HIKVISION(002415) 华创证券·2024-04-01 16:00Investment Rating - Strong Buy (Maintained) with a target price of 44 CNY [1] Core Views - The company released the "Hikvision Guanlan Large Model White Paper" and the 2023 performance report, achieving revenue of 89.355 billion CNY, a YoY increase of 7.44%, and net profit attributable to the parent company of 14.117 billion CNY, a YoY increase of 9.96% [1] - Q4 2023 saw rapid growth with significant cost reduction, with revenue of 28.08 billion CNY, a YoY increase of 19.77%, and net profit attributable to the parent company of 5.266 billion CNY, a YoY increase of 31.75% [1] - Innovation businesses, such as smart home and robotics, are becoming strong engines for sustainable growth, with smart home business achieving a net profit of 563 million CNY, a YoY increase of 68.8% [1] - The company is leveraging AI to transform into a global tech leader, with the Guanlan large model expected to be applied across various industries [1] - The company is expected to maintain strong growth in 2024, with projected net profit attributable to the parent company of 16.446 billion CNY in 2024 and 18.919 billion CNY in 2025 [1][2] Financial Performance Summary - Revenue for 2023 is expected to be 89.355 billion CNY, with a YoY growth of 7.4%, and is projected to reach 100.368 billion CNY in 2024 and 114.146 billion CNY in 2025 [2] - Net profit attributable to the parent company is expected to grow by 10.0% in 2023, 16.5% in 2024, and 15.0% in 2025 [2] - EPS is projected to be 1.51 CNY in 2023, 1.76 CNY in 2024, and 2.03 CNY in 2025 [2] - The company's P/E ratio is expected to be 22x in 2023, 19x in 2024, and 16x in 2025 [2] Innovation and AI Strategy - The company's innovation businesses, including smart home and robotics, are driving growth, with robotics division's IPO application accepted by the Shenzhen Stock Exchange [1] - The Guanlan large model, with its three-layer architecture, is expected to empower various industries through AI, with the white paper released in January 2024 [1] Valuation and Projections - The company is valued at a 2024 P/E of 25x, with a target price of 44 CNY [1] - The company's total market capitalization is 306.51 billion CNY, with a circulating market capitalization of 299.212 billion CNY [4]