ECOVACS(SH:603486) Xin Lang Cai Jing·2025-05-02 10:37Core Viewpoint - The company reported a revenue increase of 6.7% year-on-year for 2024, driven by domestic subsidies and strong overseas growth, with significant improvements in net profit margins and gross margins for its products [1][2][3]. Revenue Performance - In 2024, the company achieved a revenue of 16.54 billion yuan, with a year-on-year growth of 6.7%. The sales of the Ecovacs brand service robots and the Tineco brand smart home appliances increased by 5.2% and 10.9%, respectively, accounting for 48.9% and 48.8% of total revenue [2]. - Domestic and overseas sales grew by 5.0% and 9.1%, respectively, making up 57.0% and 43.0% of total revenue. In Q4 2024, the company saw a significant increase in shipments, with Ecovacs and Tineco brands growing by 47.5% and 32.7% year-on-year, leading to a revenue growth of 27.1% in that quarter [2]. Profitability Analysis - The company's net profit attributable to shareholders for 2024 was 810 million yuan, reflecting a year-on-year increase of 31.7%. After adjusting for asset impairment losses, the Q4 net profit was 430 million yuan, corresponding to a net profit margin of 6.7% [3]. - In Q1 2025, the net profit attributable to shareholders was 470 million yuan, up 59.4% year-on-year, with a non-recurring net profit of 360 million yuan, representing a 24.2% increase. The non-recurring net profit margin was 9.2%, an increase of 1.0 percentage points [3]. Margin Improvements - The overall gross margin for 2024 improved by 1.9 percentage points to 46.5%. The gross margin for service robots decreased by 3.1 percentage points, while the gross margin for smart home appliances increased by 9.2 percentage points [3]. - In Q1 2025, the gross margin rose by 4.4 percentage points to 49.7%, with sales expense ratio, management expense ratio, R&D expense ratio, and financial expense ratio showing respective changes [3]. Fair Value Changes - The company recorded a net increase in fair value changes of 140 million yuan, primarily due to a change in the accounting treatment of its investment in Shanghai Xian Gong, which resulted in a profit increase of 110 million yuan in Q1 [4]. Profit Forecast and Valuation - The company is expected to benefit from domestic subsidies and continue to enhance its overseas product matrix and pricing strategy. The projected net profits for 2025-2027 are 1.53 billion yuan, 1.78 billion yuan, and 2.11 billion yuan, representing year-on-year growth rates of 90.0%, 15.9%, and 19.1%, respectively [5].