Event: The company will achieve revenue of 5.44 billion yuan in 2024, a year-on-year increase of +12.41%; The net profit attributable to the parent company was 500 million yuan, a year-on-year increase of -10.52%. Among them, 24Q4 achieved revenue of 1.48 billion yuan, a year-on-year increase of +11.1%; The net profit attributable to the parent company was 129 million yuan, a year-on-year increase of -20%.

In terms of revenue, as one of the main categories of AI applications, the Company continued to launch competitive products, continuously expand and optimize the construction of domestic and overseas channels, and achieved steady growth in overall operating revenue. Among them, the growth rate of smart door locks, cleaning appliances, and cloud platform businesses is outstanding. In terms of smart door locks, in 2024, the EZVIZ brand will perform well, showing strong development potential, according to Aowei data, its retail volume and retail sales in the online market increased by 145% and 154% year-on-year respectively, ranking first in the growth of key brands. In terms of cleaning appliances, according to Aowei data, the market share of EZVIZ sweeper lines in 24 years was 0.26%, +0.14% year-on-year, and the average price was +2.56% year-on-year. The revenue of the company's intelligent service robots in 24H1 was 55 million, a year-on-year increase of +273%, and as a new entrant in the sweeper track, the company's revenue growth rate increased rapidly. In terms of cloud platform business, the company's 24H1 cloud platform business was 495 million, accounting for 19% of revenue, a year-on-year increase of 30% (23 years of revenue of 860 million, accounting for 18%, a year-on-year increase of 28%), and the growth rate of cloud platform business revenue increased rapidly, and the proportion of revenue scale continued to expand, becoming one of the main driving forces for the company's revenue growth.

In terms of profit, the company's newly expanded intelligent new products are still in the early stage of market construction, and the investment in various marketing expenses has increased, so that the net profit attributable to the parent company has decreased year-on-year.

At the same time, the actual controller of the Company, a wholly-owned subsidiary of the Electric Technology Group, plans to increase its holdings by a total of not less than RMB200 million (inclusive) and not more than RMB400 million (inclusive) within 6 months from October 19, 2024, based on its confidence in the company's future development prospects and recognition of the company's value.

Investment suggestion: The company is a leading enterprise in the field of smart home, and the product side continues to expand categories and application scenarios through the integration of software and hardware, and gradually builds core barriers. On the revenue side, after years of cultivation, smart door locks have now entered the product harvest period, becoming the second curve that drives the company's revenue growth in addition to cameras; On the profit side, the change of channel structure, the improvement of product structure, and the cost reduction and efficiency increase brought about by the supply chain reform have led to the improvement of profit margin. According to the company's express report, we have appropriately raised the sales expenses, giving the net profit attributable to the parent company in 24-26 years 5/6.6/760 million yuan (the previous value of 5.7/6.9/790 million yuan), and the corresponding dynamic PE is 69x/52.9x/45.8x, maintaining the "overweight" rating.

Risk warning: the penetration of smart home is less than expected; The implementation of AI applications is not as expected; the risk that the development of new products is less than expected; the risk that overseas market expansion is less than expected; Raw material price fluctuation risk. The main financial data of the company's 2024 annual express report are preliminary accounting data, which have not been audited by accounting firms, and the specific data are subject to the data disclosed in the company's 2024 annual report.