HIKVISION(002415) 东吴证券·2024-05-26 05:00Investment Rating - The report assigns a "Buy" rating for Hikvision Technology Co., Ltd. (002415) for the first time [1]. Core Views - Hikvision is a global leader in visual IoT solutions and big data services, positioning itself in the "Smart IoT AIoT" sector to capitalize on the digitalization and intelligence trends in the video surveillance industry [3][12]. - The company has shown steady growth in its main business, driven by AI empowerment in the security industry, with a projected compound annual growth rate (CAGR) of 26% for the smart security market in China from 2021 to 2026 [3][25]. - Innovation in business segments has become a strong growth engine, with revenues from innovative businesses increasing significantly, contributing to 20.77% of total revenue in 2023 [3][18]. Summary by Sections 1. Global Security Leader and Smart IoT Strategy - Hikvision has transformed from a product supplier to a comprehensive solution provider, focusing on smart IoT technologies to enhance its market position [12][14]. - The company has maintained a stable shareholding structure, backed by state-owned enterprises, which supports its long-term strategic execution [15] 2. AI Empowerment in the Security Industry - The shift from traditional security to intelligent security is driven by AI technologies, enhancing real-time monitoring and preventive measures [21][23]. - The global smart security market is expected to reach $45 billion in 2023, with a CAGR of 30.26% from 2018 to 2023, indicating significant growth potential [25][26]. 3. Innovation Business Development - The company has successfully incubated eight innovative business platforms, with revenues from these segments growing from 2.697 billion to 18.553 billion yuan from 2018 to 2023, achieving a CAGR of 61.97% [3][18]. - The innovative business segments are expected to continue driving growth, with a focus on areas such as smart home, mobile robotics, and smart medical solutions [3][18]. 4. Earnings Forecast and Investment Recommendations - The report forecasts net profits of 16.3 billion, 19.2 billion, and 21.7 billion yuan for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings ratios of 19, 16, and 14 times [4].