ECOVACS(SH:603486) Xin Lang Zheng Quan·2025-05-15 09:49Core Viewpoint - The small home appliance industry in A-shares has shown significant revenue and profit growth in 2024, but there is a notable divergence in performance among companies, with many facing declining profits or losses [1][4]. Industry Overview - The small home appliance sector achieved a revenue of 1190.5 billion yuan and a net profit of 94.69 billion yuan in 2024 [1]. - The industry consists of 22 listed companies, characterized by a mix of consumer and technology attributes, with a diverse range of products including kitchen appliances, cleaning devices, personal care products, and environmental appliances [1]. - The competitive landscape is marked by a concentration of leading companies that leverage brand premium and R&D investment, while some firms struggle with high inventory and uncontrolled expenses [1]. Company Performance - Half of the companies in the small home appliance sector reported a decline in net profit or an increase in losses in 2024, indicating a challenging environment [1][4]. - Leading companies such as Supor, Xinbao, and Ecovacs reported revenues exceeding 10 billion yuan, with most achieving net profit growth, except for Stone Technology [2][3]. Profitability Analysis - Overall profitability in the small home appliance sector remains stable, with only one company, ST Dehao, reporting a loss [4]. - Eight companies have a net profit below 100 million yuan or are operating at a loss, while only four companies have a net profit exceeding 1 billion yuan [4]. - Companies like Aishida and Beilingsong reported significant net profit growth of 103.98% and 120.16%, respectively, but their non-recurring profit ratios were -230.41% and -31.96%, indicating low quality of earnings [4][7]. Cost Structure - The small home appliance industry generally has a higher gross margin compared to black and white goods, but there are significant internal disparities [5]. - Companies like Beilingsong have a gross margin exceeding 60%, yet their net margin is below 1%, highlighting issues with expense management [5][6]. - Sales expenses for many companies far exceed R&D expenses, with Beilingsong's sales expense ratio reaching 50.14%, indicating a heavy reliance on marketing over innovation [11]. Operational Efficiency - Some companies exhibit low operational efficiency, with inventory turnover days exceeding 100 days for several firms, indicating potential inventory accumulation risks [12][15]. - Companies like Supor and Stone Technology demonstrate efficient cash flow management, with turnover days of 44.53 and -37.81 days, respectively [14].