$HIKVISION(002415.SZ) Quick Interpretation: The company's recent performance has not shown improvement, with a slight increase in revenue in the first quarter and a continued year-on-year decline in gross margin. The growth in the first quarter was mainly driven by innovative and overseas businesses, while domestic operations remain sluggish.

As the company's annual report was released alongside the first quarter results, the 2024 annual report provides more information. The decline in the domestic main business is the primary pressure on the company's current operations. Affected by government finances and other factors, the PBG business is expected to decline again by 14.4% in 2H24; the enterprise segment (EBG and SMBG) has also seen varying degrees of decline. Innovative business remains one of the few highlights, continuing to achieve double-digit growth.

Due to the ongoing sluggishness of the domestic main business, the market has lowered its expectations for the company. Currently, the market's focus is mainly on the potential recovery of the domestic main business and the empowerment of AI large models. Aside from the innovative business maintaining double-digit growth, there are no signs of improvement in this financial report, and the company's operations have not yet emerged from the bottom.