ECOVACS(SH:603486) KAIYUAN SECURITIES·2024-09-04 02:11Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The company achieved a revenue of 6.98 billion yuan in H1 2024, a year-on-year decrease of 2.4%, while the net profit attributable to shareholders was 610 million yuan, an increase of 4.3% [6] - The company has seen rapid growth in external sales, particularly in the European market, despite facing increased competition and a downturn in demand [6][7] - The profit forecast for 2024-2026 has been adjusted, with expected net profits of 1.384 billion yuan, 1.619 billion yuan, and 1.748 billion yuan respectively [6] Financial Performance Summary - In H1 2024, the gross margin was 49.1%, with a net profit margin of 8.7% [8] - The company’s Q2 2024 gross margin improved to 51.0%, reflecting effective cost control measures [8] - The company’s EPS for 2024 is projected to be 2.43 yuan, with corresponding P/E ratios of 17.3, 14.8, and 13.7 for 2024, 2025, and 2026 respectively [6][9] Sales Performance - The company's brands, Ecovacs and Tineco, saw external sales growth of 11% and 32% respectively in H1 2024 [7] - The sales revenue from the domestic offline market for Ecovacs and Tineco reached 34% and 26% respectively in H1 2024, indicating a strategic focus on optimizing offline network layout [7] Market Outlook - The company is expected to benefit from the growing demand for its products in overseas markets, particularly in Europe, where sales have shown significant growth [7] - The company is actively expanding its brand flagship stores, with a target of over 100 by the end of the year, which is anticipated to enhance brand visibility and sales [7]