整体业绩逐季走强，创新业务增速亮眼

Investment Rating - The report maintains a "Recommended" investment rating for Hikvision (002415.SZ) [1] Core Insights - The company reported a total revenue of 89.34 billion yuan for 2023, representing a year-over-year increase of 7.4%. The net profit attributable to shareholders was 14.11 billion yuan, up 9.9% year-over-year [1] - In Q1 2024, the company achieved revenue of 17.82 billion yuan, a 10.0% increase year-over-year, with a net profit of 1.92 billion yuan, reflecting a 5.8% growth [1] - The company has seen a strong quarterly performance in 2023, with innovative business segments growing significantly, contributing to a total revenue of 18.55 billion yuan, which is a substantial year-over-year increase of 23.11% [1] - The gross profit margin improved by 2.15 percentage points to 44.44% in 2023, with product and service gross margins at 46.34% [1] Financial Performance Summary - The company’s operating cash flow increased by 63.55% year-over-year, driven by improved sales collections [1] - For Q1 2024, the gross margin continued to rise, reaching 45.76% [1] - The company’s expenses for sales, management, and R&D were 9.77 billion, 2.64 billion, and 9.81 billion yuan respectively in 2023, with year-over-year changes of +3.27%, -2.41%, and +8.06% [1] Business Strategy and Innovation - The company is advancing six digital product lines centered around operational technology (OT), integrating IT and data technology (DT) to create comprehensive smart IoT solutions [1] - The company has launched the "Guanlan" large model, which includes a three-tier architecture of foundational, industry, and task models, enhancing its capabilities in cloud computing, big data, and artificial intelligence [1] - The large model has expanded its coverage to over 10 major industries and nearly 90 sub-industries, addressing over 500 specific scenarios to meet customized digital transformation needs [1] Future Projections - The company is projected to achieve revenues of 99.81 billion, 112.99 billion, and 125.36 billion yuan for 2024, 2025, and 2026 respectively, with year-over-year growth rates of 11.7%, 13.2%, and 11.0% [4] - The net profit attributable to shareholders is expected to reach 16.99 billion, 19.66 billion, and 22.69 billion yuan for the same years, with growth rates of 20.5%, 15.7%, and 15.4% [4] - The report forecasts an EPS of 1.82, 2.11, and 2.43 yuan for 2024, 2025, and 2026, with corresponding P/E ratios of 18, 15, and 13 [4]