Investment Rating - The report maintains a "Recommend" rating for VESYNC (02148 HK) with a target price of HKD 6 2 [1] Core Views - VESYNC achieved revenue of USD 300 million in H1 2024, a YoY increase of 7 0%, and net profit attributable to shareholders of USD 45 million, a YoY increase of 37 5% [1] - Revenue growth accelerated in Q2 2024, with Q1/Q2 YoY growth rates of 1 0%/23 7% respectively, driven by strong demand on Amazon and inventory adjustments [1] - Non-Amazon channels grew significantly by 46 8% YoY, while Amazon channel revenue declined by 3 4% due to platform policy adjustments [1] - North America market revenue increased by 13 0% YoY, driven by market share gains in air purifiers and humidifiers, while Europe revenue declined by 18 6% due to reduced demand in regions like Turkey [1] - Gross margin improved by 3 3 ppts to 48 5%, and net margin increased by 3 4 ppts to 15 1%, driven by cost optimization and improved operational efficiency [1] - The company is expected to accelerate growth through diversified non-Amazon channels and new product categories, with TikTok and YouTube platforms contributing to a social media following of 1 5 million [1] Financial Forecasts - Revenue is projected to grow to USD 676 million in 2024, USD 786 million in 2025, and USD 898 million in 2026, with YoY growth rates of 15 5%, 16 2%, and 14 3% respectively [2] - Net profit attributable to shareholders is forecasted to reach USD 90 million in 2024, USD 107 million in 2025, and USD 121 million in 2026, with YoY growth rates of 16 5%, 18 1%, and 13 4% respectively [2] - EPS is expected to increase from USD 0 07 in 2023 to USD 0 08 in 2024, USD 0 09 in 2025, and USD 0 11 in 2026 [2] - PE ratios are projected at 7x for 2024, 6x for 2025, and 5x for 2026 [2] Market and Product Performance - VESYNC's air purifier and humidifier market shares in the US increased by 5 7 ppts and 1 1 ppts to 33 3% and 23 9% respectively [1] - The vacuum cleaner category achieved a 6 8% market share on Amazon US in June 2024, contributing to incremental revenue growth [1] Valuation and Target Price - The target price of HKD 6 2 is based on a DCF valuation, implying a 10x PE for 2024 [1]
VESYNC：2024年中报点评：非亚马逊渠道高增，盈利能力持续改善