ECOVACS(SH:603486) Huafu Securities·2024-09-02 05:02Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [9]. Core Views - The company has shown a steady recovery in profitability and has launched a new stock incentive plan to enhance internal governance and employee motivation [3][4]. - The company is actively expanding its overseas market presence and enhancing its domestic offline channel distribution, with significant revenue growth in Europe [3][4]. - The financial forecasts for the company indicate a substantial increase in net profit from 2024 to 2026, with expected growth rates of 126%, 16%, and 10% respectively [3][4]. Financial Data and Valuation - For 2024, the company is projected to achieve a revenue of 13.84 billion yuan, with a net profit of 1.384 billion yuan, reflecting a 126% year-on-year increase [3][4]. - The earnings per share (EPS) is expected to rise from 1.08 yuan in 2023 to 2.43 yuan in 2025, with a corresponding price-to-earnings (P/E) ratio of 16.5 in 2024 and 14.2 in 2025 [3][4]. - The company’s asset-liability ratio is projected to decrease from 51.1% in 2023 to 42.7% in 2026, indicating improved financial stability [6].