, accounting for 16 70% of total revenue, a 10 06% YoY decline [24] EBG (Enterprise Business Group) - EBG serves large enterprises, focusing on safety and operational efficiency, with revenue of 6 996 billion yuan in H1 2023, an 18 62% share of total revenue, and a 2 42% YoY increase [25] - The company is leveraging AI and IoT technologies to enhance enterprise digital transformation, with a strong focus on AI engineering and low-code platforms [54] SMBG (Small and Medium Business Group) - SMBG targets small and medium-sized businesses, with revenue of 5 752 billion yuan in H1 2023, a 15 31% share of total revenue, and an 8 50% YoY decline [25] - The company is addressing the fragmented market with platforms like Hikvision Interconnect and Hikvision Cloud Commerce, providing tailored solutions for SMEs [59] Innovation and AI - The company has built a comprehensive "Guanlan" large model system, which is integrated into its products, enhancing AI capabilities and deployment efficiency [5] - The company is actively exploring AI applications in various industries, with a focus on reducing deployment costs and improving operational efficiency [53] International Business - The company has a strong international presence, with 72 subsidiaries and offices globally, and H1 2023 international revenue of 12 067 billion yuan, accounting for 32 12% of total revenue [27] Innovation Business - The company's innovation business, including subsidiaries like Hikvision Robotics and Hikvision Storage, has shown significant growth, with revenue increasing from 6 168 billion yuan in 2020 to 15 070 billion yuan in 2022 [27] - H1 2023 innovation business revenue was 8 188 billion yuan, a 16 85% YoY increase, contributing to the company's long-term growth [27]