HIKVISION(002415) 长城证券·2024-04-26 10:32Investment Rating - The report maintains a "Buy" rating for Hikvision, expecting the stock price to outperform the industry index by over 15% in the next six months [8]. Core Insights - Hikvision's revenue for 2023 reached 89.34 billion yuan, a year-on-year increase of 7.42%, while the net profit attributable to shareholders was 14.11 billion yuan, up 9.89% year-on-year [1][2]. - The company has seen improvements across its business segments, with the PBG segment's revenue declining at a slower rate of 4.84% compared to a 15.79% decline in the previous year, while EBG and SMBG segments reported growth of 8.12% and 1.46%, respectively [1]. - The gross margin for 2023 was 44.44%, with the main products and services gross margin increasing by 2.60 percentage points to 46.34% [2]. - Hikvision has increased its R&D investment to 11.39 billion yuan in 2023, a 16.08% increase year-on-year, which is higher than the revenue growth rate [2]. - The company has completed its initial transformation towards smart IoT, leveraging AI investments to enhance product and algorithm development [2]. Financial Summary - Revenue projections for 2024-2026 are 98.64 billion yuan, 110.97 billion yuan, and 125.62 billion yuan, respectively, with net profits expected to be 16.74 billion yuan, 18.52 billion yuan, and 20.47 billion yuan [2]. - The report forecasts EPS of 1.79 yuan, 1.98 yuan, and 2.19 yuan for the years 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 18X, 16X, and 15X [2]. - The company's return on equity (ROE) is projected to be 19.2% in 2024, slightly decreasing to 18.5% by 2026 [4].