ECOVACS(SH:603486) GOLDEN SUN SECURITIES·2024-10-30 03:14Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company's revenue and profit have been under pressure due to slow domestic consumption recovery, intense industry competition, and delayed delivery of new product sales [2]. - The company has increased its marketing expenses significantly due to the pre-sale of multiple new products under the Ecovacs and Tineco brands, which has impacted profit growth [2]. - The gross margin has shown a steady increase, but the net profit margin has declined due to higher sales expenses and increased asset impairments [3]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 10.226 billion yuan, a year-on-year decrease of 2.90%, and a net profit attributable to shareholders of 615 million yuan, an increase of 1.88% [1]. - In Q3 2024, the company reported a revenue of 3.250 billion yuan, down 4.06% year-on-year, and a net profit of 6 million yuan, down 69.21% year-on-year [1]. - The gross margin for Q1-Q3 2024 was 48.39%, while for Q3 it was 46.82%, reflecting a year-on-year increase of 0.40 percentage points and 0.90 percentage points, respectively [3]. - The company expects net profits for 2024-2026 to be 1.021 billion yuan, 1.482 billion yuan, and 1.831 billion yuan, representing year-on-year growth rates of 66.9%, 45.1%, and 23.6% respectively [4]. Financial Metrics - The company's revenue for 2024 is projected to be 16.271 billion yuan, with a year-on-year growth rate of 5.0% [5]. - The earnings per share (EPS) for 2024 is estimated at 1.79 yuan, with a projected P/E ratio of 31.7 [5]. - The net asset return (ROE) is expected to be 14.7% in 2024, increasing to 19.6% by 2026 [5].