HIKVISION(002415) 海通国际·2024-04-25 01:30Investment Rating - The report assigns an "Outperform" rating to the company with a target price of RMB 49.62 [1][10]. Core Insights - The company has preliminarily completed its AIoT strategic transformation, targeting a net profit attributable to shareholders of RMB 16-17 billion for 2024. In 2023, total revenue reached RMB 89.34 billion, a year-on-year increase of 7.42%, with a net profit of RMB 14.11 billion, up 9.89% year-on-year [2][10]. - The company expects a "low and then high" performance trend in 2024, driven by digital transformation products and solutions for various enterprises. The EBG business outlook is optimistic, while PBG has opportunities despite potential revenue declines [3][10]. Financial Summary - In 2023, the company achieved total revenue of RMB 89.34 billion, with a net profit of RMB 14.11 billion. The gross profit margin was 44.44%, and the net profit margin was 16.96% [2][4]. - For Q1 2024, revenue was RMB 17.82 billion, a 9.98% year-on-year increase, with a net profit of RMB 1.92 billion, up 5.78% year-on-year [2][10]. - The forecast for 2024-2026 includes revenues of RMB 100.03 billion, RMB 113.26 billion, and RMB 131.36 billion, with net profits of RMB 16.53 billion, RMB 19.36 billion, and RMB 22.84 billion respectively [7][10]. Business Segments - The report highlights that the EBG business is expected to grow as the company helps enterprises improve quality, reduce costs, and increase efficiency. The PBG business remains optimistic despite potential revenue declines, while the SMBG segment has stabilized [3][10]. - The company is focusing on enhancing its innovation business, which has shown significant growth and is expected to contribute to overall revenue stability [5][10]. AI and Digital Transformation - The company has invested heavily in AI development, launching the "Guanlan" large model, which is expected to enhance its capabilities in various industry applications. This model has shown promising results in recent evaluations [6][10]. - The AI open platform has generated over 100,000 models across various projects, indicating strong growth in AI applications tailored to different industry needs [6][10].