Zhejiang Meida(SZ:002677) Nan Fang Du Shi Bao·2025-08-13 04:02Core Viewpoint - Zhejiang Meida Industrial Co., Ltd. ("Zhejiang Meida") is experiencing a significant decline in its financial performance, with projected net profits for the first half of 2025 expected to drop by 84.11% to 88.21% compared to the previous year, primarily due to a slowdown in the integrated stove industry and adverse market conditions [1][2]. Financial Performance - For the first half of 2025, Zhejiang Meida anticipates a net profit of 11.5 million to 15.5 million yuan, a decrease of 84.11% to 88.21% year-on-year [1]. - The company's expected net profit after excluding non-recurring items is projected to be between 10 million and 14 million yuan, reflecting a decline of 85.59% to 89.71% compared to the same period last year [1]. - In 2024, Zhejiang Meida reported revenues of 877 million yuan, down 47.54% year-on-year, and a net profit of 110 million yuan, a decrease of 76.21% [2]. - Revenue growth rates for Zhejiang Meida from 2022 to 2024 were -15.24%, -8.80%, and -47.54%, while net profit growth rates were -31.97%, 2.68%, and -76.21% respectively [2]. Industry Context - The integrated stove industry, which was once in a rapid growth phase, is now facing challenges due to a slowdown in market demand, particularly influenced by the real estate market downturn and reduced consumer spending [1][2]. - The integrated stove market in China is projected to have a retail sales volume of approximately 17.3 billion yuan in 2024, representing a year-on-year decline of 30.6% [2]. - The integrated stove industry experienced a compound annual growth rate of 55.4% from 2016 to 2018, with sales increasing from approximately 6.1 billion yuan to about 13.6 billion yuan, and further rising to around 25.9 billion yuan in 2022 [1]. Strategic Initiatives - Despite the current challenges, Zhejiang Meida expresses confidence in its future development, focusing on core areas such as scenario-based, integrated, and AI-driven solutions to expand its product matrix and market space [2]. - The company plans to deepen channel reforms and promote the integration of diverse channels for quality development [2]. - Zhejiang Meida is also committed to enhancing operational efficiency through lean management practices to achieve sustainable high-quality growth and increase shareholder value [2]. Investment Activities - In June 2025, Zhejiang Meida announced an investment of approximately 11 million yuan in Motovis Limited, a smart driving solution provider, acquiring a 4.8657% stake in the company [3]. - This investment is aimed at capitalizing on growth opportunities in the smart driving sector and enhancing shareholder returns [3].